Reliance Defence to supply artillery shells to German firm Rheinmetall

The Anil Ambani-backed Reliance Defence Ltd has tied up with German firm Rheinmetall AG to make explosives and propellants for medium and large caliber ammunition for global customers, the companies said.

The two companies also intend to engage in joint marketing activities for selected products and are aiming to further extend their cooperation based on future opportunities, a statement said.

Reliance Defence Ltd will set up a greenfield manufacturing facility in the Watad Industrial Area, of Ratnagiri, Maharashtra.

The manufacturing facility, one of the largest in South Asia, will have an annual capacity of up to 200,000 artillery shells, 10,000 tons of explosives and 2,000 tons of propellants.

The cooperation gives Düsseldorf-based Rheinmetall “further access to important raw materials and secures not only its supply chains but also creates further growth opportunities.”

“The partnership illustrates our strong commitment to partner with India under the strong leadership of Prime Minister Narendra Modi,” Armin Papperger, CEO of Rheinmetall AG, said.

“We are delighted to partner with Rheinmetall. This is a transformational moment for our defense sector and for Reliance Infrastructure’s subsidiary,” Anil Ambani said.

Reliance Defence had earlier announced plans to set up an integrated project for the manufacturing of explosives, ammunition and small arms under the Dhirubhai Ambani Defence City (DADC).

The DADC is being built in the Watad industrial area in Ratnagiri, Maharashtra, and once completed will be the largest greenfield project in the defense sector ever developed by any private company in India.

To be sure, Rheinmetall Air Defence, a unit of Rheinmetall, was one of six companies blacklisted by the ministry of defense for their involvement in a bribery scandal in April 2012.

The companies were initially debarred from doing business with the ministry for 10 years, before the ban was extended for three more years in 2022.

The companies were accused of bribing the director general of the Ordnance Factories Board (OFB), Sudipta Ghosh.

Last month, the ministry again extended the ban for an additional three years.

The banned companies are Singapore Technologies Kinetics Ltd, Israel Military Industries Ltd, TS Kisan and Co. Pvt. Ltd, RK Machine Tools Ltd, Rheinmetall Air Defence (Zurich), and Corporation Defence (Russia).