Pipavav enters aviation sector with Airbus

Mumbai: Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) today announced its foray into the aviation sector by signing a pact with Airbus to set up an aircraft maintenance facility in the country through a joint venture.

As per the MoU, European Aeronautic, Defence and Space Co, (EADS), the makers of Airbus, will pick up 26 per cent equity in the project and have the option to increase it to 49 per cent, Pipavav said in a regulatory filing.

The filing added that 51 per cent stake in the proposed JV will be held by Pipavav, while its promoters SKIL Infra will also hold some stake.

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The JV to develop maintenance, repair and overhaul (MRO) facilities and associated infrastructure is likely to cost $ 100 million in the first phase and will be used for civilian and military applications, the filing stated.

“This will be a one of its kind joint venture being set up in India with equity participation from EADS, France (Airbus) which is the global leader in defence and aerospace,” it added.

Of late, the rapid strides of Pipavav has attracted attention of many players, including ace investor Rakesh Jhunjhunwala, who was recently alloted securities of the company worth Rs 81.90 crore including the shares allocated to his wife and a close associate.

Recently, the company was selected as a Naval joint venture partner for building war ships with the Mazagaon Dock (MDL). However, the arrangement has run into a controversy.

Some of the rival bidders, in their complaints, had questioned Pipavav’s ability to develop the war ship as the company has not yet delivered its first ship. MDL’s decision has been put on hold by the Defence Ministry

The scrip of the company today closed at Rs 79.90 apiece on the BSE, up 2.70 per cent from the previous close.

PTI