Shipbuilding & heavy fabrication company signs MoUs with Gujarat Maritime Board (GMB) & Sagarmala Finance Corporation Ltd (SMFCL)

Swan Defence and Heavy Industries Limited (SDHI) has entered into two significant Memoranda of Understanding (MoUs) with the Gujarat Maritime Board (GMB) and Sagarmala Finance Corporation Limited (SMFCL). These agreements are designed to significantly boost India's shipbuilding sector. The first MoU with the GMB involves a strategic investment of Rs 4,250 crore aimed at modernising shipyard infrastructure, strengthening domestic supply chains and developing a skilled workforce for the maritime industry.

The collaboration with the GMB will focus on three key projects at SDHI's Pipavav Port shipyard in Gujarat. A substantial Rs 3,500 crore will be used to expand the shipyard's capacity, which includes upgrading slipways, jetties and cranes. Additionally, a 200-acre Maritime Cluster will be developed with a Rs 550 crore investment to serve as a hub for ancillary industries. A state-of-the-art Centre of Excellence (CoE) will also be established with a Rs 200 crore investment to train over 1,000 youth annually in ship design and related technologies.

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Simultaneously, SDHI has partnered with SMFCL, an NBFC focused on the maritime sector, to explore financing options for shipbuilding projects. This second MoU will allow them to jointly evaluate projects like new vessel construction, ship repairs and related infrastructure under the Maritime-focused Equity Fund (MfEF). The partnership aims to align with national initiatives such as the Maritime India Vision 2030 and PM Gati Shakti and will focus on adopting advanced technologies like green fuels and digital shipyards.

Through this partnership, SDHI and SMFCL will conduct feasibility studies on project design and yard capacity, while also developing a comprehensive financing plan with potential co-financiers. The collaboration will also prioritise sustainability and ESG (Environmental, Social and Governance) reporting, ensuring that India's shipbuilding ecosystem meets global standards. These strategic agreements underscore SDHI’s commitment to advancing India's maritime ambition and align with the nation's vision for a new era of growth and global leadership in the sector.

About Swan Defence and Heavy Industries Limited

Swan Defence and Heavy Industries Limited (SDHI), formerly known as Reliance Naval and Engineering Limited, is a leading shipbuilding and heavy fabrication company in India. Strategically located on the west coast of India, the shipyard operates the country’s largest dry dock (662m x 65m) and has an impressive fabrication capacity of 1,44,000 tons per annum – providing an unmatched advantage in fulfilling India’s maritime and industrial ambitions. SDHI is committed to innovation, excellence, safety and sustainability

On Monday, shares of Swan Defence and Heavy Industries Ltd hit a 5 per cent upper circuit to Rs 606.15 per share from its previous closing of Rs 577.30 per share. The stock also made a new 52-week high of Rs 606.15 per share while its 52-week low is Rs 35.99 per share. The company has a market cap of Rs 3,193.33 crore and the stock has given multibagger returns of 1,584.2 per cent from its 52-week low of Rs 35.99 per share.

Disclaimer: The article is for informational purposes only and not investment advice.