Defence PSU Garden Reach Shipbuilders and Engineers Ltd (GRSE) on Friday said it has signed a memorandum of understanding (MoU) with DEMPO Group to launch a collaboration model to build commercial vessels in three premier shipyards of DEMPO at Goa and Bhavnagar.

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This is GRSE's maiden attempt to diversify in a big way in commercial shipbuilding to capture a large market share in the construction of commercial vessels, both domestic as well as international, according to a stock exchange filing.

"Aligning this concept with the emerging commercial shipbuilding market, GRSE is now partnering with Dempo Holdings Private Ltd to share their shipbuilding resources with GRSE to build commercial vessels on the West Coast," GRSE said.

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Commodore P R Hari, chairman and managing director of GRSE, said, "To avail the business opportunity of growing demand in the commercial vessel sector, the company has identified a suitable partner for progressing with commercial shipbuilding.

The shipyards of the DEMPO group give a positional advantage to these clients for shifting the delivered vessels from India in comparison to China, Vietnam, and Turkey."

Srinivas Dempo, chairman of the DEMPO Group of companies, expressed confidence that the collaboration between GRSE and Dempo will generate a very productive ecosystem, deriving strengths from each other’s expertise and leveraging capacities towards bagging more domestic and foreign shipbuilding orders.

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He also articulated about tremendous business potential in green shipbuilding which can be tapped by this collaboration and contribute towards achieving a sustainable and safer environment.

Shares of Garden Reach Shipbuilders & Enginers Ltd ended at Rs 789.20, up by Rs 4.30, or 0.55 percent on the BSE.