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As part of the agreement, Reliance Defence will supply the explosives and propellants for medium and large caliber ammunition to Rheinmetall.
This is the third such partnership for Reliance Defence, following its deals with France’s Dassault Aviation and Thales Group.
According to a statement issued by Reliance Infrastructure, Reliance Defence and Rheinmetall will engage in joint marketing activities for select products.
Reliance Defence will set up a greenfield manufacturing facility in Ratnagiri’s Watad industrial area.
The facility, to be called the Dhirubhai Ambani Defence City (DADC), will be one of the largest in south Asia, and will have the capacity to produce up to 200,000 artillery shells, 10,000 tons of explosives, and 2,000 tons of propellants annually.
Earlier, Reliance Defence had announced plans to set up an integrated project for the manufacturing of explosives, ammunition and small arms in DADC.