Dolphin dives into ship-building

Dolphin Offshore Enterprise (DOE) in Mumbai, India, is in negotiations with three Gujarat-based companies to acquire a shipyard. DOE is having discussion with Gujarat government owned Alcock Ashdown besides two privately held companies based in the state including one in Jamnagar.

DOE plans to invest $35 million in buying ships and a shipyard. The company forayed into shipping with its recent acquisition of Procyon, which owns seven harbour tugs and one offshore supply vessel. It plans to make this a 100% subsidiary and go for a public issue to raise money for running the shipping business.

It has already acquired two 6000-bhp vessels worth $4.5 million and invested $13.5 million for two ships that will be delivered by the end of next year. The rest of the amount will be invested in acquiring a construction barge and a shipyard.

DOE has been looking for diversification and shipping and ship building are two natural areas to expand into according to a spokesman for the company. It is also looking for developing its overseas business aggressively and tied up with Saudi Arabia based Saudi Aramco. Although the contribution of its overseas business is meager, it expects that, in next 3-4 years, it will contribute around 60% of total turnover. The company had a turnover of around Rs 180 crore last financial year and is aiming for 30% year-on-year growth.