Reliance Defence Joins Forces with US Partner to Unlock India’s ₹20,000 Cr Defence Maintenance Market.

Reliance Defence and US-Based Coastal Mechanics Join Forces to Transform India’s ₹20,000 Crore Defence MRO Sector

In a major step toward self-reliance in defence manufacturing and servicing, Anil Ambani-led Reliance Defence, a subsidiary of Reliance Infrastructure, has announced a strategic partnership with US-based defence contractor Coastal Mechanics. The collaboration is aimed at upgrading and maintaining more than 200 aircraft and helicopters currently in service with India’s armed forces, and will establish a joint venture at MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur), Maharashtra. This marks a significant push to scale India’s Maintenance, Repair, and Overhaul (MRO) ecosystem under the national missions of ‘Make in India’ and ‘Aatmanirbhar Bharat’.

Strengthening India’s Defence MRO Capabilities

Through this high-impact collaboration, Reliance Defence and Coastal Mechanics will provide end-to-end MRO solutions, including lifecycle upgrades and performance-based logistics, for a wide array of ageing and legacy platforms in India’s defence inventory. This includes:

• Over 100 Jaguar fighter jets

• More than 100 MiG-29 aircraft

• Apache attack helicopters

• L-70 air defence guns

• Additional ground and aerial defence systems

Rather than replacing ageing equipment, the partnership focuses on enhancing the operational life and performance of critical systems already in use, addressing a major need within India’s current military strategy. This aligns with the Indian Armed Forces’ shift toward cost-effective modernization, especially in the face of rising regional threats and a rapidly changing global defence environment.

MIHAN-Based Joint Venture with Global Reach

As part of the agreement, the two companies will set up a dedicated Joint Venture (JV) facility at MIHAN, positioning it as a central hub for both domestic and international defence MRO operations. The location will serve as a strategic node to provide services not just for Indian defence forces but also to foreign governments and OEMs seeking high-quality, cost-effective support solutions. The American partner, Coastal Mechanics, brings decades of experience in the US defence sector. As an approved vendor to the US Department of Defense (DoD), the company offers a strong technological edge, with expertise in:

• Armament systems

• Precision spare parts manufacturing

• Reverse engineering of critical systems

• Access to sensitive technical data for defence platforms

This blend of American technical capability and Indian manufacturing scale is expected to create a globally competitive defence servicing entity, rooted in Indian soil. A Broader Push in Global Defence Trade. This is not Reliance Defence’s only recent step into the international arena. On June 25, the company secured a ₹600 crore export order from German defence giant Rheinmetall Waffe Munition GmbH. The deal, which involves high-tech ammunition systems, is among the largest export contracts won by any private Indian defence company to date. Adding to its global ambitions, Reliance Defence has also signed a strategic cooperation agreement with Germany’s Diehl Defence. The partnership will localize the production of Vulcano 155 mm precision-guided artillery munitions in India, another move reinforcing the twin goals of indigenization and export-led growth. A greenfield manufacturing facility is being established in Watad Industrial Area, within the Dhirubhai Ambani Defence City, located in Ratnagiri, Maharashtra, to support this endeavour.

These recent deals position Reliance Defence as a growing leader in India’s private defence manufacturing ecosystem, with the potential to become one of the country’s top three defence exporters in the years to come. 

Reliance Group Sees Market Rebound and Financial Strengthening

Backed by these strategic defence initiatives and a more robust balance sheet, Reliance Group companies have experienced a strong market resurgence. The share price of Reliance Infrastructure alone has seen a 117% increase over the past year, reflecting investor confidence in the group’s evolving strategy and expansion into high-growth sectors.

The group’s financials also indicate a complete debt-free status for both Reliance Infrastructure and Reliance Power, a noteworthy turnaround. Combined, these flagship entities report:

• Net worth: ₹33,000 crore

• Annual turnover: ₹33,000 crore

• Market capitalization: ₹45,000 crore

• Shareholders: Over 4 million

This financial health not only strengthens the group’s credibility in defence manufacturing but also enhances its ability to invest in next-gen capabilities, both in India and abroad.