Reliance Defence and Engineering Ltd

Coordinates: 20°55′20″N 71°29′58″E / 20.922351°N 71.499571°E / 20.922351; 71.499571

Reliance Defence and Engineering Limited
Public company
Traded as BSE: 533107
NSE: PIPAVAVYD
Industry Shipbuilding and Heavy industry
Founded 1997
Founder Nikhil Prataprai Gandhi, Bhavesh Prataprai Gandhi
Headquarters Mumbai, India
Area served
 Worldwide
Key people
 Anil Ambani (Chairman),
H. S. Malhi (CEO)
Services Ships & offshore Platforms, Pressure Vessels Design, construction, repair and conversion
Revenue ₹316.47 crore (US$47 million) (2014)[1]
Increase ₹7.41 crore (US$1.1 million) (2014)
Number of employees
 4000
Website www.reliancedefence.co

Reliance Defence and Engineering Limited (formerly known as Pipavav Shipyard Limited & Pipavav Defence and Offshore Engineering Company Limited) is the India's largest shipbuilding and Heavy industry company headquartered in Mumbai, Maharashtra. The shipyard is located in west coast of India, Saurashtra, Gujarat, at a distance of 90 km South of Amreli, 15 km South of Rajula and 140 km South West of Bhavnagar.

History

Pipavav Shipyard was established as a wholly owned subsidiary of SKIL Infrastructure in 1997 at Pipavav, Gujarat.[2] In 2005, with funding from major Indian financial institutions, the company was spun off and registered as Pipavav Shipyard Limited. Pipavav Shipyard Limited raised additional financing from a number of private equity investors in 2007. The company went public in 2009 with listings on the Bombay Stock Exchange and the National Stock Exchange.

Pipavav Shipyard was the first corporate shipyard to be granted clearance to build warships and other vessels for the Indian Navy, though the initial licence limits this to up to 5 ships per year.

On March 26, 2015, the Company successfully implemented one of the biggest debt restructurings in India. Pipavav raised additional debt of INR 5,500 crore resulting in total debt line in excess of INR 12,000 crore (about USD 2 billion).[3] The Company has a market capitalization ranging between USD 700 - 900 million and total enterprise value of USD 2.7 to 2.9 billion.

17.66 per cent of Pipavav was acquired by Reliance Infra Ltd on 5 March 2015 in a US$130 mln deal.[4] Subsequently, Reliance Infrastructure launched an open offer to acquire additional shares to control 25.1 per cent of the Company. The open offer has been completed and Reliance Infrastructure now holds 36.5% equity in Pipavav and Mr. Anil Ambani has been appointed as the Chairman of the Company.[5]

The company has been renamed as Reliance Defence and Engineering Limited and has received the certificate of name change from the registrar of companies.[6]

Facilities

Pipavav Shipyard is one of the largest and leading shipbuilding company in India, spread over 500 acres (2.0 km2).[7] It has access to over 720 meters of exclusive waterfront.

Its dry dock is 640m length and 65m breadth, It can accommodate ships up to 400,000 tonnes DWT. Two Goliath cranes with a span of 140 meters & height of 85 meters together capable of handling up to 1200 Ton block and two Level Luffing cranes are erected to service this dry dock. To facilitate afloat fit-out and commissioning of ships, including afloat repairs, a 300–meter long quay, with the capacity for berthing on both sides, has been constructed with adequate draft and serviced by a Level Luffing crane. The entrance of the dry dock also has a 100-meter extension track for the Goliath cranes for unloading heavy machinery and equipment weighing up to 1200 Tons directly from ships and heavy lift barges.[8]

Approximately 4.5 kilometres away from the dry-dock, and located on 95 hectares of land in a Special Economic Zone approved by the Government of India, a state of the art block-making facility has been set up for fabrication of hull blocks. By having located the workshops and fabrication facilities in a SEZ away from the dockyard site, PSL has the dual advantage of having been able to reserve the maximum area of water frontage available at the shipyard site for ship assembly, offshore fabrication and ship repair activities whilst carrying out its fabrication and other similar activities through a highly tax-efficient SEZ unit. The blocks manufactured at this site are pre-outfitted to the maximum extent. This is done in the ideal working conditions offered by covered fabrication shops. When ready, the blocks are moved to the dock-side for pre-erection of mega/giga-blocks followed by lowering them on the dock floor for final assembly and vessel launching.

Products

Achievements and orders

From 2011, till January 2015 Pipavav Shipyard delivered 6 new build Panamax Ship of length 225 metres, 5 new build Offshore supply vessels of length 59 metres and 2 new build Barges. This shipyard has repaired and delvered 6 Jackup rigs of Gross Tonnage in between the range of 6000 to 12000 Tonnes, 1 Pipe Laying and Heavy lifting Accommodation Barge, 1 Offshore supply vessel and 1 Coast Guard Ship.

In June 2010, PSL was awarded a ₹26 billion (US$390 million) contract to build five offshore patrol vessels for the Indian Navy.[9]

In July 2015, Pipavav shipyard was chosen for a 'Make in India' naval frigate order. The order value exceeds more than USD 3 bn. This order is being termed as the private sector's biggest-ever warship-building project.[10]

Joint Venture

On 12 September 2011, it was announced that Pipavav Shipyard entered a joint venture with Mazagon Dock Limited to collaborately build warships and submarines using Pipavav's facilities. The deal will free up the congested order book of Mazagon shipyard and will give Pipavav a much needed boost in defence shipbuilding.[11] In February, 2014, Pipavav announced a joint venture with Atlas Elektronik to build Heavy Weight Torpedoes.[11]

See also

References

  1. ↑ "Financial Results, Q1 2014–15" (PDF). pipavav defence and offshore engineering company limited. Retrieved 14 August 2014.
  2. ↑ "Punj Lloyd to exit Pipavav Shipyard". The Economic Times. 27 March 2010. Retrieved 3 February 2011.
  3. ↑ http://www.livemint.com/Companies/7uXxyeWSGtCRTqklLuAraM/Pipavav-Defence-set-to-restructure-Rs7600-crore-debt-under.html
  4. ↑ "Reliance Infra to take control of Pipavav Defence in $130 mln deal". Reuters. 4 March 2015. Retrieved 5 March 2015.
  5. ↑ "Anil Ambani chairman of Pipavav Defence after RInfra takes control".
  6. ↑ "Pipavav Defence is now Reliance Defence and Engineering".
  7. ↑ "Overview". Pipavav Shipyard Limited. Retrieved 3 February 2011.
  8. ↑ "In the News". Pipavav Shipyard Limited. 20 September 2007. Retrieved 11 September 2011.
  9. ↑ "Pipavav bags Rs 2,600-cr Navy deal". The Economic Times. 7 June 2010. Retrieved 11 September 2011.
  10. ↑ http://economictimes.indiatimes.com/news/defence/biggest-warship-project-russia-selects-anil-ambanis-pipavav-to-make-frigates-for-indian-navy/articleshow/48091024.cms
  11. 1 2 "JV Pipavav Mazagon". NDTV India. 11 September 2011. Retrieved 13 September 2011.
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