Reliance Infra shares in focus today, here's why

Shares of Reliance Infrastructure are in focus on Monday after the leading company of Anil Ambani's Reliance Group, set an ambitious goal of generating Rs 3,000 crore from the export of 155 mm ammunition and aggregates by the end of the financial year 2027.

Shares of Reliance Infrastructure ended 5.67% higher at Rs 330.80 on Friday. Market cap of the firm stood at Rs 9,487 crore.

For the current year, the company is projected to export Rs 1,500 crore worth of large caliber ammunition.

So far, Reliance Infrastructure has achieved exports totaling Rs 100 crore in artillery ammunition and aggregates, and it aims to position itself among India's top three defence equipment exporters.

The primary export markets for the company include various nations within the European Union, where there is significant demand for the restocking of artillery ammunition. Experts estimate that the market size for this restocking effort could reach Rs 4,00,000 crore. Reliance has reportedly made significant progress in penetrating the competitive markets of both the European Union and Southeast Asia.

A spokesperson for Reliance Infrastructure confirmed to PTI that exporting ammunition is a major focus for the company as it develops the Dhirubhai Ambani Defence City (DADC) in Ratnagiri, Maharashtra, with an investment of Rs 5,000 crore. The DADC will cover 1,000 acre in the Watad Industrial Area and is set to become the largest greenfield project in India’s defence sector initiated by a private entity. An integrated explosives and ammunition manufacturing facility is in the works for this project.

Recently, Reliance Defence announced a strategic partnership with Düsseldorf-based Rheinmetall AG. This collaboration will involve the supply of explosives and propellants for medium and large caliber ammunition from Reliance to Rheinmetall, along with joint marketing activities for specific products. The partnership aims to expand further based on emerging opportunities.

To facilitate this collaboration, Reliance Defence will build a greenfield manufacturing facility in Ratnagiri, Maharashtra. This new facility is projected to have the capacity to produce up to 200,000 artillery shells annually, along with 10,000 tons of explosives and 2,000 tonnes of propellants. This development is expected to bolster Reliance Defence’s goal of becoming one of the top three defense exporters in the country.