Business Daily from THE HINDU group of publications
Friday, Sep 28, 2007
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Business Daily from THE HINDU group of publications Friday, Sep 28, 2007 ePaper |
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Stocks Markets - Stock Markets Logistics - Shipping
BL Research Bureau ABG Shipyard has demonstrated its ability to compete with international players after its financial closure of a Rs 1440-crore order from a German shipping company for constructing 12 handysize bulk carriers. The order, said to be one of the largest bagged by the company, would bring its current order book to Rs 7,121 crore. With mounting order book and stretched capacities, domestic shipyard companies face the risk of delays in execution. Internationally too, ship building players have been struggling to meet the mounting demand, given the lead time required to expand capacities. ABG Shipyard, which has been actively investing to overcome capacity constraints, has recently taken to inorganic route. While it is likely to receive a stake in shipping repair company Western India Shipyard, under a revival plan, the company had earlier acquired a strategic stake in Vipul Shipyard. This yard, located next to ABG’s facility in Surat would be utilised once Vipul’s orders (which stood at Rs 40 crore) is completed. This combined with ABG’s Dahej facility, which is likely to commence operations by April 2008, may accelerate the pace of execution over the next couple of years. ABG also announced that it received board approval to place 58.89 lakh shares with qualified institutional buyers. Funds from this route may also be used to expedite the organic and inorganic expansion ventures. More Stories on : Stocks | Stock Markets | Shipping
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