Rheinmetall and Reliance: Mega ammunition plant planned in India!

Rheinmetall and Reliance: Mega ammunition plant planned in India!

Rheinmetall AG from Düsseldorf and Reliance Defense Ltd from India have entered into an important strategic partnership in the field of ammunition production. A memorandum of understanding (MoU) was signed on May 28, 2025, which lays the foundation for close cooperation between the two companies. This partnership is aimed in particular at the joint production of explosives and propellants for medium and large caliber ammunition. With the implementation of the project, one of the largest ammunition factories in South Asia is planned in Watad, Maharashtra.

According to the agreements, this new production facility will achieve impressive annual capacities: up to 200,000 artillery shells, 10,000 tons of explosives and 2,000 tons of propellants. However, the exact start of operation of the planned system was not announced by the contractual partners. Rheinmetall hopes that this joint venture will stabilize supply chains and create an advantageous competitive position on the Indian arms market.

Strategic goals and market development

Under the leadership of Prime Minister Narendra Modi, India is pursuing ambitious goals in the defense industry. It plans to export $5 billion worth of defense equipment per year. To support this vision, Reliance Defense Ltd intends to set up an integrated defense cluster called Dhirubhai Ambani Defense City. This project is considered to be the largest privately developed defense project in India.

Additionally, Reliance Defense plans to set up joint ventures with up to six foreign partners to support the DADC project. The new manufacturing facility in Watad will not only help supply the Indian Armed Forces but also support the Indian government's vision of achieving a $5 trillion economy.

Expectations and commitments from partners

Armin Papperger, CEO of Rheinmetall AG, emphasizes the commitment to a partnership with India and the strategic importance of the project in an increasingly important market. Anil Ambani, founder of Reliance Group, is also positive about the partnership and highlights its importance for India's defense sector.

Through the cooperation, Rheinmetall is committed not only to securing the supply chains, but also to maintaining access to crucial raw materials. Both companies are also planning joint marketing activities for selected products in order to further expand the collaboration. Authorities mirror and Rheinmetall report on these far-reaching steps, which represent a new milestone in defense cooperation between Germany and India.