Joint Venture Investment Details

Unimech Aerospace and Manufacturing Limited announced an investment of SAR 15.3 million (approximately INR 39.36 crore) as its contribution towards the first tranche of equity capital in its Saudi Arabian joint venture, Kanoo-Unimech Advanced Manufacturing Solutions.

Investment Structure and Ownership

  • Total planned equity capital for the JV: SAR 60 million
  • First tranche: SAR 30 million
  • Unimech contribution: SAR 15.3 million (51% share)
  • Yusuf Bin Ahmed Kanoo Company Limited (YBAK) contribution: SAR 14.7 million (49% share)
  • Second tranche: SAR 30 million (planned subsequently)
  • Unimech contribution: SAR 15.3 million
  • YBAK contribution: SAR 14.7 million
  • Final ownership structure: Unimech 51%, YBAK 49%

Timeline and Operational Details

  • Commercial production expected to commence: late March 2027 or early April 2027
  • The facility will provide local manufacturing platform for precision-engineered components
  • Focus on serving Saudi Arabia's growing industrial and energy ecosystem

Strategic Rationale

  • Aligns with Unimech's strategy of building local manufacturing footprint in key international markets
  • Expands presence across high-value industrial sectors, particularly Oil & Gas
  • Enables development of local manufacturing capabilities in Saudi Arabia
  • Facilitates closer customer collaboration in the region
  • Positions company to pursue opportunities from Kingdom's ongoing industrial development

Management Commentary

Mr. Anil Kumar, Chairman and Managing Director, stated: "The first tranche of equity contribution to our Saudi joint venture marks an important milestone in establishing Unimech's manufacturing presence in the Middle East. With a total planned equity capital of SAR 60 million and Unimech holding a 51% stake in the JV, we are committed to building a meaningful local manufacturing presence in Saudi Arabia."

Company Background

Unimech Aerospace and Manufacturing Limited is a precision engineering company manufacturing high-precision components, assemblies and engineering solutions for demanding applications across aerospace, defence, energy and other high-technology industries.