Adanis to build ships

After gaining a foothold in the port business, the Adani Group has decided to enter into shipbuilding and plans to announce a joint venture agreement for shipbuilding soon. Confirming the development, Adani Group chairman Gautam Adani said the group will invest around Rs 1,500 crore in the new business and that it was in talks with European, Japanese and Korean shipbuilders for a joint venture.

He said that though plans were still at the drawing board stage, an announcement on the joint venture could be expected within the next two to three months. Adani added that apart from shipbuilding, the new venture would be involved in the repair and maintenance of vessels. Shipping industry officials said the group had enough financial muscle for the new business. Besides, they said, the Mundra port, developed by the Adani Group, had ample space for shipbuilding berths.

The venture into the shipbuilding industry marks a forward integration from the ports business for the Adani group. The Mundra port already has 5,000 acres of land available for infrastructure development.