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In a significant stride toward enhancing India’s indigenous defence manufacturing capabilities, Reliance Defence has signed a landmark strategic cooperation agreement with Germany’s Diehl Defence, a global leader in guided munitions and missile systems.
The partnership will focus on the production of the Vulcano 155mm Precision Guided Munition (PGM)—a state-of-the-art artillery system that integrates advanced GPS and laser guidance technologies to deliver unmatched accuracy and lethality. Designed to meet the evolving needs of the Indian Armed Forces, this system represents a major leap in India’s precision strike capabilities.
“This strategic alliance not only accelerates India’s defence manufacturing journey but also establishes Reliance Defence as a key player in the global high-precision munitions supply chain,” said Anil D. Ambani, Chairman of the Reliance Group. “It underscores our commitment to technological sovereignty, sustainable industrial growth, and positioning India as a leading force in the global defence landscape.”
With an estimated revenue potential of ₹10,000 crore, the deal marks Reliance Defence’s most significant foray yet into the high-end munitions segment. The company will set up a fully-owned greenfield manufacturing facility at the Dhirubhai Ambani Defence City in Ratnagiri, Maharashtra. This facility will play a vital role in meeting domestic military requirements and contribute to achieving India’s ambitious defence export target of ₹50,000 crore by 2029.
Highlighting the strategic significance of Indo-German defence collaboration, Helmut Rauch, CEO of Diehl Defence, noted, “Diehl Defence is pleased to deepen our partnership with Reliance in the domain of Terminally Guided Munitions for the Indian Armed Forces. This venture marks a key milestone in our shared commitment to innovation and security.”
It is Reliance Group’s fourth major global defence partnership, following collaborations with France’s Dassault Aviation and Thales Group and Germany’s Rheinmetall. The alliance with Diehl Defence further strengthens Reliance’s position as a leading Indian private-sector partner in advanced weapon systems.
Aligned with the government’s flagship ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, the new facility will achieve over 50% indigenous value addition, reinforcing India’s push towards self-reliance in critical defence technologies.
Diehl Defence, with an annual turnover exceeding €2 billion (₹20,000 crore), brings decades of expertise in precision-guided munitions and air defence systems. Its partnership with Reliance Defence is poised to be a transformational force in India’s emergence as a global hub for defence production and exports.
As India continues to modernise its military and reduce strategic dependencies, this Indo-German collaboration marks a new chapter in bilateral defence relations, signalling the growing role of private enterprise in safeguarding national security.
Team BharatShakti
