PowerPoint Presentation

Deal RationaleSynergiesMacro outlookTarget Company- Pipavav DefenceAcquirer- Reliance InfraPDOE has developed an Integrated shipbuilding , Ship Repair, Defence Ship production and Offshore construction & Heavy Engineering facility at the Port of Pipavav , Gujarat The order book of PDOC has R9,000 Cr and has further bid for orders worth R30,000 Cr from Indias defenceIt has entered into a JV with Mazagaon Docks Ltd to carry out Mazagaons vessels building programThe company is capable of building submarines and aircraft carriers on the back of a technological alliance with Swedish defence company SAABRInfra is one of the fastest growing companies in the infrastructure sector with turnover of Rs 20,299 crore and market capitalization of over Rs11,400 crore RInfra already has presence in areas like power, also has three wholly-owned subsidiaries -- Reliance Defence Systems, Reliance Defence Technologies and Reliance Defence and Aerospace (RDA)It has airfields in Nanded, Latur, Osmanabad, Yavatmal, and Baramati which is on a long term lease to leverage for manufacturing, testing, simulation and training facilities.It is focusing on growth and capacity building through organic and inorganic growth targeted at defence and aerospace sectorIt is also in talks with several international collaborators like Euro copter of France, Kamov of Russia, and Sikorsky of the US, for technological tie-ups

RInfra can get access to already set up Infrastructure for the manufacturing of naval vessels and submarinesPipavav already has a big order book but cash flows was an issue which can be resolved by Reliance backingAvailability of entrepreneurial talent, Support from DRDO, Government, existing potential in defence all augurs well for the future of Indian defence

Prime Minister has kept arms manufacturing at the heart of Make in India campaignFDI increased to 49% and FIIs up to 24%Under Make in India initiative Russian players to collaborate with Indian private firms to jointly work on defence projectsIndias defence spending will rise to 2.47 trillion Indian rupees ($40.07 billion), up over 12% from previous yearThe navy needs new submarines and stealth ships to counter the Chinese presence in Indian Ocean PM aim to raise domestic arms procurement from 40 to 70 per cent of the total within five years to boost defence sector

XLRI -Deal Box (RELINFRA: PIPAVAVDOC) Presented by: