GRSE Secures Rs 123-Cr Contract for Mauritius Coast Guard Ship Refit
Introduction:
Garden Reach Shipbuilders & Engineers (GRSE) has successfully signed a contract valued at Rs 123.07 crore with the Ministry of External Affairs, Government of India, to carry out a refit of the Mauritius Coast Guard ship, CGS Barracuda. The deal further cements GRSE’s standing as a leading player in naval shipbuilding and defense engineering.
Key Project Details
The contract entails the normal refit of the Mauritius Coast Guard Ship (MCGS) Barracuda. GRSE’s scope of work includes not only essential services and spares but also mandatory spares as specified by the Delivery and Logistics (DL) scope. Moreover, any additional spares needed for extra work will be handled under the Growth of Work clause.
The project is scheduled for completion within 10 months from the time the ship is available for refit at GRSE’s Kolkata facility. A notable feature of the deal is the inclusion of a 15% increase for work growth and additional spares, offering flexibility for unforeseen requirements.
GRSE Secures Rs 123-Cr Contract for Refitting Mauritius Coast Guard Ship CGS Barracuda:
Strategic Importance
This contract highlights the growing international trust in India’s indigenous defense capabilities. GRSE, a state-run shipbuilder, is well-established in constructing warships and coast guard vessels for India’s defense forces. With this new project, the company strengthens its international portfolio, further expanding its operations beyond Indian shores.
In addition to shipbuilding, GRSE has diversified into various other engineering businesses. These include manufacturing pre-fabricated steel bridges, deck machinery items, and marine diesel engine overhauling services, adding depth to its engineering expertise.
GRSE Wins Rs 123-Cr Contract for Mauritius Coast Guard Ship Refit:
Financial Performance
GRSE’s recent financial results showcase robust growth. In the third quarter of fiscal year 2025 (Q3 FY25), the company reported an 11.26% increase in net profit, reaching Rs 98.19 crore. Additionally, its revenue from operations surged by 37.69%, totaling Rs 1,271 crore, compared to the same period in FY24.
This growth is indicative of GRSE’s strong operational execution and market expansion efforts.
Market Reaction
Despite the positive contract news, GRSE’s shares experienced a slight dip of 0.56%, settling at Rs 1,344.15 on the BSE. While the drop is minor, it suggests some caution among investors amid broader market conditions.
Conclusion:
This contract with the Mauritius Coast Guard adds to GRSE’s impressive list of achievements and underscores the company’s expanding footprint in both the defense and marine engineering sectors. With the government holding a 74.50% stake in GRSE, the company remains strategically aligned with India’s defense priorities and is likely to benefit from future contracts, both domestically and internationally.
FAQ:
1. What is the contract signed by Garden Reach Shipbuilders & Engineers (GRSE)?
GRSE has signed a contract worth Rs 123.07 crore with the Ministry of External Affairs, Government of India, to carry out the refit of the Mauritius Coast Guard Ship, CGS Barracuda. The project includes services, spares, and additional work as required.
2. What does the refit of CGS Barracuda involve?
The refit involves the normal maintenance and upgrade of the Mauritius Coast Guard Ship CGS Barracuda, which includes necessary spares, services, and any additional requirements under the Growth of Work clause. The ship will be refitted at GRSE’s Kolkata facility.
3. What is the timeline for completing the refit?
The refit project is scheduled to be completed within 10 months from the date the ship becomes available for the refit at GRSE Kolkata.
4. What does the 15% Growth of Work and additional spares mean?
The contract includes a 15% provision for the Growth of Work, which covers any additional work or spares that might be needed during the refit beyond the original scope. This ensures flexibility in case of unforeseen requirements during the refit process.
5. How does this contract impact GRSE’s business?
This contract not only reinforces GRSE’s position as a key player in naval shipbuilding for both domestic and international defense markets but also expands its international reach. The company is diversifying into various engineering sectors, such as prefabricated steel bridges and marine diesel engine services.
6. What is GRSE’s recent financial performance?
GRSE has shown strong financial growth, reporting an 11.26% rise in net profit to Rs 98.19 crore for Q3 FY25. The company also saw a 37.69% increase in revenue from operations, reaching Rs 1,271 crore compared to Q3 FY24.
7. How did the stock market react to the news?
Following the announcement of the contract, GRSE’s share price saw a slight decrease of 0.56%, closing at Rs 1,344.15 on the Bombay Stock Exchange (BSE). Despite the positive contract news, market sentiment appears cautious.
8. What is the Government of India’s stake in GRSE?
The Government of India holds a 74.50% stake in GRSE, which reflects the company’s close ties to India’s defense and maritime priorities.
9. How does this contract benefit Mauritius?
The refit of CGS Barracuda strengthens the Mauritius Coast Guard’s capabilities in safeguarding its maritime borders and responding to security challenges in the region, contributing to enhanced maritime security in the Indian Ocean area.
10. What are GRSE’s core capabilities?
GRSE is engaged in building warships, coast guard vessels, and other defense ships for the Indian Navy and Indian Coast Guard. Beyond shipbuilding, GRSE also manufactures prefabricated steel bridges, deck machinery items, and provides marine diesel engine overhauling services.
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