MUMBAI: Mukesh Ambani-led Reliance Industries is set to acquire 74% of Nauyaan Shipyard from Welspun Corp, owned by B K Goenka, for Rs 383 crore, gaining access to 138 acres of leasehold land in Dahej, Gujarat. This land is located near Reliance’s petrochemical manufacturing facility.
In Jan 2023, Welspun had purchased 165 acres in Dahej, along with 1,000 metres of waterfront and old ships from the insolvent ABG Shipyard for Rs 659 crore. Reliance intends to utilise the 138-acre plot to build facilities for salt storage, brine preparation, and hydrogen electrolyser manufacturing, advancing its green hydrogen initiatives. The company will also receive rights to use foreshore land, it said on Friday.
The transaction structure involves Reliance initially purchasing 100% of Nauyaan Tradings, which was established on March 3 this year, from Welspun Tradings (a wholly-owned subsidiary of Welspun Corp) for Rs 1 lakh.
The acquisition will be executed through Reliance Strategic Business Ventures, a wholly-owned subsidiary. Subsequently, Nauyaan Tradings will acquire 74% of Nauyaan Shipyard from Welspun Corp for Rs 383 crore.
The total valuation of Nauyaan Shipyard, including debt and equity, stands at Rs 644 crore. Reliance’s plans for the Nauyaan land indicate a transition from the historical maritime activities towards green manufacturing facilities. In 2023, the company established Reliance New Energy to enter the electrolyser sector, with plans to establish facilities having an initial capacity of 1 GW.