Pipavav Defence & Mazagon Dock in a JV for submarines, warships

AHMEDABAD: Gujarat-based shipbuilder Pipavav Defence and Offshore Engineering Company Ltd will be partnering with Mazagon Dock Ltd to build warships for the Indian Navy. This will be first time since Independence that a private sector company has been selected by a firm controlled by the Ministry of Defence to jointly build warships.

The company's board on Monday approved the setting up of a joint-venture company --- Mazagon Dock Pipavav Ltd' for this purpose, the company said in a filing on the Bombay Stock Exchange.

The company has described the development as a "game-changer" as it will help the company scale new heights.

The firm already has Rs 3,000 crore worth of orders to build naval warships for the Indian navy. It is also in the process of building one of the biggest dry docks in the world which will become a significant asset for the company's warship building programme.

Integrated ship-building facility Pipavav Shipyard had last year signed an agreement with SAAB Dynamics AB, part of Sweden's Wallenberg Group, to tap opportunities in India's defence segment.

Earlier in June this year, Pipavav Shipyard Limited (PSL) changed its name from PSL to Pipavav Defence and Offshore Engineering Company Ltd. This was done as the company intended to become an intergrated defence, oil and gas sector company.

The company is also in the process of bidding for two significant contracts for the Indian Army.