Stock Report

KMEW Propels Inland Waterways Vision with Key IWAI Shipbuilding Contracts

Posted On : 2025-10-10 15:19:11( TIMEZONE : IST )

Knowledge Marine & Engineering Works Limited ("KMEW") (BSE: 543273) (NSE: KMEW) is proud to announce that we have been awarded a Fifth work order by Inland Waterway Authorities of India ("IWAI") for Design, construction and supply of 4 Nos. of Cutter Suction Dredger and Ancillary Units (4 Nos. Work Boats + 4 Nos. Accommodation Boats) under Capacity Augmentation of National Waterways - 1 (River Ganga). The said work order is valued at ₹ 127.12 Crores (Rupees One Hundred Fifty Crores) excluding taxes.

The said work order is to be executed in two phases within the total duration of 18 Months. In first phase 2 CSD + 2 Work Boats + 2 Accommodation Boats are to be supplied in 14 months and in Second Phase 2 CSD + 2 Work Boats + 2 Accommodation Boats is to supplied within 18 months.

The supply of these CSDs, works boats and accommodation boats will be utilized by the IWAI for "Capacity Augmentation of National Waterway-1 (Jal Vikas Marg Project)".

These vessels will play a pivotal role in enhancing navigability and infrastructure along National Waterway-1, supporting IWAI's mission to modernize inland water transport.

In the recent year, KMEW have owned and successfully deployed 9 Cutter Suction Dredger for its various National Waterways projects across India.

Now, KMEW will utilise this expertise in commercial ship building and will provide a state of art vessels to IWAI for its Jal Marg Vikas Project.

"Union Cabinet Approves 4-Pillar Maritime Development Plan"

The recent INR 69,725 crore 4-Pillar Maritime Development Plan benefits KMEW by creating a fertile environment for growth in the Indian shipbuilding sector, aligning KMEW's business strategy with the government's push for domestic capacity building. Specifically, the plan provides several strategic advantages for KMEW and its transition into commercial shipbuilding.

Expanded market opportunity

- Massive investment and capacity increase: The government's plan to inject ₹4.5 lakh crore in investments and add 4.5 million gross tonnages (GT) in capacity signals a significant expansion of the market. This creates a substantial demand for vessels that KMEW, with its newly acquired shipyard and existing capabilities, is well-positioned to meet.

- Alignment with national policy: KMEW's expansion into commercial shipbuilding is strategically aligned with the "Aatmanirbhar Bharat" vision, which aims for selfreliance and greater domestic manufacturing. This alignment positions KMEW favourably for government contracts and incentives.

Competitive advantage and financial benefits

- Financial support schemes: The plan extends the Shipbuilding Financial Assistance Scheme (SBFAS) until 2036 with a total corpus of Rs 24,736 crore and establishes a Maritime Development Fund (MDF) with a corpus of Rs 25,000 crore to lower borrowing costs. This will provide KMEW with easier access to capital for expansion and projects, increasing its competitiveness.

- High-margin expansion: KMEW's move into commercial shipbuilding is a highmargin extension of its existing capabilities, allowing the company to capitalize on the new market with potentially greater profitability.

Operational advantages

- Leveraging in-house expertise: By building over 90% of its operational crafts inhouse, KMEW has already demonstrated strong internal shipbuilding capabilities. This prior experience is a major asset as it scales up commercial shipbuilding.

- Strong manufacturing backbone: The recent acquisition of a shipyard gives KMEW the necessary infrastructure to scale up production and meet increased demand. The government's plan to support brownfield and greenfield shipyard development will further benefit KMEW's expansion efforts.

- Landmark IWAI order: The order from the Inland Waterways Authority of India (IWAI) places KMEW in a strong position to secure future government contracts. The order demonstrates KMEW's ability to win and execute projects aligned with national priorities.

Risk mitigation

- Reduced reliance on foreign ships: The government's push to reduce reliance on foreign shipping services creates a protected domestic market. This helps Indian shipbuilders like KMEW by limiting competition and securing demand.

- Strategic importance: The plan recognizes shipbuilding as a strategically important industry for national, energy, and food security. This reinforces government support and commitment to the sector, mitigating potential policy risks for KMEW.

Commenting on the Work Order, Mr. Sujay Kewalramani, CEO of Knowledge Marine & Engineering Works Ltd said that, We are proud to announce a second and repeat order win (in shipbuilding) from Inland Waterways Authority of India for the design, construction and supply of 04 Nos. of Cutter Suction Dredgers 04 Nos. of Work Boats and 04 Nos. of Accommodation Boats. It was tough competition between existing players and the new entrants. In alignment of the earlier work, we are ready and equipped with building of the said crafts and supply to the IWAI within stipulated time. This strategic diversification in the commercial ship building is in alignment with Government initiative of Make in India. We want to diversify the Business of the Company to B to G that builds dredgers and ancillary crafts in India and supports Nation building.

It also affirms our growing role in supporting national maritime objectives through supply of reliable and high-quality ancillary services. This order win reflects our unwavering dedication towards ship building and hallmarks our brand that drive sustained growth and stakeholder trust.

We have recently made an acquisition of a yard in Maharashtra. The yard now has potential business worth 200 Crores plus for the upcoming two years. The vision is to develop a sustainable order book for the shipbuilding business."

Shares of Knowledge Marine & Engineering Works Ltd was last trading in BSE at Rs. 2389.10 as compared to the previous close of Rs. 2252.65. The total number of shares traded during the day was 4910 in over 766 trades.

The stock hit an intraday high of Rs. 2402.50 and intraday low of 2194.00. The net turnover during the day was Rs. 11393241.00.