Reliance Enters Ship Leasing Space at GIFT City
Following in the footsteps of Adani and Air India’s aircraft leasing ventures, Reliance Industries Limited (RIL) is making strategic waves by launching GIFT City’s first conglomerate-backed ship leasing company. This bold move marks a significant step in India’s evolving maritime leasing landscape, with RIL planning to invest a whopping ₹22,033 crore in this initiative. Reliance Industries Ship Leasing GIFT City Investment
The proposal, currently awaiting approval from the Special Economic Zone (SEZ) committee, outlines a detailed vision to establish a robust ship leasing unit. The firm will engage in operating leases for ships, voyage charters, and other maritime vessels, further broadening the business ecosystem at the International Financial Services Centre (IFSC) within GIFT City.
Read more: Adani to launch new aircraft leasing unit at GIFT City
Leadership Behind the Initiative
The strategic initiative is being steered by a power-packed team from within the Reliance conglomerate. Hitesh Kumar Sethia, CEO and President of Jio Financial Services, is at the helm. Supporting him are Amit Mehta, Senior Vice President and Head of Gases, who brings over two decades of experience at Reliance, and Jayesh Biharilal Dholakia, Assistant General Manager at RIL.
This leadership group reflects Reliance’s deep commitment and in-house expertise to navigate the complexities of the global maritime leasing business from India’s emerging financial powerhouse—GIFT City.
Funding Structure of the Ship Leasing Project
In terms of financial structure, Reliance’s venture is underpinned by a smart mix of investors’ capital, promoters’ equity, and internal accruals. As per insider reports, the funding strategy includes ₹5 crore in capital infusion by investors and promoters, ₹11,607 crore raised through financial liabilities, and the remaining ₹13.26 crore sourced from internal accruals.
A senior source disclosed, “Reliance has already approached the International Financial Services Centres Authority (IFSCA) for regulatory clearance to launch the ship leasing company, which will operate leases of vessels, voyage charters, and other maritime assets.”
Projected Export and Forex Metrics
Financial projections also reveal the venture’s potential impact on India’s export earnings and foreign exchange. The Free on Board (FOB) value for the export of services over the next five years is pegged at ₹10,780.41 crore—equivalent to around ₹2,156 crore annually.
On the outflow side, foreign exchange usage is estimated at ₹10,397 crore, translating to a positive Net Foreign Exchange (NFE) of ₹383 crore. These figures not only signal financial viability but also highlight how the project aligns with India’s vision of becoming a self-reliant maritime hub.
IFSCA and Market Response
Dipesh Shah, Executive Director (Development) at IFSCA, confirmed receiving the application from Reliance International Leasing IFSC Ltd. He commented, “There is a growing interest in ship leasing at GIFT IFSC. We have already approved seven entities and granted in-principle approvals to three more. So far, three ships have already been leased into India from this platform.”
This growing interest reflects the tremendous potential of GIFT City to emerge as a global centre for ship leasing, similar to what Singapore and Hong Kong have already achieved in Asia.
India’s Maritime Growth: GIFT City’s Strategic Advantage
India’s maritime sector is experiencing unprecedented growth. With GIFT City hosting a conglomerate-level ship leasing firm, it stands poised to become a crucial anchor point for the import-export economy. Ship leasing adds another dynamic to the range of services already flourishing at the IFSC, following the success of aircraft leasing.
While Reliance’s firm is the first of its scale, it’s worth noting that Ripley Shipping India IFSC Private Ltd. was the pioneer in ship leasing from GIFT City. The company received operational approval in March 2023 and went on to lease MV Ripley Pride—a bulk carrier built in Japan with a 76,858 DWT capacity.
Why Reliance Chose GIFT City
GIFT City, located in Gujarat, is India’s first operational smart city and international financial services hub. With world-class infrastructure, a supportive regulatory environment, and a strategic location, it offers the ideal foundation for high-value financial services.
Reliance’s decision to anchor its ship leasing firm here is a strategic endorsement of GIFT City’s potential. The city provides tax incentives, simplified compliance norms, and direct access to global financial markets—making it an ideal launchpad for maritime and leasing businesses.
Boost to India’s Economic Vision
Reliance’s foray into ship leasing perfectly aligns with the Indian government’s goal of enhancing its maritime infrastructure and financial ecosystem. The venture is expected to:
Generate employment opportunities
Attract more global investment to GIFT City
Improve India’s trade logistics
Enhance access to international capital and financing
This move positions India to reduce its reliance on foreign ship leasing firms while nurturing homegrown players who can operate at a global scale.
A Strategic Win for All Stakeholders
For Reliance Industries, this marks a bold diversification into the high-potential maritime finance space. For GIFT City, it’s an affirmation of its role as a fast-emerging international financial hub. And for the Indian maritime and logistics industry, it signals a new era of innovation, flexibility, and financial empowerment.
Future Outlook: Charting New Waters
The establishment of Reliance’s ship leasing firm in GIFT City is a major milestone in India’s maritime and financial narrative. It not only sets the stage for large-scale private sector participation but also signals India’s readiness to play a leading role in global maritime finance.
As Reliance charts this new course, it opens up new possibilities for the entire industry. The ripple effect will likely attract more conglomerates, investors, and global players to consider GIFT City as their base for high-value financial operations.
Your Opportunity to Invest in GIFT City
With GIFT City rapidly emerging as a global financial hotspot, now is the perfect time for investors and businesses to make their move. Looking to invest in this high-growth zone but not sure where to start?
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