Unimech Aerospace and Manufacturing has invested ₹39.36 crore (SAR 15.3 million) in its Saudi Arabian joint venture with Yusuf Bin Ahmed Kanoo Company (YBAK). According to reports from CNBC TV18, this investment represents Unimech's contribution to the first tranche of equity capital for Kanoo-Unimech Advanced Manufacturing Solutions. The first tranche totals SAR 30 million, with Unimech contributing SAR 15.3 million for a 51% stake and YBAK contributing SAR 14.7 million for the remaining 49%.
The two partners have planned total equity capital of SAR 60 million, to be invested in two tranches. As reported by CNBC TV18, the second tranche of SAR 30 million will comprise another SAR 15.3 million from Unimech and SAR 14.7 million from YBAK. Once the planned investment is completed, Unimech will hold 51% of the joint venture, while YBAK will own 49%. The facility is expected to begin commercial production by late March or early April 2027.
The joint venture's facility will manufacture precision-engineered components for the oil and gas industry in Saudi Arabia, according to CNBC TV18 reports. Anil Kumar, Chairman and Managing Director of Unimech Aerospace and Manufacturing, stated that the first tranche marks an important milestone in establishing Unimech's manufacturing presence in the Middle East. He emphasized the company's commitment to building a meaningful local manufacturing presence in Saudi Arabia to serve regional customers and tap opportunities from the country's oil and gas and broader industrial sectors.
Following the announcement, Unimech Aerospace and Manufacturing shares closed 2.60% higher at ₹1,768.90 on the NSE on October 1, as reported by CNBC TV18. The positive market reaction reflects investor confidence in the company's strategic expansion into the Middle Eastern market through this joint venture partnership. Kumar noted that the investment is part of Unimech's strategy to build manufacturing operations in international markets and expand into more industrial sectors.
