RIL to acquire 74% of Nauyaan Shipyard in Gujarat

MUMBAI: Reliance Industries, led by Mukesh Ambani, is planning to buy a 74% stake in Nauyaan Shipyard from Welspun Corp. The deal is valued at Rs 383 crore. This acquisition will give Reliance access to 138 acres of land in Dahej, Gujarat. The site is close to Reliance's petrochemical plant. In January 2023, Welspun purchased 165 acres in Dahej, which included waterfront property and old ships. They bought this from the bankrupt ABG Shipyard for Rs 659 crore. Reliance plans to use the new land for storing salt, preparing brine, and making hydrogen electrolyzers. These efforts support Reliance's push into green hydrogen. The acquisition structure begins with Reliance buying Nauyaan Tradings, a company created on March 3, from Welspun Tradings for Rs 1 lakh. After this, Nauyaan Tradings will acquire the 74% stake in Nauyaan Shipyard. The total value of Nauyaan Shipyard, including its debts, is Rs 644 crore. Reliance's investment in this shipyard marks a shift from traditional maritime activities to green manufacturing. In 2023, the company established Reliance New Energy to enter the electrolyzer market, aiming for a production capacity of 1 gigawatt.