Reliance Industries Limited declared that the company is prepared to buy a 74% stake in Nauyaan Shipyard, which is owned by GB Goenka’s Welspun Corp. RIL, and will pay Nauyaan Rs. 383 crores for the stake. The arrangement allows RIL to access 138 acres of land situated near Reliance’s petrochemical manufacturing facility in Dahej, Gujarat.
RIL’s Strategic Plans And Contract Structure
RIL said that the 138 acres of land will be used to enhance and amplify its green hydrogen activities. The land will come to hold facilities to store salt for brine preparation and hydrogen electrolyzer manufacturing.
In Jan 2023, the Welspun Corp acquired 165 acres of Land in Dahej that features a 1000-meter waterfront land. As a part of this acquisition, RIL will gain the right to use the foreshore land (the waterfront land) and increase the ease and efficiency of operations.
RIL plans to purchase 100% of Nauyaan’s Tradings, a subsidiary of Welspun Corp, for Rs. 1 Lakh. This structure allows Nauyaan to claim a 74% stake in Nauyaan Shipyard for Rs. 383 crores. This 74% will then be directly owned by Reliance Industries Business Ventures a subsidiary), which is executing this acquisition.
Valuation Of The Shipyard
The total valuation of Nauyaan Shipyard, including debt and equity, amounts to Rs. 644 crore.
RIL Green Hydrogen Initiatives
This acquisition strengthens Reliance’s determination to transition its traditional marine activities to green manufacturing facilities, thereby contributing to achieving sustainability goals on a larger scale.
In 2023, Reliance Industries set up a subsidiary named Reliance New Energy to venture into electrolyzer manufacturing. This move aligns with Reliance’s broader strategy to invest in clean energy and become a prominent player in India’s green hydrogen activities.
