The German armaments firm Diehl Defence and Anil Ambani’s Reliance Defence have signed a strategic partnership deal for the local production of the Indian Army’s cutting-edge Vulcano 155mm Precision Guided Munition (PGM) system. Given the rising demand for sophisticated ammunition systems and the company’s expanding role in indigenizing vital defense technologies, this historic alliance is anticipated to bring in up to ₹10,000 crore in revenue.
The Vulcano 155mm PGMs are next-generation terminally guided munitions with sophisticated laser and GPS-guided targeting systems. The partnership was first established in 2019 and is currently concentrated on the urgent delivery of these weapons. These munitions are extremely resistant to opponent jamming attempts because they have strong electronic counter-countermeasure (ECCM) capabilities and can home in on targets within 10 seconds of arriving in the predicted impact zone. The Vulcano system is an essential tool for contemporary combat because of its accuracy and durability, which greatly improves the Indian Army’s attack capabilities.
Reliance Defence would establish a state-of-the-art, greenfield manufacturing plant in Ratnagiri, Maharashtra’s Watad Industrial Area as part of the agreement. The plant is built to satisfy both domestic needs and export goals, with an annual capacity of up to 200,000 artillery shells, 10,000 tons of explosives, and 2,000 tonnes of propellant. In keeping with the Indian government’s Make in India and Atmanirbhar Bharat programs, more than half of the content for the Vulcano system will be indigenous, helping the country reach its goal of ₹50,000 crore in defense exports by 2029.
In addition to strengthening India’s defense manufacturing capabilities, Anil Ambani emphasized that this partnership establishes Reliance Defence as a key participant in the global defense supply chain. Building on its prior partnerships with Dassault Aviation, Thales Group, and Rheinmetall, the alliance with Diehl Defence, a world-renowned leader in guided munition technology, enhances Reliance’s global footprint.
Diehl Defence CEO Helmut Rauch reaffirmed the company’s dedication to the Indian market and the Make in India campaign, expressing faith in the partnership’s long-term strategic worth for both businesses and India’s defense industry.
Through the domestic production of state-of-the-art Vulcano 155mm precision-guided munitions, the Reliance-Diehl partnership represents a significant step in advancing India’s technological sovereignty in defense, igniting sustainable growth, and establishing the nation as a formidable leader in the international defense arena.