Unimech Invests ₹39.36 Cr for 51% Stake in Saudi JV, Production by Mar-Apr 2027
Unimech Aerospace is investing SAR 15.3 million (₹39.36 crore) for a 51% stake in its Saudi Arabian JV, Kanoo-Unimech Advanced Manufacturing Solutions. The total JV equity capital is SAR 60 million. Commercial production is anticipated by late March or early April 2027, establishing a local manufacturing platform.
The investment is strategic and aims to establish a new manufacturing base, which is expected to contribute to long-term growth, but the immediate financial impact is not substantial given the total equity size.
The company is strengthening its international presence through a significant investment in a joint venture, which is expected to lead to future growth opportunities in the Oil & Gas sector.
Unimech Aerospace and Manufacturing Limited has announced the infusion of SAR 15.3 million (approximately ₹39.36 crore) as its contribution to the first tranche of equity capital for its Saudi Arabian joint venture, Kanoo-Unimech Advanced Manufacturing Solutions. The JV partners plan a total equity capital of SAR 60 million, to be contributed in two tranches. Unimech's SAR 15.3 million represents its 51% share of the first SAR 30 million tranche, while Yusuf Bin Ahmed Kanoo Company Limited (YBAK) contributes SAR 14.7 million for its 49% share. Following this, Unimech will hold a 51% stake in the JV, with YBAK holding 49%. A second tranche of SAR 30 million is planned subsequently. The JV facility is expected to commence commercial production by late March or early April 2027, establishing a local manufacturing platform for precision-engineered components to support Unimech's participation in Saudi Arabia's growing industrial and energy ecosystem, particularly in the Oil & Gas sector.
Mr. Anil Kumar, Chairman and Managing Director, stated that this investment marks a significant milestone in establishing Unimech's manufacturing presence in the Middle East. He emphasized the commitment to building a meaningful local manufacturing presence in Saudi Arabia and sees the JV as a crucial platform to serve regional customers and capitalize on opportunities emerging from Saudi Arabia's Oil & Gas and industrial sectors.
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Unimech Aerospace and Manufacturing Limited filed this with the NSE as a statutory disclosure, categorised under strategic partnerships. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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