Strategic Move: Reliance Defence Forms 3rd Global Defence Alliance with Rheinmetall AG
The company has delivered a 1-year return of 83.91 per cent and a 3-year return of 202.48 per cent.
Reliance Infrastructure Limited has announced a major strategic partnership through its subsidiary, Reliance Defence Limited, with Rheinmetall AG, a leading global defence manufacturer. This marks the third significant international collaboration for Reliance Defence, following its earlier partnerships with Dassault Aviation and Thales Group. The latest alliance focuses on supplying explosives and propellants for medium and large-caliber ammunition, alongside plans for joint marketing initiatives.
As part of this agreement, Reliance Defence intends to establish a 100 per cent owned greenfield facility at the Dhirubhai Ambani Defence City in Maharashtra. Once operational, this facility will be India’s largest integrated defence manufacturing unit. The move is aligned with national initiatives such as ‘Make in India’ and ‘Atmanirbhar Bharat’, aiming to strengthen domestic production capabilities and enhance India’s role as a global defence exporter. The facility is also expected to contribute meaningfully to India’s defence export goal of Rs 50,000 crore by 2029.
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Anil D. Ambani, Founder and Chairman of Reliance Group, highlighted the importance of this collaboration, saying, “We are proud to partner with Rheinmetall AG, one of the world’s most respected leaders in defence manufacturing, and to collaborate with visionary leader, Armin Papperger. This strategic partnership brings cutting-edge capabilities to India, marking a transformational moment for the country’s private defence manufacturing sector.”
As of May 23, 2025, the stock price of Reliance Infrastructure Limited stands at Rs 305.2, with a 52-week high of Rs 336.85 and a 52-week low of Rs 149.95. The company has delivered a 1-year return of 83.91 per cent and a 3-year return of 202.48 per cent, reflecting multibagger growth for long-term investors. Its market capitalization is Rs 12,090 crore and the current price-to-earnings (PE) ratio is 44.36.
Reliance Infrastructure is a key player in the Indian infrastructure sector, engaged in projects across power, roads, metro rail, and airports. Through its subsidiaries, it is also a major utility provider, with the power segment contributing 91 per cent of its total business. The company manages electricity distribution in Delhi and operates several power generation plants. Its engineering and construction division handles turnkey infrastructure projects, while the defence business focuses on aerostructures and fighter jet components through global joint ventures.
Recently, the company strengthened its financial position by raising funds via preferential share allotment and acquiring a stake in Utility Powertech Limited. Major public shareholders include Authum Investment & Infrastructure Limited (10.89 per cent), Mathew Cyriac (3.27 per cent), Florintree Insurtech LLP (2.18 per cent), Universal Trustees Pvt Ltd (1.22 per cent), and Ketan Mohanlal Kakrecha (1.14 per cent).
Disclaimer: The article is for informational purposes only and not investment advice.