Reliance Defence and Engineering Limited (formerly known as Pipavav Shipyard Limited & Pipavav Defence and Offshore Engineering Company Limited) is an Indian shipbuilding and Heavy industry company headquartered in Mumbai.
The shipyard is located in Pipav, Gujarat, at a distance of 90 km South of Amreli, 15 km South of Rajula and 140 km South West of Bhavnagar.
Pipavav Shipyard was established as a wholly owned subsidiary of SKIL Infrastructure in 1997 at Pipavav, Gujarat. In 2005, with funding from major Indian financial institutions, the company was spun off and registered as Pipavav Shipyard Limited. Pipavav Shipyard Limited raised additional financing from a number of private equity investors in 2007. The company went public in 2009 with listings on the BSE and the NSE.
Pipavav Shipyard is the first corporate shipyard to be granted clearance to build warships and other vessels for the Indian Navy, though the initial licence limits this to up to 5 ships per year.
On March 26, 2015, the Company successfully implemented debt restructuring by raising additional debt of INR 5,500 crore resulting in total debt line in excess of INR 12,000 crore (about US$2 billion). The Company has a market capitalization ranging between US$700 – 900 million and total enterprise value of USD 2.7 to 2.9 billion.
17.66 per cent of Pipavav was acquired by Reliance Infra Ltd on 5 March 2015 in a US$130 mln deal. Subsequently, Reliance Infrastructure launched an open offer to acquire additional shares to control 25.1 per cent of the Company. The open offer has been completed and Reliance Infrastructure now holds 36.5% equity in Pipavav and Anil Ambani has been appointed as the Chairman.
The company was renamed to Reliance Defence and Engineering.
From 2011, till January 2015 Pipavav Shipyard delivered 6 new build Panamax Ship of length 225 metres, 5 new build Offshore supply vessels of length 59 metres and 2 new build Barges. This shipyard has repaired and delvered 6 Jackup rigs of Gross Tonnage in between the range of 6000 to 12000 Tonnes, 1 Pipe Laying and Heavy lifting Accommodation Barge, 1 Offshore supply vessel and 1 Coast Guard Ship.
In June 2010, PSL was awarded a ₹26 billion (US$400 million) contract to build five offshore patrol vessels for the Indian Navy.
In July 2015, Pipavav shipyard was chosen for a ‘Make in India’ naval frigate order. The order value exceeds more than USD 3 bn. This order is being termed as the private sector’s biggest-ever warship-building project.
On 13 February 2017, Reliance Defence and Engineering Limited (RDEL) has signed the Master Ship Repair Agreement (MSRA) with the US Navy to maintain the vessels of its Seventh Fleet operating in the region, with the company estimating revenues of about Rs 15,000 crore ($10 billion) over next 3 –5 years.The Seventh Fleet’s area of responsibility includes the Western Pacific and Indian Ocean and at any given time there are roughly 5070 ships and submarines, 140 aircraft and approximately 20,000 sailors under its command. Currently, these vessels visit Singapore or Japan for such works.
On 12 September 2011, it was announced that Pipavav Shipyard entered a joint venture with Mazagon Dock Limited to collaborately build warships and submarines using Pipavav’s facilities. The deal will free up the congested order book of Mazagon shipyard and will give Pipavav a much needed boost in defence shipbuilding. In February, 2014, Pipavav announced a joint venture with Atlas Elektronik to build Heavy Weight Torpedoes.