Strategy
Call it a consequence of Modi’s recent visit to the UAE or just another strategic partnership, Anil Ambani-led Reliance Defence Ltd (RDL) has moved another step forward. Having signed a memorandum of understanding (MoU) with Abu Dhabi Ship Building, RDL will now move ahead with construction of naval ships, including frigates and destroyers to address the demands of Gulf Cooperation Council (GCC), over the next 10 years.
RDL is a fully-owned subsidiary of Reliance Infrastructure Ltd while Abu Dhabi Ship Building (ADSB) is a provider of construction, repair and refit services for naval, military and commercial vessels.
"Under this MoU, RDL and ADSB are investigating the opportunity to set up a strategic partnership for the construction of naval ships - including frigates, destroyers and other specialized vessels to address the Gulf Cooperation Council (GCC) over the next 10 years," a statement by the Reliance Group said.
The agreement could also see ADSB delivering maintenance, repair, overhaul and refit services to the vessels, in line with regional requirements.
Reliance Group is likely to use its newly acquired ship-building facilities for this partnership.
The MoU signing follows the joint statement issued during Prime Minister Narendra Modi's visit to UAE on August 18 which highlighted "cooperation and manufacture of defence equipment in India".
This potential collaboration could help both companies expand their market share and address new opportunities, the press statement said.