Reliance Defence, Coastal Mechanics form joint venture for defence MRO

Mumbai, June 30, 2025 — Reliance Infrastructure Ltd (NSE: RELINFRA, BSE: 500390) announced a strategic collaboration between its subsidiary Reliance Defence and US-based Coastal Mechanics Inc., targeting India’s burgeoning ₹20,000 crore defence MRO (Maintenance, Repair, and Overhaul) and upgrade sector.

Strategic Scope: Supporting Over 200 Fighter Jets and Helicopters

The agreement outlines a wide-ranging partnership to deliver MRO and upgrade services for:

The agreement establishes a comprehensive partnership to provide maintenance, repair, and overhaul (MRO) as well as upgrade services across multiple defence platforms. It covers over 100 Jaguar and MiG-29 fighter aircraft, the entire fleet of Apache attack helicopters, and select legacy systems, including L-70 air defence guns.  The alliance aims to offer lifecycle support, including performance-based logistics, targeting both Indian and export markets.

Key Initiative: MIHAN-Based Joint Venture

A Joint Venture (JV) will be set up at MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur), Maharashtra, to localise MRO operations and reduce India’s dependence on imported defence servicing infrastructure.

Coastal Mechanics’ Credentials

Coastal Mechanics, established in 1975, is a long-time approved US Department of Defense (DoD) contractor. The company:

• Supplies critical parts to the US Army and Air Force
• Holds a DD2345 agreement giving access to proprietary US military technical data
• Operates in-house mechanical, electronic, and component repair facilities
• Has delivered thousands of contracts related to obsolescence and spares for multiple US weapon platforms

Strategic Rationale: Aatmanirbhar Bharat & Defence Exports

This partnership aligns with India’s defence indigenisation agenda under the ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiatives. Reliance Defence, aspiring to be among India’s top three defence exporters, views this as a cornerstone in expanding global competitiveness.

Group Financial Strength

Reliance Group, through its core firms Reliance Infrastructure and Reliance Power, reports:

Both companies are debt-free with no outstanding bank or institutional loans, underscoring strong financial health.

Reliance Infrastructure Stock Performance

Reliance Infrastructure Limited shares closed at ₹410, representing a 0.74% decline as of June 30, 2025. Reliance Infrastructure shares have gained 117% in the last year, 28% in the year-to-date, and 14% in the previous month.

About Reliance Infrastructure Limited

Reliance Infrastructure Limited, listed on NSE and BSE, is active in energy distribution (notably in Delhi), power generation, infrastructure development (e.g., Mumbai Metro), and defence manufacturing.

About Coastal Mechanics

Coastal Mechanics, a four-decade-old US defence contractor, brings mission-critical manufacturing and reverse-engineering capabilities to India’s defence ecosystem.

This strategic tie-up is poised to accelerate defence self-reliance, modernisation, and global export capability for India’s aerospace and defence sector.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/4f252815-ee30-40d1-a9f3-57567090bf53.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations