Indian yards seek to expand

ABG Shipyard in India has bid for two shipyards on the western coast, state-run Alcock Ashdown (Gujarat) Ltd. and Western India Shipyard Ltd.. In May, it bought unlisted Vipul Shipyard. Its competitor, Bharati Shipyard Ltd., had also shown interest in Alcock Ashdown and Western India Shipyard.

“There is a pressing need for expansion,” Bharati?s managing director Kapoor said. His firm bought the entire machinery of the 130-year-old Swan Hunter (Tyneside) Shipyard in England earlier this year. With overseas orders making up 65-70% of its 40-billion-rupee order book, Bharati is on the lookout for yards in India and Southeast Asia.

Last month, India’s Larsen & Toubro was one of the 15 companies to show interest to develop a repair yard and dry complex in Oman. It also plans to spend about 20 billion rupees to start a shipbuilding yard in India.

This month, engineering and construction firm Punj Lloyd Ltd. said it plans to invest 4.03 billion rupees to buy 25.1% stake in Pipavav Shipyard Ltd., saying it was a strategic investment to support its business in the offshore sector.

Besides engineering firms, private equity investors are also eyeing yards. Earlier this year, India Advantage Fund-VI bought 53% in unlisted Tebma Shipyards Ltd.