HSL aims turnaround by 2010

The struggling Hindustan Shipyard Ltd. (HSL), the oldest shipyard in the public sector in India, expects to make a turnaround by 2010. Rear Admiral (retired) Ajit Tewari said, “To my knowledge, there will be no takeover or privatisation as we are set to make a turnaround in the next five years.”

There had been reports that Larsen & Toubro Ltd., an engineering firm, would be taking over the company but HSL has denied this rumour. The company posted a turnover of Rs 237 crore in the 2004-05, against Rs 126 crore in 2003-2004.

HSL, which was set up in 1942, is likely to make a net profit of Rs 2 crore for the first time in many years in 2005-06. The shipyard has orders worth Rs 1,153 crore in the current financial year and it is likely to achieve Rs 1,500 crore by end of December. “With the existing orders, we will be busy till 2010 and during the next five years we hope to build five ships in a year,” Admiral Tewari said.

In April last year, Good Earth Marine placed orders worth Rs 780 crore for the construction of six 53,000 DWT bulk carriers and this was followed by the Indian Navy which ordered submarine repairs and refit worth Rs 550 crore in October. Good Earth Marine signed its first agreement with HSL in 2004, for the construction of four 30,000 DWT carriers worth Rs 380 crore. HSL is hoping to secure orders from the Indian Coast Guard worth Rs 340 crore.