Reliance Industries to Acquire 74% Stake in Nauyaan Shipyard

Expanding Green Hydrogen Initiatives

Mukesh Ambani’s Reliance Industries is set to buy a 74% stake in Nauyaan Shipyard, owned by B K Goenka’s Welspun Corp, for ₹383 crore. This acquisition will grant Reliance access to 138 acres of leasehold land in Dahej, Gujarat, near its petrochemical manufacturing facility.

Transaction Details

• Welspun purchased 165 acres in Dahej, including 1,000 meters of waterfront and old ships, from ABG Shipyard for ₹659 crore in January 2023.
• Reliance plans to build facilities for salt storage, brine preparation, and hydrogen electrolyser manufacturing on the 138-acre plot.
• The company will also gain rights to use foreshore land.
• The transaction involves Reliance initially buying 100% of Nauyaan Tradings from Welspun Tradings for ₹1 lakh.
• Nauyaan Tradings will then acquire 74% of Nauyaan Shipyard from Welspun Corp for ₹383 crore.
• The total valuation of Nauyaan Shipyard, including debt and equity, stands at ₹644 crore.

Reliance’s Green Manufacturing Facilities

Reliance’s plans for the Nauyaan land indicate a shift from historical maritime activities towards green manufacturing facilities. In 2023, the company established Reliance New Energy to enter the electrolyser sector, with plans to set up facilities with an initial capacity of 1 GW.