Garden Reach Shipbuilders board approves 2,896 crore rupees for Raichak shipyard
The outlay funds a standalone greenfield shipyard at Raichak, the site of an expansion plan the company announced last month.
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Garden Reach Shipbuilders and Engineers' board has approved capital expenditure of 2,896 crore rupees for a greenfield shipyard at Raichak.
The approval follows an August 23 announcement in which GRSE laid out a 2,670 crore rupee investment to expand shipbuilding and repair facilities at Raichak, Shalimar and Kidderpore, according to Wikipedia. The Raichak component of that plan was itself put at more than 2,500 crore rupees, close to the figure approved today. Under the August announcement, the Raichak site is planned to include a 200 metre dry dock, a slipway and a launching pad, allowing construction of warships up to 200 metres long and commercial vessels up to 60,000 DWT, according to Maritime Gateway.
GRSE's current yard can build 28 vessels a year, with capacity planned to rise to 32 vessels once modernisation work finishes by December 2026, according to Wikipedia. The company reported standalone net profit of 172.84 crore rupees for the first quarter of the 2027 financial year, up 43.82% from a year earlier, according to Sahi News, in results posted before the August expansion plan was announced.
Today's approval adds to the spending already announced in August rather than replacing it, and confirms that GRSE's board is following through on the capacity plans it laid out at Raichak. For investors, it reads as continuation of a capex programme already known to the market rather than a new signal about the company's prospects.