August 22, 2008

Cochin Shipyard charts mega growth path

It is reported that Cochin Shipyard Limited has achieved a record 181,395 DWT in 2007 up by 65% YoY as against previous best of 110,206 DWT in 06. While, its income from shipbuilding, repairs and services stood at INR 720 crore up by 100% YoY and net profit stood at INR 58 crore up by 300% YoY.

However, Cochin Shipyard is yet to achieve its full potential and modernization & expansion plans are being made for building and repairing niche, high tech ships. Growth in skill sets and technical expertise will be its key competitive strength.

Mr M Jitendran CMD of Cochin Shipyard said that “Cochin Shipyard’s unprecedented growth in the last few years can be sustained by modernization and expansion into an international size shipyard. Further, the yard plans diversification into niche high tech products. Towards this end, CSL is preparing detailed plans for additional infrastructure and skills, both short term and long term, required in propulsion system, electronics and clean emission technology.”

He said that “The products under consideration for building and repair by CSL include high tech large crude oil tankers, high speed container ships, LPG, LNG, CNG carriers, chemical carriers, product carriers, electric propulsion and clean technology, specialized Naval auxiliary ships, modern dredgers and other products.”

Mr Jitendran added that “In ship repair, CSL’s aim is to diversify into offshore up gradation and conversion projects. A study is being undertaken to identify the facilities, expertise and skills required for undertaking such projects. Meanwhile the yard posted the highest ship repair income of INR 242 crore in the year 2006-07 up by 59% YoY. The yard has undertaken repairs on specialized oil rigs both Indian and foreign.”

At present, the shipyard has orders for 1 bulk carrier, 18 platform supply ships and one aircraft carrier. Other than the aircraft carrier, all other orders are for exports, with a value of around INR 2,000 crore.