India’s Anil Ambani Group company Reliance Defence Ammunition (RDL) has entered a 10-year strategic partnership with Serbia’s state-owned Yugoimport SDPR.

According to Indian media, the deal is worth EUR 2.7 billion and concerns manufacturing of ammunition in India, “and targeting business opportunities.”

According to the PTI agency, the company made the announcement on Tuesday “a day after Ambani, chairman of Reliance Group, met with Serbian President Aleksandar Vucic.” Serbia’s defense minister and SDPR’s CEO were also present at the meeting, according to the report.

A statement issued by the Indian company said there is also an option for exporting ammunition, while the proposal envisages “transfer of technology by the original equipment manufacturers (OEMs) and indigenous manufacturing in India.”

SDPR, a Serbian defense industry leader, has offered “a fully compliant technical solution to meet the Make in India requirements of the Indian government,” the statement said, adding that RDL proposed to set up a greenfield facility for the production of ammunition.

“Reliance Defence Ammunition will also undertake joint development of next generation ammunition to meet the future requirements of the Indian armed forces,” the company said.

India currently imports nearly 50 percent of its ammunition requirements by value term, with an annual spending of more than EUR 1.4 billion, PTI reported.