Punj Lloyd Ltd said on Monday it has entered into a joint venture with Kingdom of Saudi Arabia to form a joint venture company with a share capital of two million Saudi Riyals.
Punj Lloyd would hold 49 per cent in the JV company while 51 per cent stake would be held by Khalid Bin Bandar Bin Sultan of Saudi Arabia, Punj Lloyd informed the Bombay Stock Exchange.
The JV company to be named 'Dayim Punj Lloyd Engineering Ltd' would operate in engineering, procurement, construction and commissioning of onshore and offshore projects for the hydrocarbon sector, power chemical, water and sewage sector, civil infrastructure and industrial projects in Saudi Arabia, it said.
KBS would be the chairman of Dayim-Punj Lloyd and his role would be to identify commercial opportunities for the JV company in Saudi Arabia and to liaise with various governmental and regulatory authorities besides organising banking facilities.
"This JV will help PLL identify new business opportunities in Saudi Arabia. We have been looking forward to increase our market presence in Saudi Arabia for many years. The formation of this 49:51 joint venture provides PLL a greater opportunity to participate in the mainstream of the Saudi Arabia Market," Punj Lloyd CMD Atul Punj said.
Punj Lloyd would provide engineering, design, construction and project management expertise, apart from selecting, hiring the requisite manpower and assisting Dayim Punj Lloyd in identifying and selecting suppliers for equipment, it added.
The shares of the company were trading at Rs 1214, up 0.14 per cent on the BSE.
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