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January 19, 2016

R-Infra announces takeover of Pipavav Defence



Reliance Infrastructure (R-Infra) on Monday announced the takeover of the management and control of Pipavav Defence & Offshore Engineering Co (PDOC). It would hold 36.5 per cent of the equity capital of PDOC.

Anil D Ambani has taken over as chairman of PDOC.

R-Infra, along with defence special purpose vehicles, are the new promoters of PDOC. The company will be renamed Reliance Defence and Engineering. This is the largest acquisition in the defence sector in India. The sector is likely to attract orders of Rs 1.2 lakh crore ($20 billion) in the next five years, said the company. Vice-admiral (retired) H S Malhi has been appointed whole-time director and chief executive of the company. He has 36 years of experience in the Indian Navy and was earlier chairman and managing director of Mazagon Dock.
PDOC has also appointed air chief marshal (retired) Fali Homi Major and Lt general (retired) Syed Ata Hasnain as independent directors.

The Government of India has identified ship building as a priority sector to support the critical need to meet the requirements of the Indian Navy as well as that of commercial ships. The expected naval capital outlay in ship-building for the next 10 years is Rs 2.25 lakh crore, of which the private sector is expected to grab at least 50 per cent amounting to Rs 1,12,500 crore, the company said.

PDOC is participating in various programmes in the field of new ship-building and maintenance, repair and overhaul worth Rs 1.8 lakh crore.

The company is the first private-sector firm in India to obtain the licence and contract to build warships. The facility houses the only modular shipbuilding facility with a capacity to build fully fabricated and outfitted blocks. The fabrication facility is spread over 2.1 million sq ft. The shipyard has a pre-erection berth of 980 metres length and 40 metres width, and two Goliath cranes with combined lifting capacity of 1,200 tonnes, besides outfitting berth length of 780 metres.

Reliance Defence is a wholly-owned subsidiary of Reliance Infrastructure with industrial licences for the full spectrum of military platforms


businessstandard

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