India's Pipavav Defence and Offshore Engineering (formerly Pipavav Shipyard Ltd.) is to build warships for the Indian Navy. The news comes less than a month after the shipbuilder announced plans to convert its second wet basin into a dry dock in order to enhance its defense market capabilities (see earlier story).
Today the company announced that state-owned shipbuilder Mazagon Dock Ltd., which is operated by the Ministry of Defense, has selected Pipavav as as its joint venture partnerfor building warships for the Indian Navy.
The Pipavav Board has unanimously approved the setting up of a joint-venture company with Mazagon Dock to be named "Mazagon Dock Pipavav Limited."
"This is the first time post independence that a private sector company has been selected by a company controlled by the Ministry of Defense to build warships together, which will result in speeding up the delivery of warships to the Indian Navy," Pipavav said in a stock exchange announcement.
"The Board has recognized this as the 'Golden Day' in the corporate history of the company so far as the proposed partnership is concerned between the largest defense shipyard viz. MDL and Pipavav Defence and Offshore Engineering Company Limited having the largest defense focused infrastructure. Board further recognized that this will be a game changer and will help the company to scale new heights," continued the statement.
September 12, 2011