Reliance Infra joins the likes of Tata Group, Adani and Larsen & Toubro for defence manufacturing
Anil Ambani's flagship firm Reliance Infrastructure Ltd on Tuesday said it will invest Rs 10,000 crore over the next ten years in setting up India's largest integrated project in Ratnagiri in Maharashtra for the manufacturing of explosives, ammunition, and small arms.
The company has been allotted 1,000 acres of land in Watad Industrial Area of Ratnagiri, Maharashtra to develop Dhirubhai Ambani Defence City (DADC), the firm said in a statement.
"DADC will be the largest greenfield project in the defence sector in India by any private sector company," it said.
Reliance Infra joins the likes of Tata Group, Adani and Larsen & Toubro for defence manufacturing.
"Reliance Infrastructure will invest over Rs 10,000 crore over the next 10 years," the statement said. "Reliance Infrastructure through its subsidiaries has exported defence equipment worth more than Rs 1,000 crore over a period of time."
Its wholly-owned subsidiaries Jai Armaments Ltd and Reliance Defence Ltd already have licenses from the government for manufacturing of arms and ammunition.
The project envisions potential joint ventures with up to six leading global defence companies and will include a wide range of ammunition, from small to large calibres, as well as terminally guided munitions (TGM).
The small arms portfolio will cater to export markets for both civil and military applications.
The statement did not reveal names of joint venture partners.
Reliance Infra already has joint ventures with French defence firms Dassault Aviation and Thales.
It is also worth noting that recently the company's board, on September 19, had approved a Rs 6,000-crore fundraise plan. Of this, Rs 3,014 crore was to be raised through preferential allotment of shares or convertible warrants, while Rs 3,000 crore will be raised by QIP.