Citing the country’s 90 percent dependence on imports to meet up with defense requirements, Anil Ambani expressed seriousness in contributing for the defense sector.
With the government all set to start working on its plan to introduce the first bullet train in India, Reliance Group chairman Anil Ambani on Tuesday said that its company Reliance Infrastructure, with a major focus towards the defense sector, is planning a rights issue for Reliance Naval and Engineering.
Confirming that the company will be joining hands with the Japanese companies for the over Rs 1 trillion project, Ambani, at the company’s 88th Annual General Meeting (AGM) told shareholders, “Our defence vertical Reliance Naval & Engineering will soon come out with a rights issue which will help promoters to increase stake in the company by 5 percentage points to 36 percent.”
Citing the country’s 90 percent dependence on imports to meet up with defense requirements, the Reliance Group chairman expressed seriousness in contributing for the defense sector, despite intense competition.
“Government is shortly going to award contract for six submarines worth Rs. 50,000 crore. With the acquisition of Pipavav, we are one of the only two companies strategically positioned to participate to build submarines. For the first time, private sector firm in the country will be actually building a submarine,” said Ambani.
Speaking about the requirements to bring in a change of ownership in case of Reliance Naval and Engineering, Ambani asserted that the company has already achieved its 31 percent shareholding. “We have the ability to increase our shareholding to 36 percent, which we will be able to do through this rights issue,” said Ambani.
Anil Ambani said that the Reliance Naval and Engineering will be employing foreign collaborations and will train its employees on defense business with world leaders. Further stating that the company has inked a joint venture with a leading French material and aero-structure Company named Daher, Ambani said, “Under the agreement Daher will be moving all their facilities to India and India will be an exporter to Boeing and Airbus of very sensitive composite parts and materials.” Daher supplies 50 percent of the composite materials to multinational corporations, Boeing and Airbus.
Confirming that RInfra is going to join hands with Japanese companies in the $17 billion project to construct India’s first bullet train which will be connecting Mumbai and Ahmedabad, Ambani said, “We are deeply engaged and involved with a number of Japanese companies through joint ventures for the over Rs. 1 trillion bullet train project and we will participate in this ambitious project.”
Also claiming that RInfra is committed to be leaders in Engineering, procurement and construction, Ambani said, “Rinfra has been short-listed as bidder for the Bandra-Versova Sea Link, the coastal road project in the city, and we also have LoIs for metro orders. Besides, it has also been qualified for the Mumbai-Nagpur Expressway project.”