India’s Reliance Defence and Germany’s Rheinmetall have signed a memorandum of understanding to collaborate on large-scale ammunition production.

A key feature of the partnership is Reliance’s establishment of a greenfield manufacturing facility based in the Watad industrial area in the southwest of India, as well as committing both companies to work together on marketing and expansion.

Reliance’s upcoming facility, expected to have a yearly production of up to 200,000 artillery shells, 10,000 tons of explosives, and 2,000 tons of propellants, will enable the Indian defense company to supply explosives and propellants for medium- and large-caliber ammo to Rheinmetall as part of the agreement.

This arrangement means enhancing Rheinmetall’s supply chain security and increasing access to crucial raw materials. It will also contribute to New Delhi’s “Make in India” initiative, achieving its defense export target of $5 billion, and supply the country’s armed forces.

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