Reliance Ups Stake In Nuayaan Shipyard, Strategic Buy From Welspun Corp

Key Points:

- Nuayaan Trading acquires 9.9 percent stake in Nuayaan Shipyard for Rs 54.7 crore.

- RIL’s total holding in Nuayaan Shipyard now stands at 93.9 percent.

- 138-acre Dahej shipyard will support green energy and defence manufacturing.

Mumbai: Reliance Industries Limited (RIL), through its subsidiary Nuayaan Trading, has acquired an additional 9.9 percent stake in Nuayaan Shipyard for Rs 54.70 crore from Welspun Corp. This transaction raises Reliance Group’s overall shareholding in Nuayaan Shipyard to 93.9 percent, up from the previous 84 percent.

The development was disclosed in an exchange filing, confirming that the purchase aligns with RIL’s broader strategy to expand its capabilities in shipbuilding, heavy fabrication, and green energy infrastructure.

Breakdown of the Deal

Earlier this year, in March, Reliance Industries had made initial strategic moves to acquire Nuayaan entities. Its wholly owned subsidiary, Reliance Strategic Business Ventures Limited (RSBVL), acquired:

- 100 percent stake in Nuayaan Trading for a nominal Rs 1 lakh

- 74 percent stake in Nuayaan Shipyard for Rs 382.73 crore

The latest Rs 54.7 crore investment in Nuayaan Shipyard, bought from Welspun Corp, adds a further 9.9 percent to RIL's shareholding, solidifying its control over the entity.

Strategic Importance of Nuayaan Shipyard

Incorporated in July 2021, Nuayaan Shipyard has an enterprise value of Rs 643 crore and operates out of a 138-acre leased land parcel in Dahej, Gujarat. This location is critical as it lies adjacent to RIL’s existing manufacturing infrastructure, enabling seamless integration of operations.

The asset is seen as pivotal to RIL’s long-term goals in industrial manufacturing and defence. It will support projects such as:

- Hydrogen electrolyser manufacturing

- Brine preparation and storage

- Heavy engineering and fabrication

Defence and Manufacturing Ambitions

Reliance has recently rebranded its naval engineering arm, previously known as Reliance Naval and Engineering Ltd, to Swan Defence and Heavy Industries. This rebranding signifies RIL’s ambition to emerge as a top-five player in defence and heavy fabrication sectors.

The Nuayaan acquisition complements this transformation and underlines Reliance’s commitment to building strategic manufacturing capabilities.