Anil Ambani-backed Reliance Defence Ltd has entered into a pact with Abu Dhabi Ship Building (ADSB) to construct warships such as frigates and destroyers for the Persian Gulf nations.

The two companies are in the process of incorporating a joint venture, which will encompass both construction of new naval vessels as well as maintenance and refit opportunities of existing commercial and naval vessels in the region over the next ten years. This venture is expected to open up opportunities worth ₹10,000 crore, according to one industry estimate.

ADSB is recognised as the only shipyard with considerable naval and military shipbuilding experience in the region. It is 40 per cent owned by Mubadala, 10 per cent by Abu Dhabi’s government and 50 per cent publicly traded on the UAE’s stock exchange.

Reliance Defence has been making aggressive moves in this segment over the last six months. In March, Reliance acquired a controlling stake in Pipavav Defence and Offshore Engineering Company for ₹819 crore. The Reliance-Pipavav combine has bagged three defence-related contracts from Russian companies, including a deal to manufacture 200 Kamov 226T helicopters in India and a contract to build Grigorivich frigates for the Russian navy.

Reliance Group recently said it will invest ₹6,500 crore in building an aerospace equipment manufacturing centre in Nagpur.

Reliance Group is likely to use the shipbuilding facilities at Pipavav for the collaboration with Abu Dhabi Ship Building.

“Skills developed and the experience gained through this collaboration will further add to Reliance Group's capabilities and position it favourably as a strategic partner for Indian Navy's future programmes,” the company said in a statement.

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