Knowledge Marine's Milestone in Bahrain's Sand Market

Knowledge Marine & Engineering Works Ltd, operating through its subsidiary company 'Knowledge Dredging Co. W.L.L, India,' established in Bahrain, has achieved a noteworthy milestone. On August 20th, 2023, the company secured four distinct Letters of Intent (LOI) from different Sand Buyers: M/s Haji Hasan Group, Bahrain; M/s TCT Marine Contracting WLL, Bahrain; M/s K7 Contracting WLL, Bahrain; and M/s Alsalem Contracting, Bahrain. This strategic contract victory aligns with the concept of transforming waste into wealth. In the past, dredged material was merely disposed of, but this project marks a shift towards generating value for the company. The contract pertains to the "Supply and Sale of Dredged Marine Sand," and it encompasses a combined value of 15.45 Million Bahraini Dinar (approximately equivalent to 342.06 Crores Indian Rupees, using an exchange rate of 1 BD = Rs. 221.40) over a steadfast period of five years. The project is slated to commence during the third quarter of the fiscal year 2023-2024.

The aforementioned contract serves as a tangible manifestation of Bahrain's Economic Vision 2030, which outlines a clear trajectory for the ongoing advancement of the nation's economy. This progress is particularly evident in the robust expansion of the real estate sector in Bahrain. The region is witnessing a surge in residential, commercial, and hospitality developments, propelled by the current upward trend in population growth. This demographic expansion is also prompting a keen interest in the creation of man-made islands. Notably, the robust growth in the real estate industry has been substantially fostered by the increasing adoption of public-private partnerships and robust financial backing from the central bank.

In this context, Knowledge Marine & Engineering Works Ltd (KMEW) is strategically positioned to meet the evolving demands of the Bahraini economy. The company's positioning is closely aligned with the objectives of Bahrain's Economic Vision 2030. This vision underscores a burgeoning need for marine sand and specialized dredging equipment to extract this resource. KMEW possesses the capability to effectively supply these requirements, underscoring its potential to contribute significantly to the economic landscape.

Commenting on the Letter of Intent, Mr. Sujay Kewalramani, CEO of Knowledge Marine & Engineering Works Ltd said that, "We are thrilled to announce that our successful entry into the Middle East market has been achieved through the establishment of our subsidiary in Bahrain. This strategic initiative has opened the door to a multitude of opportunities. Furthermore, our recent contract achievement in the sand mining sector has significantly enhanced our business visibility, showcasing our commitment to the waste-to-revenue model. This accomplishment not only holds immense potential within the global market but also strategically positions us favorably in the domestic market for the times ahead."

Shares of Knowledge Marine & Engineering Works Ltd was last trading in BSE at Rs. 1621.60 as compared to the previous close of Rs. 1454.25. The total number of shares traded during the day was 88000 in over 613 trades.

The stock hit an intraday high of Rs. 1640.00 and intraday low of 1490.00. The net turnover during the day was Rs. 140296718.00.

Source : Equity Bulls

Keywords

KnowledgeMarineandEngineeringWorks INE0CJD01011 OrderWin Bahrain