One of the biggest defense and ammunition producers in the world, Rheinmetall Waffe Munition GmbH of Germany, has placed a historic export order worth ₹600 crore with Reliance Defence Ltd, the defense division of Reliance Infrastructure Ltd.
Following the two companies’ recent strategic alliance, this agreement, which was announced on June 25, 2025, is one of the biggest ever for an Indian private enterprise in the high-tech ammunition sector.
With this order, Reliance Defence will supply Rheinmetall with explosives and propellants for ammunition, thereby expanding its presence in the European defense sector.
The deal is a key component of Reliance Defence’s goal to rank among the top three defense exporters from India in the next 12 to 24 months, which is in line with the government’s “Make in India” and “Atmanirbhar Bharat” (self-reliant India) programs to increase exports and domestic manufacturing.
Reliance Defence is building a sizable integrated manufacturing facility in Ratnagiri, Maharashtra, as part of the Dhirubhai Ambani Defence City (DADC) project to support this and other international orders. With an expenditure of ₹5,000 crore over the next five years, this greenfield project—which is expected to be the biggest of its kind by a private Indian company—will produce small guns, explosives, and ammunition.
Up to 200,000 artillery shells, 10,000 tons of explosives, and 2,000 tons of propellants can be produced annually at the site.
It is anticipated that the collaboration will promote technology transfer, improve domestic capabilities, and bolster India’s position in the global defense supply chain, especially in Europe. The agreement, according to Reliance Group Chairman Anil D. Ambani, is a turning point for India’s private defense manufacturing industry, establishing Reliance Defence as a reliable international supplier and delivering state-of-the-art capabilities to the nation.
The market was immediately affected by the announcement, as Reliance Infrastructure’s stock rose 5% to reach the upper circuit at ₹404.05, indicating that investors were very optimistic about the company’s potential for defense exports and its capacity to use international alliances for sustained growth.
In addition to solidifying Reliance Defence’s position in the global defence arena, the 600 crore export order from Rheinmetall also makes a substantial contribution to India’s strategic goals of independence, technical development, and worldwide competitiveness in the defence industry.
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