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Reliance Defence Ltd has entered into a strategic cooperation agreement with German defence firm Diehl Defence to manufacture the Vulcano 155mm Precision Guided Munition system locally. This partnership, part of the 'Make in India' and 'Atmanirbhar Bharat' initiatives, aims to supply cutting-edge artillery shells equipped with advanced targeting technologies to the Indian Armed Forces. The collaboration, which builds upon an earlier pact signed in 2019, reflects Reliance Defence's intent to emerge among the top three private defence exporters in India. The deal includes the setup of a high-tech manufacturing facility in Maharashtra.
Reliance Defence Ltd, headed by Anil Ambani, has announced a strategic cooperation agreement with Germany-based Diehl Defence to produce next-generation terminally guided munitions (TGMs) for the Indian Armed Forces. The deal, revealed earlier this week, aims to locally manufacture the Vulcano 155mm Precision Guided Munition (PGM) system, marking a major stride in India's private-sector defence manufacturing landscape. Advertisement
In an official statement, Reliance Defence confirmed that the collaboration would support indigenous production of state-of-the-art artillery shells equipped with electronic counter-countermeasure (ECCM) capabilities, enhancing their resistance to enemy jamming efforts. The 155mm PGMs are designed to lock onto targets within ten seconds of reaching the anticipated impact zone, offering precision accuracy through laser and GPS-guided targeting technologies.
The company highlighted that this initiative is in line with India's push for self-reliance in defence manufacturing. It estimated a potential revenue opportunity of INR 10,000 crore through the development and supply of these advanced systems, noting that the collaboration showcases not just growth prospects but also its capability to domestically integrate critical defence technologies.
The strategic cooperation builds upon a 2019 partnership between Anil Ambani and Diehl Defence CEO Helmut Rauch, who, in a joint statement, reiterated their commitment to the Indian market and to furthering the government's 'Make in India' objectives. The focus remains on the rapid supply of the Vulcano 155mm PGMs to meet pressing requirements of the armed forces.
Parallel to this supply effort, the 'System Vulcano 155mm under Make in India-II' programme is progressing, with Reliance Defence serving as the prime contractor and Diehl Defence offering system-level expertise and proprietary technology. The project is expected to feature over 50% indigenous value addition, reinforcing India's Atmanirbhar Bharat mission.
Reliance Defence also revealed plans to build a high-tech, greenfield manufacturing facility at Watad Industrial Area in Ratnagiri, Maharashtra. The plant is projected to support India's ambitious defence export target of INR 50,000 crore by 2029. Once operational, it will have the capacity to produce up to 200,000 artillery shells, 10,000 tonnes of explosives, and 2,000 tonnes of propellant annually.
This partnership with Diehl Defence marks Reliance Group's fourth major international defence alliance, following its previous collaborations with Dassault Aviation, Thales Group, and Rheinmetall. Through these alliances, the company aims to bolster its role in advanced indigenous defence manufacturing.
Helmut Rauch expressed optimism over the enhanced collaboration, viewing it as a significant step in supporting India's growing defence needs. Anil Ambani conveyed that this strategic tie-up would not only accelerate India's defence production capabilities but also elevate Reliance Defence's standing in the global defence supply ecosystem. He added that the partnership reflects a commitment to driving technological sovereignty and reinforcing India's position on the global defence stage.
By embedding high-end munitions technology within the domestic manufacturing framework, Reliance Defence is poised to contribute significantly to both operational preparedness and export competitiveness. The initiative reinforces the role of private sector players in shaping a resilient and technologically advanced defence ecosystem for India, while aligning with national priorities of self-sufficiency and global market integration.
Source - PTI
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