Dempo Group’s shipbuilding arm Dempo Shipbuilding & Engineering Pvt Ltd (DSEPL) has said it has acquired a majority stake of 74 per cent in Modest Infrastructure Ltd. MIL is a player in the shipbuilding and ship repairs space in Bhavnagar, Gujarat. The acquirer, however, did not disclose the financial consideration of the deal.
The six-year-old MIL, flagship company of Modest Group, has developed technical expertise in building vessels such as product tankers, cement carriers, offshore supply and survey vessels of size up to 6,000 dwt (dead weight tonnage). Apart from the shipyard at Ramsar (Bhavnagar), MIL is in the process of developing a new shipyard at Ratanpar, about 20 km from Bhavnagar, with the capability of building and repairing ships up to 50,000 dwt, according to a release here.
DSEPL, which has been into shipbuilding and ship repairs for over four decades, builds and repairs inland and seagoing vessels of size up to 3,500 dwt. With this acquisition and the upcoming shipyard, DESPL will be able to cater to both international and domestic markets with bigger and technologically advanced vessels to become a leading shipbuilding organisation in India, said Chairman Shrinivas Dempo.
The company expects to generate a topline of about Rs 1,500 crore in the next 5 to 7 years, he said.
KPMG Corporate Finance was the exclusive financial advisor to the
Dempo Group whereas J. Sagar & Associates and Fortitude Law Associates were the legal advisors for the transaction.