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Rheinmetall and Reliance Defence announced an ammunition partnership on 22 May 2025, including planned Indian production of artillery shells, explosives and propellants. The agreement sets out intended cooperation and capacity; the announcement alone does not show that the facility is operating or producing at those levels.
What is the Rheinmetall–Reliance Defence partnership?
Rheinmetall AG, a German defence company, said it had signed a memorandum of understanding with India’s Reliance Defence Ltd for strategic cooperation in ammunition. The announcement was dated 22 May 2025 and described a German–Indian partnership. Rheinmetall’s announcement says the companies intend to work together in several ways:
- Reliance Defence would supply explosives and propellants for medium- and large-calibre ammunition to Rheinmetall.
- The companies would pursue joint marketing for selected products.
- They aimed to extend cooperation as future opportunities arise.
Rheinmetall presented the arrangement as a way to access raw materials, strengthen supply chains and create potential growth opportunities. It also linked the planned facility to supplies for India’s armed forces. These are the company’s stated rationale and expectations, not independently established results.
What is planned for the Ratnagiri facility?
Rheinmetall said Reliance Defence would establish a greenfield manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra. Rheinmetall announced the following planned annual capacities:
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| Product | Announced planned annual capacity |
|---|---|
| Artillery shells | Up to 200,000 |
| Explosives | 10,000 tonnes |
| Propellants | 2,000 tonnes |
These are capacity figures stated by Rheinmetall in its 2025 announcement. They are not verified production figures, and “up to” applies to the shell capacity. The announcement does not establish that the facility is operational, has reached these capacities or has supplied ammunition.
Is Rheinmetall making ammunition in India?
The 2025 agreement describes an intended partnership and Reliance Defence’s planned facility in India. It also identifies a proposed supply relationship in which Reliance would provide explosives and propellants to Rheinmetall. On the evidence of that announcement, it is accurate to say the companies planned Indian ammunition-related manufacturing and cooperation; it is not accurate to treat planned production as confirmed current output.
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How does the agreement fit India–Germany defence cooperation?
On 23 April 2026, India’s Ministry of Defence reported that Defence Minister Rajnath Singh invited German industry to co-develop and co-produce with India, particularly in niche technologies. The ministry described partnerships as valuable amid geopolitical shifts, supply-chain disruptions and technological change. This provides wider policy context, but does not establish a government role in the Rheinmetall–Reliance agreement or confirm that its plans have been implemented. India’s Ministry of Defence statement
Other defence-industry announcements are separate agreements, not evidence about this one. For example, FN Herstal announced an MoU with Kalyani Strategic Systems on 3 September 2026 to evaluate local manufacturing and industrial cooperation in small arms, integrated weapon systems and counter-UAS solutions. FN Herstal’s announcement concerns different companies and products. Rheinmetall’s separate March 2026 MoU with Spain’s Indra Group concerns military vehicle systems and prospective European and Latin American work, not the India partnership. Rheinmetall’s announcement about Indra
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What Rheinmetall said about the partnership
Rheinmetall CEO Armin Papperger said: “this Strategic Partnership of Rheinmetall with Reliance Defence led by Anil Ambani’s Reliance Group illustrates our strong commitment to partner with India under the strong leadership of Prime Minister Modi”. This is the company’s quoted statement about its commitment, not a description of verified production or outcomes.
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