ABG Western India Shipyard ltd nets a profit of Rs. 12.22 crores
The state’s largest private sector ship yard, the ABGWestern India Shipyard ltd seems to have turned the corner and raked in aprofit of Rs. 12.22 crores in 2011-12. This is the third year it has made aprofit since it commenced operation in 1993 though it is a 22.33% decrease inprofits from the last financial year, when it had generated a profit ofRs.15.34 crores.
Senior personnel said the operations were now on an evenkeel with repair work on the rise and the presence of this facility on animportant ship lane made it an attractive proposition. Set over 50,000 squaremtrs with 40,000 square mtrs of water area, the management said thatapproximately 30-40 vessels were being repaired every month and over 450vessels have been repaired since 1996. This financial year has been significantwith an oil rig Aban 3 being repaired at the cost of Rs. 52 crores. In additionwork on an Indian navy vessel INS Sujata generated billing worth another Rs. 76crores.
With regards to pricing in comparison to Dubai, Sri lankaand Cochin, the officials claimed they charged the client for their competenceand now with the emergence of China, as an alternate destination for shiprepairs, the market had gotten even more competitive. The global ship repairmarket is estimated to be worth US$ 10 to 12 billion with India’s share beingapproximately US$ 100 million.
The industry in India is growing at approximately 8% andlikely to reach Rs. 9,200 crore mark. The company is expecting to receive morebusiness from the Indian navy, coastguard, local transhippers, the casinos thatoperate in the state as well as work from its regular clients like DCI, ONGC,Reliance and PFS Shipping. A new job, from the Indian navy, is expected beforethis month is through. Keeping in mind the growing demands for their services,the company has written a letter to the port authorities seeking a secondfloating dry dock to repair smaller vessels at its existing facilities.
Senior personnel expressed their confidence stating thatwith the industry growing in the country, business can only increase.
