Reliance Infra to pick up 25% stake in Pipavav Defence

Discussion in 'Defence & Strategic Issues' started by cobra commando, Mar 4, 2015.

  1. cobra commando

    cobra commando Tharki regiment Veteran Member Senior Member

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    Anil Ambani’s Reliance Defence Systems along with Reliance Infrastructure is all set to make a big bang entry into the defence business by acquiring up to 25% stake in Pipavav Defence – one of India’s private sector shipyards based in Gujarat. The Anil Ambani company will make an open offer costing around Rs 1,266 crore as the transaction will breach the 25% trigger for an open offer. Reliance Infrastructure will first invest Rs 819 crore to pick up 17.66% stake in the company at a price of Rs 63 from the promoters and then launch an open offer at the price of Rs 66 a share.
    The Anil Ambani group has pipped a number of suitors including the Munjals of the Hero group and M&M to buy the company. The Ambani company will spend an additional Rs 345 crore to buy an additional 7.44% stake in the company, if there is no response in the open offer. Post transaction, the Gandhi family will own 24.6% stake in the company. The promoters own 44.5% stake in the company. Pipavav Defence stock closed at Rs 76.50 on Wednesday. With the acquisition, Reliance Infrastructure joins a growing list of Indian companies which are getting into the defence sector with the Modi Government planning to give more orders to the Indian companies under the Make-in-India policy. The Modi government has also allowed 49% foreign direct investment in defence companies.

    Reliance Infra to pick up 25% stake in Pipavav Defence | Business Standard News
     
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  3. sesha_maruthi27

    sesha_maruthi27 Senior Member Senior Member

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  4. sorcerer

    sorcerer Senior Member Senior Member

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    zis dizcuzion iz already zer
    defenceforumindia.com/forum/economy-infrastructure/66963-reliance-infra-acquires-pipavav-up-rs-2-082-crore.html
     
  5. cobra commando

    cobra commando Tharki regiment Veteran Member Senior Member

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  6. Lions Of Punjab

    Lions Of Punjab Regular Member

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    GOVT SHORTLISTS LARSEN & TOUBRO, PIPAVAV FOR RS 6,000 CR SUBMARINE CONTRACT

    The government has shortlisted Larsen & Toubro (L&T) and Pipavav Defence & Offshore Engineering Company, in which the Anil Ambani group firm Reliance Infrastructure has recently acquired management control, for award of a R6,000-crore contract to build six conventional submarines under its Project 75i.

    According to highly-placed sources, a high-level committee headed by vice-admiral Subhedar, which had inspected both public and private shipyards to shortlist candidates to issue the request for qualification (RFQ) for Project 75i, in its final presentation to the ministry of defence (MoD) last week, selected the two private sector shipyards — L&T’s Katupalli yard and Pipavav unit.

    The tender, the sources said, would be a ‘buy and make (in India)’ one, which implies tie-ups for technology with foreign collaborators with substantial manufacturing in India. Pipavav Shipyard has entered into some agreements recently with some global majors with a view to diversify into the submarine market and also has the capacity to build many boats simultaneously. At a Defence Acquisition Council meeting last year, the MoD was directed to set up a committee to identify shipyards in India capable of building submarines.

    The committee, with representatives from the Navy and MoD, conducted a survey of shipyards along both the coasts, including Garden Reach Ship-Builders, Hindustan Shipyard, Goa Shipyard, L&T, Mazgaon Docks, ABG Shipyard and Pipavav Shipyard.

    According to the government’s decision all six submarines will be built in India on the lines of the predecessor P75 Scorpene production line at MDL, Mumbai. Bids were invited from Indian shipyards to build the six submarines using transferred technology from a foreign partner.

    Project 75i is designed to purchase 6 next generation diesel submarines with Air Independent Propulsion System (AIP) technology for Indian Navy by 2022. While conventional diesel-electric submarines have to surface every few days to get oxygen to recharge their batteries, AIP systems will help the submarines to stay submerged for longer periods. Apart from AIP, the new submarines will have advanced detection range and combat management systems and better sensors for optimum performance. The weapon system would be a mix of torpedoes and missiles.

    Among the potential foreign submarine contenders in the race for Project 75i are French DCNS `Scorpene’, Russia’s Rubin Amur 1650, the German HDW Type 214, Spain’s Navantia S-80 which broke its partnership with DCNS a while ago has been offering the S-80 design with an ethanol based AIP supplied by Abengoa.

    Navantia also has a tie-up with Lockheed Martin for combat management systems and on India, it is known to have been working closely with L&T albeit on surface ship projects. The Swedish Kockums Archer-class is also in the race. Interestingly, DCNS of France, already has a technology tie-up with Pipavav Defence. Sembcorp Marine (Singapore), part of Temasek of the Singapore government and a leading global marine engineering group, has a strategic and equity partnership with Pipavav Defence.

    For Reliance Infrastructure, which will spend Rs 819 crore for an 18% stake in Pipavav Defence and is slated to acquire an additional stake from the latter’s promoters to increase the shareholding to above 25%, winning Project 75i will be crucial step in getting into defence manufacturing, an integral part of Narendra Modi government’s Make in India campaign.

    As per sources, in addition to the leased Russian nuclear-propelled submarine (INS Chakra) and the indigenously built Arihant, India’s navy currently has 13 aging diesel-electric submarines, only half of which are operational at any given time due to refits. Last year, a submarine sank after explosions and a fire while docked in Mumbai.

    The delays in the `Scorpene’ (project 75) at Mazgaon Dock Limited (Mumbai) which was intended to induct the vessels at the rate on one ship per year since 2012 has left the Submarine force well below requisite levels. further, previously planned induction of 05 midget submarines and also the fresh impetus on the strategic submarine program constitute a work-load that is far beyond the capacity of existing public sector shipyards.

    The six new submarines in P-75 I project will outline various critical parameters including the weight and design of the submarine. The Project 75I submarines are expected to be bigger than the 1800-ton Scorpene class being built for P-75 project. The AIP systems will enable greater underwater endurance and land-attack missiles. Besides, they will also incorporate stealth, land-attack capability and other technological advancements.

    While indigenous sources can provide most sub-systems, packing all this together in a hull form that achieves contemporary quietening standards will require foreign collaboration for the selected yards.

    Anil Ambani wants to make Pipavav Defence the biggest defence manufacturer
     
  7. cobra commando

    cobra commando Tharki regiment Veteran Member Senior Member

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    Reliance Infrastructure seeks Russian partner to make submarines, ships at Pipavav Defence

    KOLKATA: Anil Ambani-led Reliance Infrastructure, which recently acquired an 18 per cent stake in Pipavav Defence & Offshore Engineering, is scouting for an international joint venture- cum-technology partner in Russia to locally manufacture nuclear- powered submarines and stealth warships at Pipavav in Gujarat. Pipavav Defence is India'a largest defence shipyard with a permit to manufacture warships. Top Reliance Group executives are in Moscow where they met senior officials in Russia's defence ministry and are also likely to call on Russian defence minister Sergey Shoigu this week to identify a potential Russian JV partner with the requisite technology expertise for manufacturing warships in India, a person aware of the discussions told ET. The JV may involve one of the defence subsidiaries of Reliance Infrastructure, the person cited above said. In February, Reliance Infrastructure had floated three subsidiaries - Reliance Defence Systems, Reliance Defence Technologies and Reliance Defence & Aerospace - to pursue emerging opportunities in the defence sector. This was on the heels of the Cabinet Committee on Security (CCS) approving plans for locally manufacturing six nuclear- powered submarines and seven stealth warships at an investment outlay of a whopping Rs 1 trillion.


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    Reliance Infrastructure seeks Russian partner to make submarines, ships at Pipavav Defence
     

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