The three facilities will be developed at Raichak, Shalimar and Kidderpore Docks, with investments of ₹2,500 crore, ₹100 crore and ₹70 crore, respectively, according to the company’s exchange filing dated August 24.
The expansion is aimed at strengthening GRSE’s indigenous shipbuilding capabilities and supporting future requirements of India’s maritime forces and other defence and maritime customers.
₹2,500 crore Raichak facility to be largest expansion
The Raichak facility will receive the bulk of the investment, with GRSE planning to spend more than ₹2,500 crore on the 32-acre riverside property.The facility has a 356-metre waterfront, 96-metre jetty and 8-10 metre draught and will be developed as a shipbuilding hub. It will include a 200-metre dry dock, slipway, launching pad, jetties and block fabrication facilities.
The infrastructure will enable GRSE to construct warships of up to 200 metres as well as commercial vessels of up to 60,000 deadweight tonnes (DWT).
Shalimar, Kidderpore facilities to support smaller vessels
GRSE will invest nearly ₹100 crore to rejuvenate its 4-acre Timber Pond facility at Shalimar. The facility will cater to medium-sized shipbuilding and repairs and will include the restoration of a 130-metre dry dock and construction of a 120-metre slipway.
Another ₹70 crore will be invested at the Damodar facility at Kidderpore Docks, which comprises an old workshop and a 25-metre waterfront. The facility will be used for medium-sized vessel repairs and the construction of electric ferries and other small craft.
Foundation laid for five expansion projects
The foundation for the three GRSE projects, along with two separate facilities of Yantra India Limited (YIL), was laid on August 23 in the presence of Defence Minister Rajnath Singh and West Bengal Chief Minister Suvendu Adhikari.GRSE said it has signed lease agreements with Syama Prasad Mookerjee Port, Kolkata for two small shipyards on either bank of the Hooghly, as well as the 32-acre Raichak property, as part of the capacity expansion.Through these projects, the company also intends to support the government’s Aatmanirbhar Bharat and Make in India initiatives while creating employment and opportunities for ancillary industries, particularly micro, small and medium enterprises (MSMEs).
GRSE, a Navratna defence public sector undertaking under the Ministry of Defence, said it has built more than 800 platforms, including 118 warships, and has the infrastructure to undertake concurrent construction of up to 28 ships.
June quarter results
GRSE reported a 43.8% year-on-year increase in consolidated net profit to ₹172.8 crore in the June quarter, while revenue from operations rose 38.5% to ₹1,814.6 crore. EBITDA increased 33.3% to ₹149.2 crore, although the EBITDA margin narrowed slightly to 8.2% from 8.5% a year earlier.
The company’s net worth rose to ₹2,799.7 crore as of June-end from ₹2,198.8 crore a year earlier, while its debt-equity ratio remained low at 0.014 times. Total income for the quarter stood at ₹1,914.2 crore, up from ₹1,382.4 crore in the year-ago period.
Shares of Garden Reach Shipbuilders & Engineers were trading 0.46% up at ₹2,613.50 as of 11.18 am, following the capacity expansion announcement. The stock has advanced over 7% so far this year.
