Reliance Naval born again as Swan Shipyard
Any parent who has agonised over what name to give their child knows it can be a big deal.
Swan Energy is learning this as it seeks to rename a shipyard it acquired from the Anil Ambani group earlier this year (2024). Without a new name, the Reliance Naval and Engineering Shipyard at Pipavav in Gujarat cannot proceed with work, including a long pending ONGC contract to design and construct five Offshore Supply Vessels (OSVs).
"But we have received (corporate affairs ministry) approval for a name change from Reliance Naval to Swan Shipyard," confirms a company source. Swan initially wanted the name changed to Swan Defence and Heavy Industries.
But the corporate affairs ministry blocked that choice. Swan is undoubtedly relieved it secured approval for its second alternative.
On October 10 (2024), Swan appointed retired Indian Navy rear admiral Vipin Kumar Saxena as CEO of Swan Shipyard. According to a Swan corporate communications officer, Saxena has more than 37 years of naval and shipbuilding leadership experience.
Swan tells us that a substantial portion of the restoration activities at the yard have been completed, and it is fully geared to begin operations this financial year (2024-25). Swan has carried out dredging, reinstated licenses and certifications, implemented safety measures, and upgraded utilities at the 750-metre by 265-metre shipyard equipped for the construction and loading out of offshore structures.
"Once we commission the shipyard, we'll carry out the ONGC work as a priority," we are told. "Work on the five OSVs is 90% complete."
These OSVs are left over from a 12 OSV order ONGC placed with previous shipyard owner Pipavav Defence before Reliance took over in January 2016. Swan Energy managing director Nikhil Merchant justified the acquisition of the ailing shipyard in the 2023-24 annual report, saying: "India's shipbuilding outlook is poised for significant transformation, driven by government initiatives and a strategic focus on enhancing domestic capabilities; the sector is currently undergoing reforms aimed at revitalising shipbuilding, improving competitiveness, and increasing employment opportunities."
Merchant added that restoration work is underway to establish a competitive shipyard, which is expected to create more than 4000 direct jobs.