ABG to invest Rs 1,200 cr in new Gujarat shipyard
Buoyed by a spurt in orders, ABG Shipyard has decided to set up a greenfield shipyard in south Gujarat with an investment of Rs 1,200 crore.
By Sumantra Das, ET Bureau |
MUMBAI: Buoyed by a spurt in orders, ABG Shipyard, a leading private shipyard, has decided to set up a greenfield shipyard in south Gujarat with an investment of Rs 1,200 crore. The new shipyard will be set up over 300 acres, largest among its two existing shipyards at Surat and at Dahej in Gujarat. ABG Shipyard CFO Dhananjay Datar said, ���The new shipyard will cater to larger ships and offshore vessels. It will have a capacity of building six to eight ships a year.���
The proposed shipyard will be set up near existing facility in Hazira and expected to be operational in three years. The company expects that the new shipyard will be able to generate revenues of over Rs 2,000 crore every year. ABG Shipyard manufactures marine ships, including bulk carriers, deck barges, interceptor boats, anchor handling supply ships, driving support ships, tugs and offshore vessels. The company is expected to double the size of its order book to Rs 10,000 crore in two years following cancellation of orders at various shipbuilding yards across the globe, including China.
Analysts suggest that the Indian yards have recently recorded new orders in the offshore services, a segment benefiting from expansion of companies engaged in oil and gas exploration. ���With huge order inflows last year, Indian companies are reasonably comfortable for the next few years and are focusing more on capacity expansions,��� said an analyst. Bharti Shipyard is also going for a major expansion plan.
A recent study suggests, about 17% orders for building new OSVs (offshore supply vessels) are with Chinese companies. But their delivery will be delayed, putting further pressure on vessel supply shortage and increasing demand. OSV comprises 45% of total order of new vessels.
The proposed shipyard will be set up near existing facility in Hazira and expected to be operational in three years. The company expects that the new shipyard will be able to generate revenues of over Rs 2,000 crore every year. ABG Shipyard manufactures marine ships, including bulk carriers, deck barges, interceptor boats, anchor handling supply ships, driving support ships, tugs and offshore vessels. The company is expected to double the size of its order book to Rs 10,000 crore in two years following cancellation of orders at various shipbuilding yards across the globe, including China.
Analysts suggest that the Indian yards have recently recorded new orders in the offshore services, a segment benefiting from expansion of companies engaged in oil and gas exploration. ���With huge order inflows last year, Indian companies are reasonably comfortable for the next few years and are focusing more on capacity expansions,��� said an analyst. Bharti Shipyard is also going for a major expansion plan.
A recent study suggests, about 17% orders for building new OSVs (offshore supply vessels) are with Chinese companies. But their delivery will be delayed, putting further pressure on vessel supply shortage and increasing demand. OSV comprises 45% of total order of new vessels.
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