Rs 20,000,00,00,000 Defence MRO & Upgrade Opportunity: Anil Ambani’s debt-free company forms a strategic partnership with Coastal Mechanics USA
The stock has given multibagger returns of 150 per cent from its 52-week low of Rs 169.75 per share.
Reliance Infrastructure Limited promoted, Reliance Defence Limited (Reliance Defence), today announced a strategic agreement with Coastal Mechanics Inc. (CMI), a leading U.S. Department of Defence authorised contractor, to jointly address India’s Rs 20,000 crore defence maintenance, repair, overhaul (MRO) and upgrade market opportunity.
Reliance Defence and Coastal Mechanics will focus on providing end-to-end Maintenance, Repair, Overhaul (MRO), upgrade, and lifecycle support solutions for the Indian Armed Forces, targeting a wide range of critical platforms such as 100+ Jaguar fighter aircrafts, 100+ MiG-29 fighter aircrafts, the fleet of Apache attack helicopters, L-70 air defence guns, and other legacy systems that require long-term sustainment and modernisation. The segment represents a high-value, long-duration opportunity driven by the Indian military’s strategic shift from asset replacement to lifecycle extension and performance-based logistics.
Reliance Defence and Coastal Mechanics will also set up Joint Venture (JV) at MIHAN in Maharashtra, to serve both the Indian market and export markets. This JV will provide complete Maintenance, Repair and Overhaul (MRO) and upgrade services for various air and land defence platforms used by the armed forces.
Coastal Mechanics supplies critical components to the U.S. Air Force and U.S. Army. Its partnership with Reliance Defence brings world-class manufacturing capabilities and global certifications into India’s aerospace ecosystem.
Reliance Defence aims to become one of India’s top three defence exporters. The partnership represents a significant step in advancing the Government of India’s ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiatives, aimed at indigenising defence production and reducing reliance on imports.
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About the Company
Reliance Group has two prominent companies under its umbrella, Reliance Infrastructure Limited and Reliance Power Limited, which are debt-free with zero outstanding loans from banks or financial institutions. The group's financial strength is reflected in its net worth and annual turnover, each amounting to Rs 33,000 crore, and market capitalisation around Rs 45,000 crore, with a shareholder base exceeding 4 million. Reliance Infrastructure Limited is active in the energy sector, focusing on power distribution in Delhi and power generation. The company also has interests in defence manufacturing and plays a key role in infrastructure development through special purpose vehicles (SPVs), including projects like the Mumbai Metro. Reliance Power, a leading power generation company in India with a total installed capacity of 5,305 MW, includes the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh, currently the largest integrated thermal power plant in the world.
The company has a market cap of over Rs 16,000 crore. The stock has given multibagger returns of 150 per cent from its 52-week low of Rs 169.75 per share. The promoters of the company own 16.50 per cent, FIIs own 11.35 per cent, DIIs own 1.36 per cent, the Government own 0.02 per cent and the public & others own the rest of the stake, i.e., 70.77 per cent as of March 2025.
Disclaimer: The article is for informational purposes only and not investment advice.