Reliance Infra To Invest Rs.10,000 Crore in Defence Project in Maharashtra

Anil Ambani-led Reliance Infrastructure will make a big move in the defence sector by announcing a Rs.10,000 crore investment over the next decade. The company plans to establish India’s largest integrated project for manufacturing explosives, ammunition, and small arms in Ratnagiri, Maharashtra. This development, known as the Dhirubhai Ambani Defence City (DADC), will be spread over 1,000 acres in the Watad Industrial Area, marking a huge greenfield initiative for the private sector in the country’s defence manufacturing.

Largest Greenfield Defence Project by a Private Entity

Reliance Infrastructure’s Dhirubhai Ambani Defence City will be the largest greenfield defence project by any private player in India, aligning the company with major defence sector names like Tata Group, Adani, and Larsen & Toubro. With a long-term vision, the company is setting its sights on both domestic production and international exports.

Through its subsidiaries, Jai Armaments Ltd and Reliance Defence Ltd, Reliance Infrastructure already holds government licenses for manufacturing arms and ammunition. Over time, these entities have exported defence equipment worth more than Rs.1,000 crore.

Joint Ventures with Global Players

Reliance Infrastructure’s plans include potential joint ventures with up to six leading global defence companies. While specific partners were not disclosed, the project aims to produce a wide range of ammunition—from small to large calibre, including terminally guided munitions (TGM). The company also plans to tap into the export market for small arms, serving both civilian and military applications.

Strengthening India’s Defence Sector

This project will help Reliance Infrastructure solidify its presence in the defence manufacturing sector. The company already has joint ventures with French defence firms Dassault Aviation and Thales at MIHAN in Nagpur, focusing on exports.

Reliance Infra’s stock is currently trading at Rs.262.00, marking a 2.93% gain today, with a year-to-date increase of 23.70% and a 54.34% rise over the past year.

Conclusion: Reliance Infrastructure’s Rs.10,000 crore investment will help make India a hub for defence manufacturing. By capitalizing on global partnerships and its subsidiaries’ expertise, the company seems positioned to contribute to India’s defence sector growth while expanding its reach in international markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.