Reliance Infrastructure Ltd.'s defence arm hashed out more details about its strategic partnership on guided munition or terminally guided munition with German firm Diehl Defence, according to an exchange filing on Tuesday.
The partnership between Reliance Defence and Diehl Defence is based on a cooperation agreement, which was signed in 2019. The agreement was on the supply of guided munitions to the Indian armed forces.
"The main purpose of the current Strategic Cooperation Agreement is to focus on the urgent supply of the 'System Vulcano 155mm Precision Guided Munition' for the Indian Armed Forces," the filing said.
The companies also set into motion the 'System Vulcano 155 mm under Make in India-II' initiative.
"This strategic alliance not only accelerates the advancement of India's defence manufacturing capabilities but also positions Reliance Defence as a pivotal player in the global defence supply chain," Anil Ambani, chairperson of Reliance Group, said.
Reliance Defence will be the prime contractor for the Indian customer and Diehl Defence will be strategic partner. The overall indigenous content in the project under the 'Make in India' scheme will be more than 50%.
The company expects this partnership to also benefit from Reliance setting up a greenfield manufacturing facility in the Watad Industrial Area in Ratnagiri, Maharashtra, which will eventually have an annual capacity to produce up to 200,000 artillery shells, 10,000 tonnes of explosives and 2,000 tonnes of propellant.
Shares of Reliance Infrastructure closed 3.65% higher at Rs 404.6 apiece on the NSE before the announcement, compared to a flat benchmark Nifty. The stock has risen 118.07% in the last 12 months and 33.03% on a year-to-date basis.
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