Punj Lloyd - Going To Saudi Arabia

Punj Lloyd - Buy And Forget

Punj Lloyd has bagged a contract of over Rs 138 crore from Gas Authority of India (Gail) for construction of a pipeline project. According to a company release issued today, the contract involves construction of spread I Dahej-Uran pipeline project and is expected to be completed by February 2007. "This is a prestigious project for us and represent another step forward in meeting company's strategic growth objectives," Atul Punj, chairman and managing director of Punj Lloyd, said.

Earlier, engineering construction major, Punj Lloyd (PLL) has announced a joint venture with His Royal Highness Prince Khalid Bin Bandar Bin Sultan (KBS), Kingdom of Saudi Arabia. The jointly owned company with the share capital of 2 million Saudi Riyals would be named ‘Dayim-Punj Lloyd Engineering Limited’ in which PLL would hold 49%, while KBS would hold 51% stake. Dayim-Punj Lloyd Engineering Ltd will operate in engineering, procurement, construction, commissioning of onshore and offshore projects for the hydrocarbon sector, power, chemical, water and sewage sector, civil infrastructure and industrial projects in the Kingdom of Saudi Arabia.

HRH Prince Khalid Bin Bandar Bin Sultan will be the Chairman of Dayim-Punj Lloyd. PLL would provide engineering, design, construction and project management expertise, apart from selecting, hiring the requisite manpower and assisting the JV in identifying and selecting suppliers for equipment. KBS role would be to identify commercial opportunities for the JV in Saudi Arabia and to liaise with various governmental and regulatory authorities besides organizing banking facilities for the JV.

Commenting on the announcement of JV, Chairman and Managing Director of Punj Lloyd Limited, Mr. Atul Punj said, “This JV will help PLL identify new business opportunities in Saudi Arabia. This joint venture will be a powerful vehicle for both companies to expand roles in Saudi Arabia by offering the best of each company's expertise along with a dedicated service and support organization. We have been looking forward to increase our market presence in Saudi Arabia for many years. HRH Prince Khalid Bin Bandar Bin Sultan is well-recognized and respected in Saudi Arabia with strong capabilities in identifying commercial opportunities. The formation of this 49:51 joint venture provides PLL a greater opportunity to participate in the mainstream of the Saudi Arabia market”.