Garden Reach Shipbuilders & Engineers Share price and Fundamental Analysis

Company History

Garden Reach Shipbuilders & Engineers Limited was incorporated in February 26, 1934 and later on converted into a Public Company on November 17, 2017. The Company is primarily in the business of ship building requirements of the Indian Navy and the Indian Coast Guard. In addition to the shipbuilding, GRSE also builds and supplies various boats, pontoons, barge, sailing dinghy, fishing trawler, fire float, tug, dredger, passenger ferry, motor cutter, deck whaler and launch. Engineering division of the Company makes portable bridges, deck machinery items and marine pumps. Engine division assemble, test and overhauls of marine engines.

Over the years, the Company has established capabilities for in-house design and shipbuilding and has made considerable contributions to the indigenous warship construction program of our country. The Shipbuilding product line spans from technologically sophisticated Frigates and Corvettes to Fast Patrol Vessels. In last five (5) decades, the company has built and delivered ships ranging from small to large and advanced vessels including frigates, anti-submarine warfare corvettes, missile corvettes, landing ship tanks, landing craft utilities, survey vessels, fleet replenishment tankers, fast patrol vessels, offshore patrol vessels, inshore patrol vessels, WJ-FAC, hover crafts and fast interceptor boats to the Indian Navy, Indian Coast Guard, MHA and Governments of other countries. The Company has built and supplied more than 750 vessels to carry men and materials as well as for the surveillance of the coast line. Over the years, it has responded to the varied shipbuilding requirements of the Indian Defence Services and has evolved from building simpler vessels to building bigger and technically advanced warships.

Presently, the company has three (3) separate facilities for shipbuilding, all of which are located in close vicinity of each other at Kolkata, India. The Company builds ships at the Main Works Unit and the Rajabagan Dockyard. Third facility, the FOJ Unit is primarily used for fitting out and repair of ships. The Diesel Engine Plant (DEP) is engaged in the testing and overhauling of marine propulsion engines and assembly of semi-knocked down units of diesel engines. The Engineering segment is engaged in the manufacturing and fabrication of portable steel bridges, deck machineries of ships and marine pumps.

Over the years, the Company has been credited with many firsts in the Indian shipbuilding industry. For instance, it is the first Indian shipyard to integrate carbon composite superstructure with steel hull for the construction of its third ASW Corvette for the Indian Navy, which resulted in a reduction in weight and increase in stability of the ships.

The Company has in the past and continues to associate with several technology firms in their industry like MTU and other international/ domestic entities for their different business segments.

Prior to being initially incorporated as a limited company, it was engaged in the business of operating shipbuilding and repair workshops since 1884 as an unincorporated entity. The Company was incorporated under the name and style of 'Garden Reach Workshops Limited' on February 26, 1934. Later on, the name converted to 'Garden Reach Workshops Private Limited' on November 5, 1957.

In the year 1960, the Company was acquired by the GoI from from Macneill & Barry Limited. The Company changed its name to 'Garden Reach Workshops Limited' on November 30, 1961 pursuant to the acquisition of the Company by the GoI.

In 1961, the company built the indigenous warship of the country INS Ajay, which was the first Naval ship built in the country after India's independence.

The name of the company was again changed from 'Garden Reach Workshops Limited' to 'Garden Reach Shipbuilders & Engineers Limited' on December 31, 1976 pursuant to the certificate of incorporation issued by the Registrar of Companies, West Bengal.

In 1980, the company built the patrol vessel for Indian Coast Guard, CGS Rajhans (GRSE Yard 2003). In 1981, the company designed and built survey vessel for Indian Navy. This 1900-ton ship, INS Sandhayak was delivered on February 26, 1981. In 1984, the company designed in-house and built the first of class landing ship tank (large). The class ship of new design FPV, CGS Priyadarshini built by the company was delivered to Indian Coast Guard on 3 March 1992.

The class P-16A guided missile frigate 'INS Brahmaputra' built by the company was launched on 26 January 1994. In 1994, the company built research vessel named as 'Sagardhwani' which means 'Sound of Sea'. In 1997, the company designed & developed portable steel bridges for the first time in India.

In 2000, the company became the first and the only Indian shipyard to build and subsequently deliver a fleet tanker to the Indian Navy and to build and subsequently deliver a hovercraft to the Indian Coast Guard among others. The company built and delivered the class fast attack craft on September 11, 2000 after extensive trials.

On September 5, 2006, the company was conferred with the status of Schedule B & Mini Ratna-Category I company by the Department of Public Enterprises under the Ministry of Heavy Industries and Public Enterprises, Government of India. In 2016, the Company acquired the Rajabagan Dockyard from Central Inland Water Transport Corporation Limited.

The two WJ-FAC, INS Carnicobar and INS Chetlat built by the company were delivered on January 09, 2009 to Indian Navy.

The company signed the contract for building CGS Barracuda, a multi-role offshore patrol vessel for National Coast Guard of Mauritius on March 04, 2011 for export of a warship. The class ASW Corvette, INS Kamorta built by the company was delivered to Indian Navy on July 12, 2014. The first of the four (4) follow-on WJ-FAC, INS Tarmugli was delivered to the Indian Navy on April 16, 2016.

The Company was converted into a public limited company on November 17, 2017.

The data Centre of Central Design Office at the company's 61 Park Unit was inaugurated on 1 June 2018. A modern Pump Test Bed Facility at the company's Taratala unit was inaugurated on 11 June 2018. A Virtual Reality Lab of Central Design Office at the company's 61 Park Unit was inaugurated on 7 July 2018.

The Government of India offloaded 2.92 crore equity shares of the company by way of an initial public offer (IPO) during the period from 24 September 2018 to 1 October 2018. The IPO was priced at Rs 118 per share. The stock made its debut on the bourses on 10 October 2018. The Government of India's stake in the company declined to 74.5% from 100% after the IPO.

The Company has delivered 4 Warships to Indian Navy during FY 2018-19. On 30 October, 2018, GRSE signed the contract for construction and delivery of 4 Survey Vessels (Large) for the Indian Navy. It signed a contract with the Indian Navy for construction and delivery of 8 Anti-Submarine Warfare Shallow Water Craft on 29 April, 2019. It constructed two bailey bridges near Majerhat, Kolkata which was inaugurated on 12 October, 2018. The erection followed by installation & commissioning of both the bridges was completed in 2018-19. On 30 Mar 2019, GRSE became the first Indian Shipyard to build and deliver 100 warships, a Landing Craft Utility 'IN LCU L-56' with over 90% indigenous content to Indian Navy.

During FY 2019-20, Company signed a MoU with M/s. Elbit Systems, Isreal, for indigenous development and supply of Unmanned Surface Vessels (USV). The last ship of the 05 Fast Patrol Vessel (FPV) Project, Kanaklata Barua', Yard 2117, was launched by Government of India on 10 August, 2019. First ship of five FPV class, constructed by Company, 'ICGS Priyadarshini' was commissioned at Kakinada on 27 April, 2019. The 2nd and 3rd ships of 05 ship of FPV project, constructed by the Company, 'ICGS Annie Besant' and 'ICGS Amrit Kaur' were commissioned at Kolkata on 12 January, 2020. The 6th in the series of eight LCU Class ships 'IN LCU L-56', constructed by the Company, was commissioned at Visakhapatnam on 29 July, 2019. Start Production of the 2nd ship of the Survey Vessel (Large) project (Yard 3026) commenced on 29 November, 2019.

During the year 2020-21, GRSE delivered 1 ship (Fast Patrol Vessel) to Government of Seychelles (GoS), taking the total deliveries during the year to 3. It completed the LCU Mk IV Project by delivering last ship of the Class Yard 2099, (LCU L-58),which was handed over to Indian Navy on 31 December, 2020 by GRSE. The seventh and eighth ships of the Landing Craft Utility (LCU) Project IN LCU L-57 and IN LCU L-58, constructed by Company, were commissioned at Port Blair on 15 May 2020. The fifth ship in the series of five Fast Patrol Vessels, Yard 2117 was delivered by GRSE on 09 June, 2020, which was handed over to the Indian Coast Guard of the Company. The Ship renamed as 'SCG PS Zoroaster' was delivered to the Coast Guard of Seychelles at Port Victoria, Seychelles on 08 April, 2021. 'INS Kavaratti', the last ship of four Anti-submarine Warfare Corvettes (ASWC) built by GRSE was commissioned at Visakhapatnam on 22 October, 2020 at Visakhapatnam. Yard 3022, the first ship of Frigate P-17A Project, was launched on 14 December, 2020. The new 250 ton capacity Goliath Crane ordered on M/s Sangsangin Ship Machinery Ltd, was transported from South Korea in fully assembled condition by sea, got unloaded at GRSE on 26 February, 2021 and was commissioned on 22 June, 2021. As part of a modernisation plan of Raja Bagan Dockyard (RBD), 02 Nos. Hull Block Fabrication Sheds at RBD Unit were commissioned on 25 Mar'21, which enhanced block fabrication capacity of the shipyard. Construction of Cofferdam at the mouth of old Dry Dock No. 3 (DD-5) was completed in February, 2021 to enable feasibility study by a consultancy firm for augmentation of dock capacity. 4-storied New Corporate Office at 61 Park Unit was inaugurated on 16 December, 2020, which was shifted to the new location.

During the Financial Year 2021-22, Company completed the refit of Barracuda, a Mauritius Ship. It signed an agreement with Syama Prasad Mookherjee Port, Kolkata for 03 existing Dry Docks for shipbuilding including repair & refit of ships. The new 250 Ton capacity Goliath Crane (116m span) covering Dry Dock, Inclined Berth & Module Hall, was commissioned in August, 2021. 200KWp roof top solar power plant was commissioned in February, 2022 whose total capacity of the plant at GRSE is now 1500 KW i.e. 1.5 MW.