Mazagaon Dock, Pipavav ink JV to build warships

Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) today said it will form a joint venture company with state-run Mazagaon Dock (MDL) for building warships for the Indian Navy.

"The Board unanimously approved setting up of the joint venture company with MDL to be named as 'Mazagon Dock Pipavav Ltd'," it said in a filing to the Bombay Stock Exchange.

The PSU has selected it as the joint venture partner for building warships for the Navy, it added.

It is for the first time post independence that a private sector company has been selected by Defence Ministry- controlled PSU to build warships together, the filing said.

"The Board has recognised this as the 'Golden Day' in the corporate history of the company so far as the proposed partnership is concerned... Board further recognised that this will be a game changer and will help the company to scale new heights," the filing said.

The shares of the company were up 10.46% at Rs 90.30 apiece on the BSE at 1510 hrs.

Pipavav has been on expansion spree following government clearance in March for building warships, submarines among others for the Navy. Recently, it had got orders worth Rs 2,975 crore to design and construct five naval offshore petrol vessels (NOPVs) from the Navy.

The company has also roped in foreign partners like US-based Northrop Grumann and UK-based Babcock Group to increase its presence in defence segment.

In December, the company had signed a protocol with Russian government arm Rosoboron Export for defence co-operation with foreign governments.

According to the company, it is the only shipyard in the private sector with modular construction facilities and a huge dry dock to receive the government licence.