Reliance Infrastructure rallies over 4% as Group eyes defence manufacturing

NEW DELHI: Reliance Infrastructure Ltd rallied as much as 4.5 per cent in trade after the Reliance Group, headed by billionaire Anil Ambani, said it is foraying into the defence manufacturing sector, joining the likes of Reliance Industries, the Tata Group, L&T and Mahindra Group to tap into what could be a $100-billion market in 10 years.

At 09:50 a.m.; Reliance Infrastructure was trading 3.9 per cent higher at Rs 439.90. It hit a low of Rs 425.65 and a high of Rs 442.25 in trade today.

The group, which has interests from telecom to infrastructure and financial services to power, has set up Reliance Defence and Aerospace (RDA) as a wholly owned unit of Reliance Infrastructure Ltd, and named Rajesh Dhingra, a former managing director of Lockheed Martin India, as its head, ET reported.

To start with, RDA will bid for contracts to make helicopters for the Armed Forces, the Reliance Group said. Currently, India spends around $40 billion annually on defence, 40%, or around $16 billion, of which is spent on buying new equipment and products.

"The 'Make in India' initiative of the government provides a perfect landscape for setting up of a comprehensive defence industrial base in the country," Reliance Group Chairman Anil Ambani said.

He added that the group's aim is to bring in world-class technologies to the country as well as improve local skill sets, cut down on import of defence products and create jobs.