to construct Rs 450 cr. shipyard (28 Feb 2005) By Madhu Chittora
A new shipyard with an investment of Rs 450 crore will be built
by ABG Shipyard Ltd. The work on this project will begin in September
this year, and the shipyard will be fully operational by 2008.
"Increase in input cost should be kept under control. This
is the biggest challenge in front of the shipbuilding industry,"
states Rishi Agarwal, Managing Director, ABG Shipyard Ltd. Today
ABG holds the pride of place as one of India's leading shipbuilders
in the private sector. The company is manufacturing 149 m chemical
tanker for Stav Tankers of Norway.
On the growth of the ship industry, Agarwal suggests, "Streamlining
of subsidies, better infrastructure and dedicated specialised marine
policies are some of the issues, which should be handled by the
government." The company has Rs 1,300 crore worth of orders
in hand. Out of this, 60 to 70 per cent are export orders from Europe
and Middle East. Some of the company’s clients are Lamnalco,
Indian Coast Guard and Sea Tanker, Norway. It supplies dynamic positioning
vessels, tankers and offshore vessels, pollution control ships,
cement carries and bulk carriers.
The shipping industry is dependent on lots of ancillary industries
which are in need of a boost, so that the industry can grow. Also,
the need is to ease import procedures and streamline the bank guarantee
procedures, affirms Agarwal. The worldwide shipping industry is
subsidised, but in India subsidisation should be streamlined for
disbursement. "The shipping industry should be classified as
an infrastructure sector, otherwise we will lose our competitive
advantage," he admits.
Currently, the company builds 23 ships and its capacity is 12 ships
per annum. Located at Magdala, Gujarat, the maximum size of the
ship that can be built at ABG Shipyard is 155 m in length and 20,000
dwt. Due to an increase in world trade, ship requirements have multiplied
tremendously. To meet the growing demand, it is necessary for shipyards
to function effectively.
Today, the industry is equipped with the latest technology for rapid
development. Regarding the strengths of the company, Agarwal points
out, "We are equipped with the latest technology for a very
high ship building activity. We are excelling in this field due
to better management." The industry's main focus is to improve
the quality and reduce the cost of ship construction and delivery
time. ABG is equipped with CNC underwater plasma cutting machine,
better painting system and other state-of-the-art facilities. The
company is targeting 30 to 40 per cent growth next year.
The cutting edge technology and the ability to provide customised
solutions are the hallmarks of ABG, a name to reckon with in the
maritime trade. Shipbuilding and ship repair services are provided
on turnkey basis—from concept to detail design, fabrication,
construction, installation and commissioning. The shipbuilding and
repair facility includes a large steel fabrication shop with sophisticated
steel processing, machineries, six building berths, ship lift, and
a dry dock with a large gantry crane.