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Unimech Invests ₹39 Crore in Saudi JV for Oil & Gas Components, Targets 2027 Production
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CNBC TV18•01-10-2026, 18:51
Unimech Invests ₹39 Crore in Saudi JV for Oil & Gas Components, Targets 2027 Production
- •Unimech Aerospace and Manufacturing invested SAR 15.3 million (₹39.36 crore) in its Saudi Arabian joint venture with Yusuf Bin Ahmed Kanoo Company (YBAK).
- •This investment is Unimech's contribution to the first tranche of equity capital for Kanoo-Unimech Advanced Manufacturing Solutions, securing a 51% stake.
- •The total planned equity capital for the JV is SAR 60 million, to be invested in two tranches, with Unimech maintaining a 51% ownership.
- •The joint venture's facility is expected to begin commercial production of precision-engineered components for the oil and gas industry in Saudi Arabia by early 2027.
- •The investment aligns with Unimech's strategy to expand manufacturing operations internationally and into new industrial sectors, establishing a presence in the Middle East.
Key Questions Answered
Unimech Aerospace and Manufacturing invested SAR 15.3 million, which is approximately ₹39.36 crore, as its contribution to the first tranche of equity capital for the joint venture.
The joint venture facility will manufacture precision-engineered components for the oil and gas industry in Saudi Arabia and is expected to begin commercial production by late March or early April 2027.
Unimech holds a 51% stake in the joint venture, while its partner Yusuf Bin Ahmed Kanoo Company (YBAK) owns the remaining 49% stake.
