'Sinking'
WISL is
for sale
ABG Shipyard has informed the Bombay Stock Exchange (BSE) that it has taken a decision to sell its subsidiary Western Indian Shipyard.
In a communication to BSE, ABG Shipyard said, “We would like to inform you that the board of directors at their meeting held on October 6th have decided and approved divestment of its subsidiary Western India Shipyard and authorised executive director and other company officials, jointly, to invite suitable bid from the prospective investor and negotiate the deal including the best price, terms and condition etc with them.”
From this communication, it appears that ABG Shipyard is yet to find a buyer for Western India Shipyard.
The much controversial Western India Shipyard remained in news throughout this year, as its workers protested for non-payment of their salaries.
Located at Mormugao Port Trust (MPT), Western India Shipyard was a major player in repair of cargo vessels, passenger vessels, naval vessels and oil rigs. But, it seems that lack of business due to downturn in shipbuilding industry had taken its toll on the company, as Western India Shipyard reported a net loss of Rs 39.4 crores for the year ending March 31, 2016 compared to Rs 34.7 crores in the previous year.
Interestingly, the parent company, ABG Shipyard, had hopes of turnaround as recent as March this year. ABG Shipyard had announced in March 2016 that Western India Shipyard would recommence its operations in Goa.
The issue of non-payment of salaries of Western India Shipyard’s workers and uncertainty looming large over their future was even raised in state assembly.
Certain workers of Western India Shipyard had even gone on a hunger strike, which was withdrawn only when the company paid due salaries, but only partly.
Meanwhile, BSE had even suspended trading in shares of Western India Shipyard because the company failed to comply with certain norms.
