Reliance Defence Ammunition, promoted by India’s largest private sector enterprise power utility and construction company Reliance Infrastructure Ltd (RInfra), has entered into a strategic partnership with Yugoimport of Serbia for ammunition manufacturing in India.

Anil Ambani, Chairman, Reliance Group, after his meeting with Aleksandar Vucic, the President of Serbia, on Tuesday, announced the partnership with Yugoimport covering wide areas of cooperation in the defence sector.

In a filing with the BSE, RInfra said hat the two companies will work together in the field of ammunition, among others, with projected minimum requirement of Rs 20,000 crore over the next 10 years from the Indian armed forces.

“In addition, there is a large requirement which is currently being met through imports and there is a potential for greater indigenisation. Given the large Indian market size, economies of scale offer option for exports,” the company said. The Indian government recently issued eight RFPs for different grade of ammunition, opening the field to the private sector for the first time.

According to RInfra, the current proposal envisages transfer of technology by the original equipment manufacturers (OEMs) and indigenous manufacturing in India.

Yugoimport, a Serbian state-owned enterprise, is a market leader in the field of ammunition and has offered a fully compliant technical solution to meet the Make in India requirements of the Indian Government. Ammunition manufacturing by Reliance is proposed at a Greenfield facility, catering to the current and future requirements.

Meanwhile, Reliance Defence Ammunition will also undertake joint development of next generation ammunition to meet the future requirements of the Indian armed forces, RInfra said.

“India currently imports nearly 50% of its ammunition requirements by value term, with an annual spending of more than Rs 10,000 crore on ammunition. With new inductions of air defence and artillery guns, this requirement is bound to increase significantly,” the company added.

RInfra shares were trading in red at Rs 479.30, down 1.01% from the previous closing of Rs 484.20, on BSE at 3.02 pm today.

here is company details.

 

NOTE :You need to login first to access this feature.