Anil Ambani's company signs big Rs 10000 crore defence pact with German firm, set to manufacture...

Anil Ambani's company Reliance Defence has signed a significant pact with Germany’s Diehl Defence. The move could reshape India’s defence production landscape. The partnership between the two companies will focus on the local production of the Vulcano 155mm precision-guided munition system—an advanced artillery shell designed for long-range, high-accuracy strikes. The Ambani-led Reliance Defence will lead the manufacturing effort as the prime contractor, while Diehl Defence will provide the core technology and system-level expertise.

Reliance Defence is a subsidiary of Reliance Infrastructure, which has a market cap of Rs 15979 crore, as of June 10. While the Uberlingen-based German company, Diehl Defence, is a global leader in defence systems. Its portfolio includes guided missiles, air defence systems, and advanced ammunition. The partnership signals a major step forward in India’s efforts to reduce dependence on imported defence equipment. The Reliance firm estimates that this partnership could generate up to Rs 10,000 crore in revenue. 

Vulcano system

The Vulcano 155mm system uses cutting-edge laser and GPS-guided targeting to deliver pinpoint accuracy. This makes it a valuable asset for the Indian Armed Forces, especially in modern combat scenarios where precision is critical. The production will take place at a new greenfield facility in the Watad Industrial Area, Ratnagiri, Maharashtra, which will be part of the Dhirubhai Ambani Defence City (DADC).

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The manufacturing initiative will include over 50 per cent indigenous value addition, directly supporting India’s defence indigenisation goals. It also aligns with the government’s target of achieving Rs 50,000 crore in defence exports by 2029.