Rs 10,000 Crore Investment: Reliance-Group Debt-Free Company is Setting Up the Largest Integrated Project for Manufacturing of Explosives, Ammunition and Small Arms
The stock is up by 86 per cent from its 52-week low of Rs 143.70 per share.
Reliance Infrastructure has announced plans to establish a major Integrated project for the Manufacturing of Explosives, Ammunition and Small Arms in Ratnagiri, Maharashtra. This project, to be developed under the Dhirubhai Ambani Defence City (DADC), is expected to require an investment of up to Rs.10,000 Crore over the next decade. The DADC spread across 1000 acres of land in the Watad Industrial Area of Ratnagiri, aims to become India's largest greenfield defence project undertaken by a private sector company.
The project envisions potential partnerships with up to six leading global defence companies. The ammunition range will include small, medium, and large caliber ammunition, as well as terminally guided munitions (TGMs). The small arms portfolio will cater to both civil and military export markets. Reliance Infrastructure already has successful joint ventures in the defence sector, such as Dassault Reliance Aerospace Limited (DRAL) and Thales Reliance Defence Systems (TRDS), which export 100 per cent of their production.
Reliance Infrastructure's wholly owned subsidiaries, Jai Armaments Limited and Reliance Defence Limited, already possess licenses from the Government of India for manufacturing arms and ammunition. The company's decision to invest in this large-scale defence project aligns with its existing expertise in the sector and demonstrates its commitment to contributing to India's defence capabilities
About Reliance Group:
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, annual turnover, and market capitalization, each amounting to Rs 33,000 crore, with a shareholder base exceeding 4 million.
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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 and various airport developments. Reliance Power is a leading power generation company in India with a total installed capacity of 5,340 MW, including the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh—currently the largest integrated thermal power plant in the world.
On Wednesday, shares of Reliance Group infra stock – Reliance Infrastructure Ltd hit a 5 per cent upper circuit to Rs 266.95 per share from its previous closing of Rs 254.25. The stock’s 52-week high is Rs 350.90 and its 52-week low is Rs 143.70.
The company has a market cap of Rs 9,335 crore and reported a mixed set of numbers in its Quarterly Results (Q1FY25) and annual results (FY24). The stock is up by 86 per cent from its 52-week low of Rs 143.70 per share. The promoters of the company own 16.50 per cent, FIIs own 8.38 per cent, DIIs own 1.40 per cent, the Government own 0.02 per cent and the public & others own the rest of the stake i.e., 73.70 per cent as of September 2024.
Disclaimer: The article is for informational purposes only and not investment advice.
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