Mumbai: Engineering firm Punj Lloyd today said it will acquire 25.1% stake in Pipavav Shipyard, a Sea King Infrastructure (SKIL) promoted company, for Rs 403 crore to boost its offshore business.
The company has signed a Memorandum of Understanding (MoU) with Pipavav Shipyard is subject to necessary approvals, Punj Lloyd said in a communique to the Bombay Stock Exchange (BSE).
This is a strategic investment by the company to support the growth of its business in the offshore sector, it said.
Pipavav Shipyard would provide Punj Lloyd access to facilities for platforms, rigs, jackets etc. to exploit the opportunities in this sector, the company added. The facility at Pipavav Shipyard can also be used for fabrication of vessels for petrochemicals and refineries.
Through this association, the company expects to gain from increasing demand for offshore facilities in India and abroad. Growth in the shipyard industry is expected to be over 30% per annum in the next few years, Punj Lloyd said.
The company is currently executing the Heera Field Redevelopment project for state-run Oil and Natural Gas Corporation.