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In a move poised to strengthen India’s military manufacturing ecosystem, Anil Ambani-backed Reliance Defence has signed a Rs 10,000 crore strategic cooperation agreement with Germany’s Diehl Defence to locally produce the Vulcano 155mm precision-guided munition system.
The partnership was formally announced on June 10, marking a major milestone in India’s push toward defence self-reliance and indigenous production under the ‘Aatmanirbhar Bharat’ initiative.
Advanced Munition to Boost Artillery Precision
The Vulcano 155mm is not a conventional artillery shell. Engineered for long-range and high-accuracy targeting, it combines laser and GPS guidance systems to deliver pinpoint strikes, making it especially vital in modern combat where precision outweighs volume.
By integrating this technology into its arsenal, the Indian Armed Forces are expected to benefit from enhanced operational capabilities, particularly along sensitive and strategic borders.
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Manufacturing Hub in Maharashtra
Reliance Defence, a subsidiary of Reliance Infrastructure, will serve as the prime contractor, while Diehl Defence brings its core technologies and system-level expertise to the table.
Production will take place at a newly established greenfield facility in Watad Industrial Area, Ratnagiri, Maharashtra, as part of the upcoming Dhirubhai Ambani Defence City (DADC).
The project is set to deliver more than 50% indigenous value addition, directly contributing to India's efforts to reduce dependency on foreign imports and build a robust domestic defence industry.
The partnership is expected to not only boost local production but also generate Rs 10,000 crore in revenue, amid increasing demand for high-precision ammunition systems worldwide.
