Article Posted on : - Aug 07, 2012

A file photo.

MUMBAI (PTI): Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) Monday said it has bagged two international orders worth Rs 1,192 crore from a West African client for building two offshore patrol vessels.

This is the first international order for Pipavav, which has recently ventured into defence sector, the company said in a statement.

It added that the contract also has the option to increase the order to two more such vessels and has to be delivered in 32 months.

Pipavav, however, did not disclose the name of its client from whom it has secured the orders.

"The contract value is pegged at Rs 1,192 crore with two option ships which can be exercised by the client within 24 months upon which the contract value may go up to Rs 2,504 crore," it said.

The company further said it is negotiating for four numbers corvette type warships with a global major but did not disclose further.

"One of the thrust areas of the company is to focus on foreign military sales to the friendly countries," the company said.

The offshore patrol vessels are a 95 meter long and are similar to five vessels for which the Ministry of Defence has placed orders with Pipavav last year, it added.

The company further said after the order its current order book size has increased by 20 per cent, though did not reveal its total order book size.

Shares of Pipavav closed on Monday at Rs 61.25 apiece on the BSE, down 2.16 per cent from the previous close.