RInfra, along with defence SPVs, is the new promoter of Pipavav Defence and Offshore Engineering Co Ltd (PDOC) and the company will be renamed as Reliance Defence and Engineering Ltd.
Reliance Infrastructure Ltd (RInfra) on Monday said it has taken over the management and control of Pipavav Defence and Offshore Engineering Co Ltd (PDOC) with Anil Ambani as its Chairman.
“RInfra takes over the management and control of PDOC and to hold 36.5% of the equity capital of Pipavav Defence & Offshore Engineering Co Ltd. Anil Ambani has taken over as Chairman of PDOC,” RInfra said in a statement.
RInfra, along with defence SPVs, is the new promoter of PDOC and the company will be renamed as Reliance Defence and Engineering Ltd.
“This is the largest acquisition in the defence sector in India and PDOC is uniquely placed to tap growth opportunities in the defence industry under Prime Minister Narendra Modi’s Make In India programme,” the company said.
The defence sector is likely to attract potential orders of Rs 1,20,000 crore ($20 billion) in the next five years, it said. The company said Vice-Admiral (Retd) H S Malhi, with 36 years of service in the Indian Navy and a former chairman and managing director of Mazagon Dock, has been appointed the whole-time Director and Chief Executive Officer.
PDOC has also appointed Defence professionals, including Air Chief Marshal (Retd) Fali Homi Major and Lt Gen (Retd) Syed Ata Hasnain independent directors, it said.
With the third-largest Army, the fourth-largest Air force and the seventh-largest Navy in the world, India is among the top 10 countries in the world in terms of military expenditure and the world’s largest arms importer, the company said.
“India in FY14 spent about $50 billion for military needs. Projected capital acquisitions for the defence sector in the next 10 years is about Rs 15,00,000 crore with a high import dependence (about 70%),” the statement said.
“The government has identified the ship-building industry as a priority sector to support the critical need to meet the requirements of the Indian Navy as well as commercial ships.” The company said with an expected naval capital outlay in ship building for the next 10 years at Rs 2,25,000 crore and conservative share of private sector amounting to Rs 1,12,500 crore, PDOC is participating in various programs.
“PDOC is participating in new ship-building and maintenance, repair and overhaul (MRO) which are in various stages of RFP or RFI of worth more than Rs 1,80,000 crore,” the company said.
PDOC is the first private sector company in India to obtain the licence and contract to build warships. The facility houses the only modular ship-building facility with a capacity to build fully fabricated and outfitted blocks. Reliance Defence Ltd is a wholly-owned subsidiary of Reliance Infrastructure Ltd.
Source: Defense News