Reliance Industries, led by Mukesh Ambani, plans to buy 74% of Nauyaan Shipyard from Welspun Corp, owned by B K Goenka, for Rs 383 crore, giving it access to 138 acres of leasehold land in Dahej, Gujarat. This land is near Reliance's petrochemical manufacturing facility.
Welspun purchased 165 acres in Dahej, 1,000 meters of waterfront, and historic ships from the bankrupt ABG Shipyard for Rs 659 crore in January 2023. Reliance intends to advance its green hydrogen initiatives by using the 138-acre plot to construct facilities for hydrogen electrolyser manufacturing, brine preparation, and salt storage. The company will also be granted rights to use foreshore land, it announced.
Under the terms of the deal, Reliance will first pay Rs 1 lakh to Welspun Tradings, a wholly-owned subsidiary of Welspun Corp, for 100% of Nauyaan Tradings, which was established on March 3 of this year.
The acquisition will be carried out through Reliance Strategic Business Ventures, a wholly owned subsidiary. Nauyaan Tradings will then buy 74% of Nauyaan Shipyard from Welspun Corp for Rs383 crore.
The total valuation of Nauyaan Shipyard, including debt and equity, is Rs 644 crore. Reliance's plans for the Nauyaan land indicate a shift from traditional maritime activities to green manufacturing facilities. In 2023, the company formed Reliance New Energy to enter the electrolyser sector, with plans to build facilities with an initial capacity of 1 GW.
