Mercator's Mittal family enters shipbuilding business

MUMBAI: Sea transportation services provider Mercator Lines has entered the shipbuilding business and is building two yards in Maharashtra and Gujarat at Rs 15,00 crore.

Mercator Lines, promoted by the H K Mittal family, has ventured into the shipbuilding business in association with Maharashtra-based Mech Marine Engineers.

"Two shipbuilding yards, one each in Maharashtra and Gujarat, would be built at an investment of Rs 1,500 crore," a source close to the development told media here on Thursday.

Mittal's family owns about 60 per cent in the shipbuilding company, with the remaining 40 per cent held by Mech Marine Engineers.

Construction work of a yard at Maharashtra's Palghar has begun. The shipbuilding company has acquired 70 acre and is looking for 130 acre more. "We have signed a Memorandum of Understanding with the existing land owners," the source said.

By April 2008, a new bitumen tanker would roll out of the Palghar shipbuilding yard. The shipbuilding yards would make specialised offshore vessels, jack-up rigs and chemical tankers.

In Gujarat, the company has zeroed in on Vansi Borsi to set up a yard. About 145 acre of land would be required for setting up this shipping yard.

"Acquisition of land is in process in Gujarat. In 3-4 months, construction work would begin," the source said.