SAR 15.3 million first equity tranche infused into Saudi JV for Oil & Gas manufacturing; 51% stake

Unimech announced infusing SAR 15.3 million (approximately INR 39.36 crore) as its contribution towards the first tranche of equity capital of its Saudi joint venture, Kanoo-Unimech Advanced Manufacturing Solutions.

Thu 1 Oct 2026

Unimech First Tranche Contribution

SAR 15.3 million (approximately INR 39.36 crore)

Planned Total JV Equity Capital

SAR 60 million in two tranches

First Tranche Size and Split

SAR 30 million; SAR 15.3 million from Unimech (51%) and SAR 14.7 million from Yusuf Bin Ahmed Kanoo Company Limited (49%)

Unimech JV Stake

51% share

Commercial Production Timeline

expected by late March 2027 or early April 2027

What happened

Unimech Aerospace and Manufacturing Limited announced the infusion of SAR 15.3 million as its contribution towards the first tranche of equity capital of its Saudi Arabian joint venture, Kanoo-Unimech Advanced Manufacturing Solutions. The company states this is equivalent to approximately INR 39.36 crore.

The equity structure

• The JV partners have planned total equity capital of SAR 60 million, to be contributed in two tranches in accordance with their respective shareholding.
• First tranche of SAR 30 million: SAR 15.3 million from Unimech, representing its 51% share, and SAR 14.7 million from Yusuf Bin Ahmed Kanoo Company Limited (YBAK), representing its 49% share.
• Second tranche of SAR 30 million, comprising SAR 15.3 million from Unimech and SAR 14.7 million from YBAK, is to be contributed subsequently in accordance with the agreed investment schedule.
• Following completion of the planned equity subscription, Unimech will hold a 51% stake in the JV, with YBAK holding the remaining 49%.

Timeline and purpose

• The JV facility is expected to commence commercial production by late March 2027 or early April 2027.
• The facility is to provide a local manufacturing platform for precision-engineered components and support Unimech's participation in the growing industrial and energy ecosystem in Saudi Arabia.
• The company states the investment is aligned with its strategy of building a local manufacturing footprint in key international markets and expanding its presence across high-value industrial sectors.

What the company said

Chairman and Managing Director Mr. Anil Kumar said the first tranche of equity contribution to the Saudi joint venture marks an important milestone in establishing Unimech's manufacturing presence in the Middle East, and that with total planned equity capital of SAR 60 million and Unimech holding a 51% stake, the company is committed to building a meaningful local manufacturing presence in Saudi Arabia.

Points to note

• The contribution announced is Unimech's share of the first tranche, quantified at SAR 15.3 million and approximately INR 39.36 crore.
• The second tranche of SAR 30 million is described as planned for subsequent contribution in accordance with the agreed investment schedule.
• Commercial production timing is stated as an expectation for late March 2027 or early April 2027.

The takeaway

This is an update on the first tranche of a quantified overseas investment and on the equity structure of a joint venture aimed at local manufacturing for Saudi Arabia's Oil & Gas and industrial market, with production expected around late March 2027 or early April 2027.

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