In a significant move aimed at reshaping India’s defence support ecosystem, Reliance Defence Ltd has announced a joint venture with US-based defence contractor Coastal Mechanics Inc. (CMI). This partnership targets India’s expansive ₹20,000 crore market for defence maintenance, repair, overhaul (MRO), and upgrade services—a sector poised for transformation as the Indian military shifts from hardware replacement to lifecycle management.
The new JV, to be headquartered in Mihan, Maharashtra, will cater to the modernization and performance enhancement of key air and land defence platforms. These include over 100 Jaguar and MiG-29 fighter jets, 20 Apache attack helicopters, and legacy artillery systems like the L-70 air defence guns.
The Strategic Shift: From Replacement to Lifecycle Extension
India’s defence policy has steadily moved toward optimizing operational readiness through performance-based logistics (PBL) and lifecycle extensions, rather than full equipment replacements. The JV’s focus aligns perfectly with this vision, offering advanced MRO and modernization solutions at a domestic level—critical for ensuring readiness while reducing reliance on foreign OEMs.
The Bigger Picture: Exports and Global Integration
Reliance Defence has also expressed ambitions to become one of India’s top three defence exporters. With Coastal Mechanics being an authorized contractor for the US Department of Defence, the JV is strategically positioned to secure projects not only within India but also across allied markets. The collaboration could open access to NATO-aligned countries seeking cost-effective, high-quality upgrades and support services.
Why This Matters Now
Defence Production in FY25 reached a historic peak of ₹1.46 trillion
India’s Defence Exports hit a record ₹24,000 crore
Rising geopolitical tensions are triggering a global spike in military spending
According to market analysts, India’s defence sector is entering a multi-year growth phase. With initiatives like Operation Sindoor highlighting systemic gaps, there’s a renewed push for inventory build-up and modernization. Analysts suggest that both domestic and global dynamics are aligning to position India as a cost-efficient, export-ready defence manufacturing hub.
“This is a transformative opportunity. India has the potential to not only service its own armed forces but also become a key player in the global defence supply chain,” said a senior equity strategist at Ventura Securities.
