SKIL in 1991, joined hands with the Government of Gujarat to promote and develop the Port of Pipavav into a modern all weather deep water direct berthing seaport on the coast of Gujarat. Located between Mumbai and Kandla the Port Of Pipavav is the first seaport in the country to be developed in joint sector with private initiative, capital and management.

The project was setup through a Special Purpose Vehicle (SPV) company, namely Gujarat Pipavav Port Limited (GPPL)

In comparison to other ports on India's west coast, Pipavav port has considerable advantages being an all-weather port and having one of the deepest drafts among the west coast ports that enables it to receive larger ships. Moreover, the port's relative proximity (compared to Mumbai and JN Port) to Northern India's hinterland as well as the port's efficiency made it highly cost-effective for cargo movements between the ports. The port is naturally protected by islands which shelter and protect it from the south-westerly waves and monsoon swells, permitting easy and safe navigation of ships.

The port received the "Best Port In Gujarat Award” from Gujarat Infrastructure Development Board in 1999. IDFC award for excellence in infrastructure was bestowed in the year 2000 and was also recognized as amongst top 3 emerging ports of Asia in 2002 by Llyod’s Hongkong.

In 2005 SKIL divested its stake in and ceded the control of GPPL in favour of Maersk / AP Moller Group, Denmark.