• First tranche of SAR 30 million equity capital to be contributed by JV partners; Unimech to hold 51% stake

Bengaluru, October 01, 2026: Unimech Aerospace and Manufacturing Limited (“Unimech”), a leading manufacturer of high-precision engineering components and solutions, today 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 investment is equivalent to approximately INR 39.36 crore.

The JV partners have planned a total equity capital of SAR 60 million, to be contributed in two tranches in accordance with their respective shareholding. The first tranche of SAR 30 million comprises a contribution of SAR 15.3 million by Unimech, representing its 51% share, and SAR 14.7 million by Yusuf Bin Ahmed Kanoo Company Limited (“YBAK”), representing its 49% share.

Following the completion of the planned equity subscription, Unimech will hold a 51% stake in the JV, with YBAK holding the remaining 49%. The second tranche of SAR 30 million, comprising SAR 15.3 million from Unimech and SAR 14.7 million from YBAK, is expected to be contributed subsequently in accordance with the agreed investment schedule.

The JV facility is expected to commence commercial production by late March 2027 or early April 2027. The facility will provide a local manufacturing platform for precision-engineered components and support Unimech’s participation in the growing industrial and energy ecosystem in Saudi Arabia.

Key Highlights

  • SAR 60 million total planned equity capital for the Saudi JV.
  • SAR 30 million first tranche of equity capital being contributed by the JV partners.
  • SAR 15.3 million contribution by Unimech towards the first tranche.
  • SAR 14.7 million contribution by YBAK towards the first tranche.
  • Unimech to hold a 51% stake in the JV, with YBAK holding 49%.
  • Second tranche of SAR 30 million planned subsequently, comprising SAR 15.3 million from Unimech and SAR 14.7 million from YBAK.
  • Commercial production expected to commence by late March / early April 2027.
  • Establishes a local manufacturing platform in Saudi Arabia to serve the Oil & Gas industry.

Strategic Rationale

The investment is aligned with Unimech’s strategy of building a local manufacturing footprint in key international markets and expanding its presence across high-value industrial sectors.

Saudi Arabia represents an important market for precision engineering and manufacturing, particularly within the Oil & Gas ecosystem. The JV will enable Unimech to develop local manufacturing capabilities, work more closely with customers in the region and pursue opportunities arising from the Kingdom’s ongoing industrial development.

With commercial production targeted for late March / early April 2027, the JV is expected to provide a scalable platform for Unimech to build its presence in the region and participate in the long-term growth of the Saudi Arabian Oil & Gas market.

Commenting on the development, Mr. Anil Kumar, Chairman and Managing Director, Unimech Aerospace and Manufacturing Limited, said:

“The first tranche of equity contribution to our Saudi joint venture marks an important milestone in establishing Unimech’s manufacturing presence in the Middle East. With a total planned equity capital of SAR 60 million and Unimech holding a 51% stake in the JV, we are committed to building a meaningful local manufacturing presence in Saudi Arabia. As the facility progresses towards commercial production, we see the JV as an important platform to serve customers in the region and participate in the long-term opportunities emerging from Saudi Arabia’s Oil & Gas and industrial ecosystem.”