Reliance Naval and Engineering Limited-RNAVAL History, Company Profile & Products

Written by Rayden Sam Posted on 2024-01-30

Reliance defence & Engineering Ltd called rnaval established in 1997 by Nikhil prataprai Gandhi, Bhavesh prataprai Gandhi, is India’s first private firm to get shipbuilding licence.

Reliance Naval and Engineering Limited: Reliance Naval and Engineering Limited (R-Naval), originally Reliance Defence & Engineering Limited and Pipavav Shipyard Limited and Pipavav Defence & Offshore Engineering Business Limited, is an Indian shipbuilding and heavy industrial business headquartered in Mumbai.

The shipyard is located in Gujarat near Pipavav, 90 kilometres south of Amreli, 15 kilometres south of Rajula, and 140 kilometres southwest of Bhavnagar. R-Naval is India’s first private firm to be granted a shipbuilding licence and contract.

Reliance Naval and Engineering Limited is in the Corporate Insolvency Resolution Process under the rules of the Insolvency and Bankruptcy Code as of January 15, 2020.

Mr Sudip Bhattacharya, a Resolution Professional appointed by the NCLT Ahmadabad bench in an order dated 5 May 2020, is in control of the organization’s affairs, activities, and assets.

RNAVALHistory

Pipavav Shipyard was founded in 1997 in Pipavav, Gujarat, as a wholly-owned subsidiary of SKIL Infrastructure. The company was spun off and incorporated as Pipavav Shipyard Limited in 2005, with backing from key Indian financial institutions. In 2007, Pipavav Shipyard Limited secured additional funding from a variety of private sector partners. In 2009, the company went public with listings on the BSE and NSE.

Pipavav Shipyard is the first corporate shipyard to have permission to construct warships and other boats for the Indian Navy, albeit the first licence restricts this to no more than five ships per year.

The company successfully conducted debt restructuring on March 26, 2015, by raising additional debt of INR 5,500 crores, resulting in a total debt line of over INR 12,000 crores (about $2 billion). The Company’s market capitalization ranges between $700 million to $900 million, and its enterprise value is between $2.7 billion and $2.9 billion.

RNAVAL-Facilities

Pipavav Shipyard spans 500 acres (2.0 km2). It has 720 metres of private beach access. Its dry dock is 640m long and 65m wide, and it can accommodate boats with DWTs of up to 400,000 tonnes. To service this dry dock, two cranes with a combined span of 140 metres and a height of 85 metres, capable of lifting up to a 1,200-ton block, and two level-luffing cranes are installed.

A 300-meter-long dock with berthing capacity on both sides, adequate draught, and a Level Luffing crane is required to enable afloat ship fit-out and commissioning, including afloat repairs.

Furthermore, the dry dock’s entrance is outfitted with a 100-meter extension track for the Goliath cranes, enabling for direct dumping of heavy gear and equipment weighing up to 1200 Tons from ships and heavy lift barges.

RNAVAL-Products

1. Shipbuilding includes the construction of bulk carriers, platform supply vessels, barges, and naval ships.

2. The second portion of Offshore and Engineering focuses on jack-up rigs.

3. Heavy Construction: inflated containers

4. Tools: Gantry cranes

5. Repairs and conversions include merchant vessels, naval ships, oil platforms, and the conversion of mobile offshore drilling units to mobile offshore production platforms and vice versa.

RNAVAL-Achievement and orders

From 2011 to January 2015, Pipavav Shipyard delivered six new Panamax ships measuring 225 metres in length, five new offshore supply vessels measuring 59 metres in length, and two new barges.

This shipyard has repaired and supplied six Jackup rigs ranging from 6,000 to 12,000 gross tonnes, one Pipe Laying and Heavy Lifting Accommodation Barge, one Offshore Supply Vessel, and one Coast Guard Ship.

PSL was granted a 26 billion ($330 million) contract in June 2010 to construct five offshore patrol vessels for the Indian Navy.

In July 2015, a ‘Make in India’ naval frigate order was awarded to Pipavav shipyard. The order value exceeds $3 billion USD. This order has been described as the largest-ever private sector warship construction initiative.

RNAVAL-Joint ventures

On September 12, 2011, it was revealed that Pipavav Shipyard and Mazagon Dock Limited had formed a joint venture to construct warships and submarines utilising Pipavav’s capabilities.

The agreement will alleviate the backlog of orders at the Mazagon shipyard and provide Pipavav with a much-needed boost in defence construction. In February of 2014, Pipavav and Atlas Elektronik formed a joint venture to produce HeavyWeight Torpedoes.

Key Points:

Reliance Naval and Engineering Limited (R-Naval), originally Reliance Defence & Engineering Limited and Pipavav Shipyard Limited and Pipavav Defence & Offshore Engineering Business Limited, is an Indian shipbuilding and heavy industrial business headquartered in Mumbai.
PSL was granted a 26 billion ($330 million) contract in June 2010 to construct five offshore patrol vessels for the Indian Navy.
Limited had formed a joint venture to construct warships and submarines utilising Pipavav’s capabilities.