MIRA
INFORM REPORT
|
Report Date : |
23.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
PIPAVAV DEFENCE AND OFFSHORE ENGINEERING COMPANY LIMITED (w. e. f.
29.09.2011) |
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Formerly Known As : |
PIPAVAV SHIPYARD LIMITED (w. e. f. 19.04.2005) PIPAVAV SHIP DISMANTLING AND ENGINEERING LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
17.10.1997 |
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Com. Reg. No.: |
04-033193 |
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Capital Investment / Paid-up Capital : |
Rs. 6657.984 Millions |
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CIN No.: [Company
Identification No.] |
L35110GJ1997PLC033193 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
mump27060F |
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PAN No.: [Permanent
Account No.] |
AABCP1491L |
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Legal Form : |
Public Limited Liability Company. The company shares are listed to the
stock exchange. |
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Line of Business : |
Engaged in Commercial Shipbuilding, Ship Repair, Offshore Fabrication and
Servicing and Naval Shipbuilding and Repair. |
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No. of Employees : |
3000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (48) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 69704556 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. There
appears some accumulated losses recorded by the company. However, with some
improvement in profit the company can wipe off those losses in near future. Trade
relations are reported as fair. Business is active. Payments are reported as
fair. Business is active. Payments are reported to be usually correct and as
per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DENIED BY
|
Name : |
Mr. Vineet Kulkarni |
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Designation : |
Secretary |
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Date : |
22.05.2012 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-2794-286200 / 201 / 661000 |
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Fax No.: |
91-2794-286373 / 661100 |
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E-Mail : |
careers@pipavavshipyard.com company.secretary@pipavavshipyard.com nileshkmehta@gmail.com |
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Website : |
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Corporate office : |
SKIL House, 209, |
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Tel. No.: |
91-22-66199126 / 6619 9000 |
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Fax No.: |
91-22-67158099 / 2269 6022 / 2265 9939 |
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SEZ Units : |
Village Rampara
–II, Taluka Rajula and Village Lunsapur, Taluka Jafrabad, District – Amreli –
365560, |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Nikhil Prataprai Gandhi |
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Designation : |
Chairman |
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Address : |
38, Sagar Villa, |
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Date of Birth/Age : |
25.04.1958 |
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Qualification : |
B.Com |
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Date of Appointment : |
17.10.1997 |
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Name : |
Mr. Ramaswamy Muthu Venkataraman |
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Designation : |
Nominee Director, EXIM Bank, Independent Director |
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Address : |
1504, Wallace Apartment, |
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Date of Birth/Age : |
16.07.1946 |
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Date of Appointment : |
19.12.2003 |
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Date of Ceasing : |
25.04.2011 |
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Name : |
Mr. Venkiteshwaran Subramanian |
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Designation : |
Independent Director |
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Address : |
A/7 and 2, Lloyds Garden, 7th Floor, Appasaheb Marthe Marg,
Prabhadevi, Worli, Mumbai-400025, |
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Date of Birth/Age : |
22.01.1941 |
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Qualification : |
B.Sc. with Physics and Mathematics – 1960, Bombay
University. LL.B, Bombay University. |
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Date of Appointment : |
18.09.2007 |
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Directorships
held on other companies : |
·
Dolphin Offshore Enterprises (India) Limited. (also
Vice Chairman of the ·
company) ·
Dolphin Offshore Shipping Limited. ·
Indian Register of Shipping ·
Mahagujarat Chamunda Cements Company Private
Limited. ·
Mundra Port And Special Economic Zone Limited. ·
National Securities Clearing Corporation Limited. ·
The Clearing Corporation of India Limited. ·
Pandi Correspondents Private Limited. |
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Name : |
Mr. Ramunni Menon Premkumar |
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Designation : |
Independent Director |
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Address : |
101, Praneet, Dr. Jayant Palkar Marg, Worli, Mumbai-400030, |
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Date of Birth/Age : |
16.08.1945 |
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Date of Appointment : |
15.07.2008 |
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Name : |
Mr. Ajai Vikram Singh |
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Designation : |
Independent Director |
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Address : |
Bafhsuri House, |
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Date of Birth/Age : |
04.07.1945 |
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Date of Appointment : |
15.07.2008 |
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Name : |
Mr. |
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Designation : |
Independent Director |
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Address : |
C-15, DGS Co-Operative Housing Society, Plot No. 6, Sector 22, Dwarka,
Delhi-110075, |
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Date of Birth/Age : |
18.06.1944 |
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Date of Appointment : |
15.07.2008 |
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Name : |
Mr. Bhavesh Prataprai Gandhi |
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Designation : |
Executive Vice Chairman |
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Name : |
Mr. David Rasquinha |
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Designation : |
Nominee Director, EXIM Bank, Independent Director |
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Date of Appointment : |
25.04.2011 |
KEY EXECUTIVES
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Audit Committee |
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Name : |
Mr. Ramunni Menon Premkumar |
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Designation : |
Chairman |
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Name : |
Mr. Ajai Vikram Singh |
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Designation : |
Member |
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Name : |
Mr. Bhavesh Prataprai Gandhi |
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Designation : |
Member |
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Name : |
Mr. David Rasquinha |
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Designation : |
Member |
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Name : |
Ramaswamy Muthu Venkataraman |
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Designation : |
Member |
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Name : |
Mr. Venkiteshwaran Subramanian |
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Designation : |
Member |
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Name : |
Mr. |
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Designation : |
Member |
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Shareholder’s
and Investors’ Grievances Committee |
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Name : |
Mr. Nikhil Prataprai Gandhi |
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Designation : |
Chairman |
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Name : |
Mr. Bhavesh Prataprai Gandhi |
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Designation : |
Member |
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Name : |
Mr. Venkiteshwaran Subramanian |
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Designation : |
Member |
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Remuneration
Committee |
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Name : |
Mr. Venkiteshwaran Subramanian |
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Designation : |
Chairman |
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Name : |
Mr. Nikhil Prataprai Gandhi |
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Designation : |
Member |
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Name : |
Mr. Ramunni Menon Premkumar |
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Designation : |
Member |
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Name : |
Mr. |
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Designation : |
Member |
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Name : |
Mr. Ajit Dabholkar |
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Designation : |
Company Secretary and Compliance officer |
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Address : |
D/801, |
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Date of Birth/Age : |
19.06.1965 |
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Date of Appointment : |
21.03.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
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299576180 |
43.34 |
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(B) Public
Shareholding |
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12506684 |
1.81 |
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31201922 |
4.51 |
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21942696 |
3.17 |
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53037037 |
7.67 |
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10000000 |
1.45 |
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179143693 |
25.92 |
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20418600 |
2.95 |
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18870730 |
2.73 |
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|
890164 |
0.13 |
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34300 |
-- |
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675882 |
0.10 |
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42900000 |
6.21 |
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|
500 |
-- |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
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-- |
-- |
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-- |
-- |
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Total |
691198388 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionBUSINESS DETAILS
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Line of Business : |
Engaged in Commercial Shipbuilding, Ship Repair, Offshore Fabrication
and Servicing and Naval Shipbuilding and Repair. |
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Exports : |
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Products : |
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Countries : |
European Countries |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
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No. of Employees : |
3000 (Approximately) |
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Bankers : |
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Facilities : |
Notes: 1)
The term loan from Banks and Financial
Institutions referred to above are secured by way of first charge and
mortgage on all the immovable properties of the Company, both present and
future and hypothecation of all movable properties of the Company, both present
and future, except book debts and stocks which are subject to the prior
charge to secure working capital requirements. 2)
Short Term Loans from Banks referred to above
includes: a) Rs. 10,00.000 Millions secured by way
of subservient charge on current assets of the company, b) Rs. 20,00.000 Millions secured by way
of subservient charges on Fixed assets of the Company, c) Rs. 5,00.000 Millions secured by way of
first charge on the current assets of the company and second charge on Fixed
Assets of the company. d) Rs. 7,65.000 Millions secured against
FDR's pledged by the Company. 3)
All term loans and short term loans of Rs.
25,00.000 Millions are guaranteed by a promoter group company. 4)
Term Loans of Rs. 79,77.349 Millions and short term
loans of Rs. 35,00.000 Millions are guaranteed by some of the directors in
their personal capacity. 5)
Vehicle Loans are secured by Hypothecation of the
specific vehicles financed.
* Includes Rs.
31,91.100 Millions (Previous Year: Rs. 8,85.180 Millions) for operations and
Rs. 1,41.518 Millions (Previous Year: Rs.1,03.215 Millions) relating to
discounting of letter of credits / buyers credit for the project. Note: Each Compulsorily
and Mandatorily Convertible Debenture will be converted into one fully paid
up Equity share of the company of Rs. 10/- each on completion of one year
from the date of allotment i.e. May 19, 2010. |
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Banking
Relations : |
-- |
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Auditors : |
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Name 1: |
M. A. Shah and Company Chartered Accountants |
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Address : |
A-1, Sindhi Niwas, |
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Statutory Auditors : |
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Name 2: |
Chaturvedi and Shah Chartered Accountants |
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Address : |
912-913, Tulsiani Chambers, 212, Nariman point, Mumbai – 400 021, |
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Subsidiary : |
E Complex Private Limited |
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Associates : |
SKIL Infrastructure Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
800,000,000 |
Equity Shares |
Rs.10/-each |
Rs.8000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
665,798,388 |
Equity Shares |
Rs.10/- each |
Rs. 6657.984
millions |
Note:
25,400,000 Equity shares of Rs. 10/- each fully paid up will
be alloted to the holders of 10% Compulsorily and Mandatorily Convertible Debentures
on the conversion of these debentures and 25,221,612 Equity shares of Rs. 10/-
each fully paid up will be alloted on the exercise of the option by the equity
share warrant holders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
6657.984 |
6657.984 |
5803.481 |
|
|
2] Share Application Money |
625.496 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10250.156 |
10365.001 |
6747.284 |
|
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4] (Accumulated Losses) |
(107.497) |
(506.457) |
0.000 |
|
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NETWORTH |
17426.139 |
16516.528 |
12550.765 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
15096.900 |
11310.759 |
7745.899 |
|
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2] Unsecured Loans |
5110.618 |
1988.395 |
3790.142 |
|
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TOTAL BORROWING |
20207.518 |
13299.154 |
11536.041 |
|
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DEFERRED TAX LIABILITIES |
79.420 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
37087.581 |
29815.682 |
24086.806 |
|
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APPLICATION OF FUNDS |
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|
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|
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|
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|
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FIXED ASSETS [Net Block] |
12249.948 |
10482.814 |
419.885 |
|
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Capital work-in-progress |
14751.799 |
13883.821 |
21560.191 |
|
|
|
|
|
|
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INVESTMENT |
419.652 |
267.569 |
665.505 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2453.479
|
1330.232
|
3182.929
|
|
|
Sundry Debtors |
2049.933
|
70.180
|
0.000
|
|
|
Cash & Bank Balances |
4256.256
|
6400.908
|
6617.999
|
|
|
Other Current Assets |
4344.718
|
3484.350
|
0.000
|
|
|
Loans & Advances |
4831.270
|
2971.683
|
2550.927
|
|
Total
Current Assets |
17935.656
|
14257.353
|
12351.855
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1942.986
|
1563.767
|
1998.692
|
|
|
Current Liabilities |
4689.253
|
6026.070
|
8790.422
|
|
|
Provisions |
1011.739
|
1486.038
|
121.516
|
|
Total
Current Liabilities |
7643.978
|
9075.875
|
10910.630
|
|
|
Net Current Assets |
10291.678
|
5181.478
|
1441.225
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
37713.077 |
29815.682 |
24086.806 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
|
|
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||
|
|
|
Income |
8599.308 |
6293.826 |
0.000 |
|
|
|
|
Other Income |
633.651 |
675.066 |
617.780 |
|
|
|
|
TOTAL (A) |
9232.959 |
6968.892 |
617.780 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Purchase of Traded Goods |
2575.880 |
947.715 |
0.000 |
|
|
|
|
Raw Materials Consumed |
2828.320 |
1693.191 |
0.000 |
|
|
|
|
Manufacturing Expenses |
911.537 |
1634.619 |
0.000 |
|
|
|
|
Payments to and provisions for Employees |
273.993 |
216.285 |
76.769 |
|
|
|
|
Administrative, Selling and Other Expenses |
260.685 |
738.809 |
313.967 |
|
|
|
|
Increase/(Decrease) in Inventories |
223.506 |
1129.430 |
0.000 |
|
|
|
|
TOTAL (B) |
7073.921 |
6360.049 |
390.736 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2159.038 |
608.843 |
227.044 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
1190.063 |
729.992 |
129.580 |
||
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
968.975 |
(121.149) |
97.464 |
||
|
|
|
|
|
|
||
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
487.326 |
365.473 |
1.525 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX (E-F) (G) |
481.649 |
(486.622) |
95.939 |
||
|
|
|
|
|
|
||
|
Less |
TAX (I) |
83.934 |
1.583 |
46.700 |
||
|
|
|
|
|
|
||
|
|
PROFIT AFTER TAX
(G-I) (J) |
397.715 |
(488.205) |
49.239 |
||
|
|
|
|
|
|
||
|
Add |
PRIOR PERIOD
ITEMS (NET) |
1.245 |
(20.735) |
(5.001) |
||
|
|
|
|
|
|
||
|
Add |
BALANCE BROUGHT
FORWARD |
(506.457) |
2.483 |
(41.755) |
||
|
|
|
|
|
|
||
|
|
BALANCE CARRIED
TO BALANCE SHEET |
(107.497) |
(506.457) |
2.483 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
3922.810 |
660.192 |
2201.170 |
|
|
|
|
Stores and Spares |
30.156 |
25.516 |
- |
|
|
|
|
Capital Goods |
94.156 |
86.067 |
2329.831 |
|
|
|
TOTAL IMPORTS |
4047.122 |
771.775 |
4531.001 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
0.60 |
(0.82) |
0.08 |
||
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3383.380 |
4498.300 |
4513.860 |
|
Total Expenditure |
2717.030 |
3486.040 |
3526.040 |
|
PBIDT (Excl OI) |
666.350 |
1012.260 |
1087.820 |
|
Other Income |
65.660 |
65.380 |
99.190 |
|
Operating Profit |
732.010 |
107764 |
1187.010 |
|
Interest |
430.410 |
627.360 |
690.720 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
301.600 |
450.280 |
496.290 |
|
Depreciation |
179.290 |
292.280 |
295.140 |
|
Profit Before Tax |
122.300 |
158.000 |
201.150 |
|
Tax |
42.870 |
63.900 |
61.370 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
79.430 |
94.110 |
139.780 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
79.430 |
94.110 |
139.780 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.31
|
(7.00)
|
7.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.60
|
(7.73)
|
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.60
|
(1.97)
|
0.75 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
(0.02)
|
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.60
|
1.35
|
1.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.35
|
1.57
|
1.13 |
LOCAL AGENCY FURTHER INFORMATION
sUNDRY cREDITORS:
(Rs.
in Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
Due to Micro
small and Medium Enterprises |
45.866 |
6.154 |
8.539 |
|
Due to Others |
1897.120 |
1557.613 |
1990.153 |
|
Total |
1942.986 |
1563.767 |
1998.692 |
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter's background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if
applicable) |
Yes |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
-- |
change of address:
The Registered Office of the company was 904, Shukan Tower, Near Judges
Bunglow, police Chowky, Bodakdev,
Ahmedabad – 380 009, Gujarat change to present registered address w.e.f
27.10.2006.
OPERATIONS
During the year, the Company has recorded total income of Rs.
9232.900 Millions, showing an increase of 32.49% as compared to the income of
Rs. 6968.900 Millions during the previous financial year. The Company earned
profit before tax of Rs. 481.600 Millions, as against loss of Rs. 486.600
Millions for previous year.
During the year the Company completed construction of its two
new built 74,500 DWT Panamax Vessels. The detailed information on all business
activities of the Company is provided in the Management Discussion and Analysis
Report.
CONVERTIBLE WARRANTS
Pursuant to the special resolution passed by the Members of the
Company at the Extraordinary General Meeting held on September 7, 2010, the
Company has issued 2,52,21,612 convertible Warrants on preferential basis to
SKIL Infrastructure Limited, promoters of the Company, at a price of Rs. 99.10,
for raising funds to meet the capex requirement of the Company and for general
corporate purposes. Each warrant is convertible into one fully paid-up equity
share of face value of Rs.10/- each, at any time prior to 18 months from the
date of allotment of warrants.
SUBSIDIARIES
The Company has one wholly owned subsidiary namely E Complex
Private Limited (“ECPL”). This subsidiary is in the business of development of
Special Economic Zones (“SEZ”). ECPL has developed a sector specific SEZ for
engineering goods/ sector at Village Rampara II, District Amreli, in the State
of Gujarat.
During the financial year 2010-11, ECPL has earned revenue of
Rs. 119.700 Millions and posted net profit (after tax) of Rs. 39.600 Millions.
General Exemption:
The Ministry of Corporate Affairs has granted general
exemption vide its General Circular No. 2/ 2011 dated February 8, 2011 under
Section 212(8) of the Companies Act, 1956 (“the Act”) to companies from not
attaching the accounts and related documents of subsidiaries in their Annual
Report, subject to fulfillment of certain conditions prescribed therein. The
Company has complied with all the conditions mentioned in the said circular.
Accordingly, the Balance Sheet, Profit and Loss Account, Directors’ Report and
Auditor’s Report of its subsidiary company have not been attached to this
Report.
Pursuant to Accounting Standard 21 issued by the Institute of
Chartered Accountants of India, Consolidated Financial Statements presented by
the Company include the financial information of its subsidiary company. A
statement of key financials of the subsidiary company is also included in this
Annual Report.
Further, the
Annual Accounts of its subsidiary company will be made available upon written
request by any Member of the Company. The Annual Accounts of the subsidiary
company will be made available at the Company’s website and will also be
available for inspection at the Registered Office of the Company and its
subsidiary.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The industry in which the Company operates can be broadly sub-classified
into the following segments viz. (a) Defence Shipbuilding, (b) Offshore Oil and
Gas Exploration and Production Assets Construction, (c) Commercial Shipbuilding
and Repairs, (d) Defence hardware and services required by Indian Armed Forces,
and (e) Heavy Engineering.
Defence
Shipbuilding
Global aspirations of economically strong India, with ever increasing
geopolitical challenges have made the Indian Government realize the imperative
need to strengthen its defence capabilities. The Government through its Defence
and to create an indigenous network of suppliers. The opportunities that the
DPP presents to the domestic players are vast and domestic companies that meet
the necessary demands of the Indian Navy will benefit the most.
India sits in a prime position in the Indian Ocean, with over 7,517 kms.
of coastline. Indian sea trade accounts for approximately 90% of volume and 77%
of value of India’s aggregate trade. Maritime interests are crucial for
establishing a secure tomorrow, as the economy is dependent on the sea for
sectors such as Oil and Gas exploration and production, Commercial trade, etc.
Protecting maritime assets is an imperative for the Indian Navy and Coast
Guard. The Government is continuously making efforts to ensure naval security
in the Indian Ocean, which ultimately will lead to demand for better quality
defence vessels.
The present fleet of Indian Navy has approximately 171 ships on active
duty with an additional 36 ships in the process of being built. The Indian Navy
needs over 100 ships of diverse variety, including submarines, destroyers,
patrol vessels, etc. over the next two decades, according to reports available
in public domain. There is a need for domestic players to demonstrate
technologically advanced capabilities and utilize effective cost
rationalization methods which will open up a huge opportunity for them. The DPP
encourages private domestic players to bid for acquisition programmes of
defence vessels. In line with the DPP you would be glad to know that the
company became the first private sector company post independence to enter this
sector when it was awarded with the contract for construction of 5 warships
viz. Naval Offshore Patrol Vessels worth Rs. 2,9750.000 Millions by the Indian
Navy.
The theme of the DPP is “Buy Indian, Make Indian”. The DPP will continue
to provide a tremendous boost to domestic players in this segment and will
ensure that the Country becomes self sufficient in all its defence
requirements. It will also ensure, over a period of time, the acquisition and
transfer of advanced technology to Indian companies further reducing our
dependence on imports.
The Union Budget presented in Parliament by the Finance Minister, Pranab
Mukherjee, highlights the importance of defence and increased allocation to the
sector to Rs. 1644150.000 Millions. The allocation represents a growth of 11.9%
year-on-year basis. In terms of capital expenditure, the Navy will utilize
approximately Rs. 146570.000 Millions. The growth of 11.9% year-on-year in the
defence budget has shown the Government’s desire to strengthen the nation’s
armed forces, particularly with regard to the modernization of facilities and
equipment.
Offshore Oil and
Gas Exploration and Production Assets Construction
Demand for petroleum and liquid fuels will reach 95 million barrels per
day by 2015 and 118 million barrels a day by 2030 from the current level of 84
million barrels per day. Emerging markets demonstrating strong economic growth
will contribute significantly to oil demand. Investment in the development of
the offshore oil and gas exploration and production assets is expected to reach
USD 45 billion in 2011. National oil companies have leaned towards developing
offshore assets to meet oil and gas demands. Rising crude oil prices,
exacerbated by the crisis in the Middle East, will subsequently lead to greater
exploration activity and establishment of more offshore assets in the coming
decade.
To prevent the country from becoming dependent on foreign oil subject to
volatile fluctuations in the global market, the development of offshore oil and
gas facilities has been made a priority by the Indian Government.
The Government is exploring opportunities to meet the domestic demand of
oil through domestic supply by encouraging the development of modern offshore
assets.
The energy demand is expected to grow fourfold in the next two decades.
The Government is stepping up its offshore oil and gas programme. The inability
of aging offshore structures i.e. rigs and platforms to operate in deeper water
posts an advantage for businesses that can create new generation efficient
offshore structures. Heavy Engineering companies with access to waterfront will
be better suited to develop modern offshore structures. Globally, more than 75%
of rigs were constructed before 1985, which indicates that most rigs will need
to be replaced in the next decade. As it becomes more expensive to purchase
such offshore structures in Middle East and East Asian countries, economies
have been considering low cost destinations like India and many orders may be
diverted to Indian builders. Lastly, the demand for supply vessels to offshore
structures is increasing significantly. Close to 50% of the Indian offshore
support fleet is over 20 years old and is not capable of servicing requirement
of deep water rigs and platforms. With the advent of deep water offshore
structures, the safety and technological capacity of existing offshore supply
vehicles will need to be improved.
All in all, greater demand for oil and gas from emerging markets like
India has resulted in the need to develop domestic sources of supply of energy
and curtail the dependency on foreign markets for imports, thus preserving the
country’s security.
Commercial
Shipbuilding and Ship Repair
Global Scenario
While the global shipbuilding outlook until 2011 looked subdued, it is
expected that the commercial shipbuilding industry will turnaround by FY
2012-13.
Global trends show a demand for larger vessels as the pursuit of
economies of scale drives businesses to demand both bigger and fuel efficient
ships. Since ships that can carry larger cargoes translate into lower cost of
transport, companies that are able to deliver large vessels will benefit. There
is also a demand in niche sectors. For example, increased requirements for
dredging have translated into demand for dredgers. Similarly the emergence of
LNG as a substitute for coal is resulting in a demand for LNG Carriers.
Increased spending on infrastructure and subsea pipelines is resulting in
greater demand for Heavy Lift Vessels. Companies like the capable of
manufacturing these specialised vessels would gain from this demand.
Indian Scenario
According to the Maritime Agenda 2011, there are currently 27 prominent
shipyards in the country, of which 8 are in the public sector. India advanced
from 0.1% of the world share of shipbuilding in 2002 to approximately 1.5% in
2010. With respect to the shipbuilding and ship repair industry, the
Government of India’s vision is:
“To have a well developed shipbuilding and ship repair industry of
international standard in India which will be self-sufficient in building and
repairing commercial vessels required by the country by 2020 and generate huge
investment and employment opportunities.”
The Ministry of Shipping has set several targets that they wish to meet
by 2020, which include gaining 5% of the global market share of commercial
shipbuilding, developing a strong ancillary industry, strong research and
development facilities, to be self-sufficient in any domestic repair
requirements and become a prominent ship repair center in the Indian Ocean.
The goals to which the Government is aspiring provide a myriad of opportunities
for the Indian maritime companies that will inevitably translate into greater
profitability.
Labour cost accounts for relatively 10% of shipbuilding cost. India
boasts availability of trained manpower in heavy engineering and shipbuilding
sector with a strong base of intellectual capital. India commands a natural
advantage in terms of skilled labour and technological capacity for
shipbuilding business and oil and gas assets, a benefit it has over other
countries that may have lower labour costs but lack in quality technology and
infrastructure.
Globalization has led to the wide dispersal of technology to emerging
markets from developed countries. The Company’s infrastructure is in line with
Korean and Japanese counterparts in terms of quality. Secondly, as foreign
companies are eager to enjoy the benefits of operating in a low cost country
like India, the potential for strategic partnerships has never been greater
leading to further improvement and construction of quality vessels.
India enjoys a strategic location in the Indian Ocean. India’s long
coastline provides suitable locations for setting up ship-repair facilities.
India’s prominence in the region as an emerging power strengthens India’s
position in commercial shipbuilding and ship repair.
Defence Hardware
and Services for the Indian Armed Forces
As mentioned earlier, the opportunities in the defence segment are vast
and the Company looks forward to capture all the opportunities offered in this
space. The Company is in the process of augmenting its reach through entire
defence segment and establishing itself as a significant player.
Heavy Engineering
The heavy engineering sector offers huge potential for growth. The Government
of India is going to great lengths to develop and strengthen the industry as
well as build up and maintain a robust infrastructure network.
The prospects for the aerospace segment, robotics, wartime machinery
such as tanks, and demands to modernize and contextualize the armed forces for
the 21st century create great opportunities for heavy engineering segment.
OPPORTUNITIES AND
THREATS
OPPORTUNITIES
Defence Procurement Policy:
Indian’ category in its Defence Procurement Policy. It is aimed at
promoting production of defence equipment by capable Indian companies.
Shortlisted Indian companies can arrange co-production and/ or technology
transfers with foreign companies. The company is ideally positioned to gain
from the Government’s emphasis on self reliance in the defence production
sector.
Rising demand for naval defence:
In view of global aspirations of economically strong India, ever
increasing geo-political challenges and the need for antipiracy operations in
the Indian Ocean, the Indian Navy and Coast Guard are being modernized for
safeguarding our maritime interests. Moreover, the scope of naval defence is
further widened by providing support to maritime neighbors during natural
disasters. This will require a massive as well as rapid expansion of our Naval
and Coast Guard fleet.
There is a huge replacement/ refurbishment demand for defence vessels.
There can be no substitute for meeting these requirements locally. It is
towards this end the Company has commissioned India’s most technologically
advanced infrastructure geared for construction/ repair of the most
sophisticated warships including aircraft carriers, submarines, landing
platform docks, patrol vessels and other naval products.
Large replacement demand:
About 40% of the commercial fleet is more than 20 years old and Indian
ship owners are expected to spend approx. USD 4 billion to replace these during
FY 2010-2015. The ageing fleet of shipping companies in India is another factor
energizing prospects for the commercial shipbuilding and repair market in the
country.
Huge demand in the offshore oil and gas sector:
In India, the demand for high-end offshore facilities such as drill
ships and floating production storage platforms amounts to approximately USD
20-40 billion. With the oil prices on a rise, the importance of this sector is
building up. The increase in the demand for offshore assets would lead to
consequential increase in demand of Offshore Supply Vessels (“OSVs”) required
to service them. Furthermore, higher production cost of OSVs in other countries
such as Japan may result in diversion of orders to India, consequently creating
huge prospects for the Company. The Company has established itself in this area
through its current construction programme of OSVs.
Inorganic opportunities:
The Company is looking for acquisitions, strategic partnerships, tie-ups
with overseas companies catering to the Oil and Gas and Defence sectors. The
huge opportunities in these sectors increase the scope of tie-ups between
Indian and overseas players, as foreign players look to combine their
technology with cost effective Indian partners.
Threats
Fluctuations in the raw materials costs:
The volatility in the prices of raw materials may weigh on profitability
of the Company.
Subsidy:
In the past the Indian Government had encouraged participation of Indian
companies in the commercial shipbuilding sector by providing subsidies of 30%
of the price of the vessel to the shipbuilders. The Government is considering
extension of the shipbuilding subsidy scheme. However, in the event the
Government of India decides not to notify a new subsidy scheme, it could affect
the profitability of this segment.
No Steady Order Flow and probable Order Cancellations:
The Company has an outstanding order book of around USD 1.5 billion. In
view of the difficult economic conditions worldwide the momentum of orders
being sustained is a concern. The possibility of orders cancellation can not be
denied.
Shortage of specialized labour in the Maritime Sector:
Increasing sophistication of vessels and associated equipment as well as
stringent pollution prevention norms in the maritime sector have led to greater
importance on a well-designed education system for the maritime sector. Lack of
such maritime institutes imparting the necessary knowledge creates a shortage
of skilled technical force in India.
OUTLOOK
The financial year 2010-11 was a year of milestones for the Company. In
November 2010, the Company was awarded the Warship Production License by the
Department of Policy and Promotion, Ministry of Commerce and Industry,
Government of India. The Company is the first Indian Company to have been
awarded the license. The Company entered into strategic partnerships with SAAB
Dynamics, Northrop Grumman and Babcock group. These tie-ups will allow the
Company to use their technical expertise to indigenously produce defence
equipment, hardware and develop aeronautical technology.
Going forward, the FY 2011-12 will mark the progress of the Company
after all the key pillars have been established. As the Company has received
the Warship Production License, the Company is ready for a new and exciting
year of growth. Two Panamax vessels built by the Company are ready for
delivery.
The Company will continue to develop global standards in capabilities,
technology and size. The order book is expected to grow multi-fold on the back
of increasing defence demand, greater demand for offshore assets, and the
significant need for repair for vessels visiting/ passing through Indian waters.
The Company is also well-poised with modern heavy engineering facilities to
undertake both civil and non-civil heavy engineering projects, whether be the
construction of civil nuclear reactors or land based heavy defence machinery
such as tanks. With offshore activities shifting to deeper waters and
increasing demand from the naval sector, Indian industry will undergo a dynamic
change in the coming years.
Having invested in state of the art facilities and having developed a
world-class heavy engineering infrastructure with attached dry dock, the
Company stands at the forefront of private sector companies ready to capitalize
on increased opportunities provided in the defence and offshore oil and gas
assets space and is set to experience robust growth and profitability going
forward.
Fixed Assets:-
· Plant and Machinery
· Computers
· Office Furniture and Equipments
· Vehicles
·
· Software
PRESS RELEASE
PIPAVAV, MAZAGAON
DOCK TO SET UP JV; TO BUILD WARSHIPS FOR NAVY
ET
BUREAU MAY 4, 2012, 03.40AM IST
MUMBAI: Nikhil Gandhi-promoted Pipavav Defence and Offshore Engineering has been selected by Mazagon Dock as preferred partner for a joint venture that will look to build warships and submarines for Indian Navy. Mazagon Dock is India's biggest defence shipyard and accounts for more than 85% of the defence vessels built in the country.
The joint venture, which was earlier announced in September 2011, was put on hold by the ministry of defence due to allegations from Pipavav's rivals over selection policy.
"The government of India has conveyed, vide its letter dated May 2, 2012, that Pipavav Defence and Offshore Engineering Co Limited has been chosen as its partner for formation of joint venture to build warships for Indian Navy," Pipavav said in a statement to BSE.
In September last year, immediately after the announcement of the deal, Pipavav's rivals, including the country's largest infrastructure company, L and T, and India's largest private shipyard, ABG Shipyard, had complained to the ministry about discrepancies in the selection process followed by Mazagon.
They had complained separately to the ministry that the state-owned shipyard had set no deadlines for submitting the proposals and did not disclose the evaluation criteria. Following the allegations, the ministry deferred the deal until a new policy on joint ventures was put in place and said it would study the complaints received from private shipyards.
"The issue needs to be fully examined and settled," the defence minister had said. In February, the defence ministry issued new policy guidelines for establishing joint venture companies by defence undertakings and the provisions included the retention of affirmative right of a state-owned defence firm for prior approval of key decisions of the JV company such as amendments to memorandum of association or articles of association or restructuring of the JV by issue or buy-back of shares.
The 50:50 joint venture named Mazagon Dock Pipavav will implement part of the existing orders of Mazagon Dock of Rs 1,00,000 crore ($21.69 billion) and also bid for future defence contracts in India. "This partnership is formed primarily to fastforward the process of warships and submarine contracts held currently by the MDL," Nikhil Gandhi, chairman of Pipavav Defence had earlier said.
The selection of Pipavav had led to some uncertainty regarding how the joint venture, Mazagon Dock Pipavav Limited, would look at executing the order book of Mazagon Dock which stood at more than Rs 1 lakh crore and also undertake new projects together.
In 2011, the government had agreed to allow public private partnerships in the defence sector and Mazagon Dock was the first to get off the block while the other three - Cochin Shipyard, Hindustan Shipyard and Garden Reach Shipbuilders - were expected to follow suit.
At stake are defence contracts worth crores of rupees to build the Indian Navy's requirement of warships in coming years. On Thursday, shares of Pipavav Defence closed at Rs 86.70 on BSE, up 8.5% from previous close, in a weak broad market where benchmark Sensex ended down 150 points.
PIPAVAV ALLOTS RS 819.000 MILLIONS WARRANTS
TO JHUNJHUNWALA
PRESS TRUST OF INDIA / MUMBAI NOV 16, 2011,
18:58 IST
Pipavav Defence and
Offshore Engineering Company (formerly Pipavav Shipyard) has alloted issue of
securities worth Rs.819.000 Millions to ace investor Rakesh Jhunjhunwala, his
wife Rekha Jhunjhunwala and his close associate Utpal Sheth.
The securities
amount to 10,500,000 warrants were alloted on November 14, the company said in
a filing to the BSE today.
It added that Rakesh
Jhunjhunwala and his wife have been alloted 5,000,000 warrants each, while
Utpal Sheth will get 500,000 warrants.
Each warrant, issued at a price of Rs 78, is convertible into one fully paid-up
equity share of Rs 10 each of the company at any time within 18 months from the
date of allotment, the filing said.
Besides this, the company has also alloted 25,400,000 equity shares of Rs 10
each to Valiant Mauritius Partners FDI against conversion of equal number of
convertible unsecured debentures issued to the Mauritius-based firm on May 19,
2010.
The allotment was done following a permission from Foreign Investment Promotion
Board (FIPB) for conversion of the debentures into equity, the filing added.
The company had earlier said that proceeds from the issue of warrants will be
used towards furthering opportunities in the defence sector and for general
corporate purposes.
At present, the promoter group, including SKIL Infrastructure and SKIL Shipyard
Holdings, holds 45% stake in Pipavav, or 29.83 crore shares in the company, of
which 99.6% is being pledged with financial institutions.
Foreign institutional investors hold 8.55% stake in the company while domestic
institution own 11.56%.
The Pipavav Defence and Offshore Engineering Company Limited (PDOECL) has been
recently in news, following a decision by Mazagaon Dock to form a joint venture
committee with the former for construction of war ships and sub-marines among
others.
Shares of the company today closed at Rs.79.95 per share on
the BSE, down 2.68% from the previous close.
PIPAVAV ENTERS
AVIATION SECTOR WITH AIRBUS
SEP
28, 2011
Mumbai: Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) today announced its foray into the aviation sector by signing a pact with Airbus to set up an aircraft maintenance facility in the country through a joint venture.
As per the MoU, European Aeronautic, Defence and Space Co, (EADS), the makers of Airbus, will pick up 26 per cent equity in the project and have the option to increase it to 49 per cent, Pipavav said in a regulatory filing.
The filing added that 51 per cent stake in the proposed JV will be held by Pipavav, while its promoters SKIL Infra will also hold some stake.
The JV to develop maintenance, repair and overhaul (MRO) facilities and associated infrastructure is likely to cost $ 100 million in the first phase and will be used for civilian and military applications, the filing stated.
“This will be a one of its kind joint venture being set up in India with equity participation from EADS, France (Airbus) which is the global leader in defence and aerospace,” it added.
Of late, the rapid strides of Pipavav has attracted attention of many players, including ace investor Rakesh Jhunjhunwala, who was recently alloted securities of the company worth Rs 81.90 crore including the shares allocated to his wife and a close associate.
Recently, the company was selected as a Naval joint venture partner for building war ships with the Mazagaon Dock (MDL). However, the arrangement has run into a controversy.
Some of the rival bidders, in their complaints, had questioned Pipavav’s ability to develop the war ship as the company has not yet delivered its first ship. MDL’s decision has been put on hold by the Defence Ministry.
The scrip of the company today closed at Rs 79.90 apiece on the BSE, up 2.70 per cent from the previous close.
PIPAVAV DEFENCE
AND OFFSHORE ENGINEERING COMPANY LIMITED (PDOECL) ANNOUNCES JV WITH MAZAGON
DOCK LIMITED – ‘MAZAGON DOCK PIPAVAV LIMITED’
Mazagon Dock
Limited, Ministry of Defence (MoD), Government of India, has selected PDOECL as
its joint venture partner for building warships for the Indian Navy.
The JV, is the first
post-independence JV between a MoD operated Company and private sector Company
to build warships together for Indian Navy.
Mumbai, 12th
September 2011: Pipavav
Defence and Offshore Engineering Company Limited (PDOECL) today announced the
formation of a joint venture with the Government-operated Mazagon Dock Limited
(MDL) for the construction of frontline warships for the Indian Navy. The board
has unanimously approved the setting up of the joint venture company, which
will be named ‘Mazagon Dock Pipavav Limited’.
Pursuant to
Expression of Interest entitled “Synergising Efforts of MDL in Shipbuilding”
issued by Mazagon Dock Limited (MDL), inviting private sector shipyards to
submit proposals for a joint collaborative strategy to meet the challenging timelines
in order to liquidate the order book of MDL, the Company had responded to the
same, and in response, the Company has received a Letter of Intent from MDL,
advising that MDL Board has approved the Company as the Joint Venture Partner,
and that the JV would be named as the Mazagon Dock Pipavav Limited (MDPL).
The JV will mark the
first time after independence that a public-private partnership was formed to
develop frontline warships, ultimately resulting in the speedy and expedited
delivery of warships to the Indian Navy. With critical geopolitical demands for
strengthened defence, the Government of India will continue to invest in
building its armed forces, and the ‘Buy Indian, Make Indian’ policy the MoD has
employed will encourage the Government to depend less on foreign suppliers for
military hardware and more on such public private partnerships to meet the
demands of national security.
Commenting on the
formation of the JV with MDL, Chairman Nikhil Gandhi said:
“We are delighted to announce the formation of a joint venture with
Mazagon Dock Limited. for the construction of frontline warships for the Indian
Navy. As we have always said at PDOECL, we seek to be a Company that
complements Government shipyards in their endeavor to produce warships for the
armed forces. This truly marks a ‘Golden Day’ in the corporate history of this
Company. With significant defence focused infrastructure in the country,
Pipavav’s proposed partnership with MDL, the largest defence shipyard, will
create immense scope for the Company’s order book growth and will help PDOECL
to scale new heights.
The Government of India’s policy allowing private sector participation
in defence will undoubtedly be a valuable asset for the Indian Navy as well as
for the private sector. This mutually beneficial deal will allow MDL to utilize
PDOECL’s infrastructure and benefit from the expedited production of warships.”
Pipavav Defence and
Offshore Engineering Company Limited currently has the largest dockyard in
India, and are in the process of converting present wet dock into the 2nd dry
dock. The Company has fully tied up the debt for the 2nd dry dock. The
Company’s world class defence focused infrastructure with modular technology
and the location of the Company on the Gujarat coastline in a naturally formed
harbor puts the facility at an advantageous position for warship building.
About Pipavav
Defence and Offshore Engineering Company Limited
PDOECL is the
country’s largest integrated defence focused infrastructure in the private
sector.
PDOECL is spread
over an aggregate area of 198.92 hectares (approximately 491.53 acres),
comprising an SEZ unit spread over 95 hectares (approximately 234.75 acres) and
an EOU spread over 103.92 hectares (approximately 256.79 acres). The two sites
are connected by a dedicated corridor road of approximately 4.5 km length built
by the Company. PDOECL is the first company post independence in the Indian
private sector which received the contract for construction of warships viz.
Naval Offshore Patrol Vessels from Government of India. The existing order book
of the Company is US$ 1.5 billion comprising orders from commercial ships for
export, offshore and defence segment. The Compnay has achieved financial
closure for the 2nd dry dock.
NEWS
Tuesday, June 01,
2010 - Press Information Bureau - Government of India
The Prime Minister, Dr. Manmohan Singh, dedicated Pipavav Shipyard to the nation today. Following is the text of the Prime Minister’s inaugural address on the occasion:
“I am very pleased to participate in this function which
marks the dedication of the Pipavav Shipyard to their nation. Some 50 years ago
when I was a student at the
I have often said
Our Government has taken many steps to develop this sector
and Mr Vasan has summed them up admirably. The National Maritime Development
Programme (NMDP) envisages investment of more than Rs. 1 lakh crore. We have
recently set up the
The Shipbuilding industry can have a multiplier effect on economic output and also in terms of its contribution to the generation of employment. The Government of India has therefore been supporting the setting up of shipyards. I understand the National Manufacturing Competitiveness Council is working with the Ministry of Shipping to explore fresh ways to enable faster growth of this dynamic sector. In addition, they intend to take measures to greatly expand inland water transport.
I once again congratulate the management and staff of the Pipavav Shipyard as I dedicate it to their nation. I wish the Shipyard all success for the future. You have done exceedingly well. The nation is proud of the commitment to enterprise and I venture to suggest that the best is yet to come. With these words, I once again congratulate the management and the staff.”
Pipavav Shipyard achieves Integrated Management System (IMS) Certification by DNV. PSL has received the following certificates from DNV on 30th April 2010
PSL received ISO 9001:2000 in October 2008 which is now upgraded to the latest standard i.,e ISO 9001:2008
This world standard certifies PSL Environment Management System
This world standard certifies PSL Occupational Health and Safety Management System
Pipavav Shipyard
Limited wins Infrastructure Excellence Award 2010 Published : 19th March 2010
E18 - A Division of Network 18 has initiated the
Infrastructure Excellence Awards in association with CNBC TV18 to recognize and
felicitate companies for excellence in the field of infrastructure development.
For the first time in
NICMAR (National Institute of Construction Management and Research) is the Knowledge Partner and Grant Thornton is the Consulting Partner to the awards.
Subject submitted nominations in the following Main Award category:
Ports and Shipyards
Over 50 infrastructure development companies submitted over 100 project entries and participated in the process. After an initial screening of applications by Grant Thornton, the short-listed projects were presented to an eminent jury of experts comprising:
Mr Deepak Parekh, Non-Executive Chairman, Infrastructure Development Finance Company (IDFC Ltd)
Dr Kirit Parikh, Chairman, Integrated Research and Action for Development
(IRADe) and Former Member Planning
Commission, Government of
Mr Rajeev Ratna Shah, Former Member Secretary, Planning
Commission, Government of
Mr S S Kohli, Chairman and Managing Director, India Infrastructure Finance
Company Limited (IIFCL)
Prof Ranjit Mitra, Director, School of Planning and Architecture
The jury meeting took place on 3rd March 2010 and PIPAVAV SHIPYARD LTD has been declared the WINNER in the PORTS and SHIPYARDS category for the Development of the Pipavav Shipyard project.
The Awards function was held on 18th March 2010 (Thursday),
at The Grand,
Published: 8th Feb 10, Economic Times
Pipavav to hire more
Posted: Wed, Aug 12 2009. DNA
Pipavav IPO likely in less than 2 months
Saket Sundria. Mumbai
The IPO may hit the street in less than two months, he said. Pipavav Shipyard had planned to raise Rs 700-800 crore through a public offering for 8.68 crore shares to expand its shipbuilding yard, including construction facilities, ship repair and offshore business.
“We are not changing their plans much,” he said when asked about the size of the IPO.
The company had filed a draft red herring prospectus with Sebi in January 2008, which the regulator approved in September last year. However, Pipavav Shipyard had to put its IPO plans on hold due to a sharp fall in the equity markets following the global economic meltdown. The approval is valid till third week of September this year.
“We are trying to catch up on that (deadline),” Gandhi said.Pipavav also did a pre-IPO placement last year. In the DRHP, Pipavav Shipyard said it plans to do a pre-IPO placement of up to 28.5 lakh shares.
CNBC-TV18 Matrix
Pipavav Shipyard may raise Rs 600-650 cr via IPO: Sources
Pipavav Shipyard, in which Punj Lloyd holds 22.34%, is likely to file a red herring prospectus for its initial public offer (IPO) within a week and is looking to raise nearly Rs 600-650 crore, reports CNBC-TV18 quoting sources.
The company is likely to dilute 12.5% stake and is valued at around Rs 50000.000 millions JM Financial, Citi and Enam are the lead managers to the issue.
Punj Lloyd bought 22.34% stake in the company at Rs 3500.000 millions. Sea King Infra and Punj Lloyd are co-promoters, which hold 45.5% stake.
Posted: Sun, Jul 5 2009. 9:55 PM IST MINT
Pipavav wins $112 mn ONGC deal for 12 ships
The contract is
Pipavav’s first for building offshore support vessels
P. Manoj
“We have received notification of award of contract from ONGC,” Pipavav chief
executive officer J.P. Rai told Mint in a telephone conversation from Mumbai.
An executive at ONGC confirmed the development, but did not want to be named
because the deal has not been made public yet.
Pipavav beat nine contenders including ABG Shipyard Ltd, Bharati Shipyard Ltd
and Cochin Shipyard Ltd.
The contract is Pipavav’s first for building ships used to support offshore oil
exploration. Offshore support vessels play a key role in offshore oil
exploration, being used to ferry workers, equipment and other supplies to oil
fields. It also comes at a time when other shipbuilders are struggling to get
orders in the wake of a global economic slowdown.
In February 2008, Pipavav, an unlisted firm promoted by SKIL Infrastructure
Ltd, first started building ships. The firm has secured contracts for
constructing 26 dry bulk cargo-carrying ships ordered by global fleet owners
such as SETAF SAS of France, AVGI Maritime Services SA of
ONGC currently has a fleet of 30 offshore support vessels, most of which are
undergoing repairs. The oil explorer requires 62 vessels to meet its
exploration and production commitments. It has hired 32 support vessels from
private shipping firms to assist in exploration, but is facing a shortage. The
12 new vessels are expected to join its fleet within 24-30 months, as part of
its long-term plan to reduce shortage of these assets and also to replace older
vessels.
Two persons with knowledge of the auction process said ONGC was able to save as
much as $89 million for buying the 12 ships by asking for revised price
quotations from the shortlisted firms to take advantage of the fall in ship
prices globally.
In the first round of bidding in March, ONGC had received lowest price
quotation of $16.7 million for building each vessel. At that price, the
contract would have been worth $200.4 million. In the second round in May, the
total acquisition cost fell to $112 million.
Pipavav is looking for a stock exchange listing by selling shares to the public
through an initial public offering. Last year, the firm had filed a draft
prospectus with the Securities and Exchange Board of India to raise about Rs800
crore through a public issue. The share sale was put on hold due to poor market
conditions.
Posted: Mon, Apr 6 2009. 7:55 PM IST MINT
Shipbuilding firms may claim over Rs4,000 cr subsidy
Firms like ABG
Shipyard, Pipavav Shipyards, Bharti Shipyards and LandT are gearing up to claim
subsidy, industry sources said
PTI
According to industry sources, firms like ABG Shipyard, Pipavav Shipyards,
Bharti Shipyards and Larsen and Toubro are gearing up to claim subsidy, given
by the government to encourage private sector participation in shipbuilding in
the country.
“We can claim Rs17000.000 millions for contracts entered up to 14 August 2007,
as ABG Shipyard has deliveries lined up till 2012-13,” ABG Shipyard chief
financial officer Dhananjay Datar told PTI. A subsidy of Rs1200.000 millions is
already due as per the present delivery position, he said. Pipavav and Bharti
Shipyards have also plans to claim about Rs10000.000 millions each from the
government while Larsen and Toubro and some others may claim about Rs3000.000
millions each, sources said. An LandT
official said on conditions of anonymity the company’s current status indicated
that it could claim Rs3750.000 millions from the government.
“Pipavav Shipyard may claim about Rs10000.000 milions subsidy from the
government for contracts entered (into) within (the) stipulated period as and
when it starts delivering,” a source added.
Pvt shipyards eye defence contracts
18 Feb 2009, 0125 hrs
IST, Sumantra Das, ET Bureau
MUMBAI: With the global slowdown taking a heavy toll, private shipyards are now hoping to get some business from the defence sector. Companies like
ABG Shipyard, Bharati and Pipavav are tying up with international engineering companies like Rolls Royce, Wartsila Diesel and Yanmer Marine, among others, to get a share of the Rs 8,000-crore defence pie for ships.
ABG Shipyard and Bharati Shipyard have already tied up with Rolls Royce to build ships for Coast Guard, and others are also in talks for the same. This follows a fall in orders for new vessels in the last few months. But a bigger cause for concern for the shipbuilders is cancellation of orders. According to industry estimates, the cancellation rate, particularly in the dry bulk vessel segment, is averaging 10-15% of the global order books.
As per a proposal being considered by the government, sophisticated and smaller-size vessels required by Coast Guard and Indian Navy would be built by private shipyards while public sector shipyards would build strategic and large vessels required by the defence sector.
Currently, the Indian Navy orders are restricted to the naval shipyards under the purview of defence ministry, which include Mazagaon Dock, Goa Shipyard, Garden Reach Shipbuilders and Engineers (Kolkata). But most of the shipyards are already booked for years and working at full capacity. To overcome this, the Indian Navy is likely to start ordering ships from private players.
“In
Pipavav Shipyard is also keen on the defence sector. “We are looking at various kind of vessels for the Navy, which will be more complex and weapons-oriented. As they gain experience in doing these things, they will look at more complex vessels,” said a Pipavav official.
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
|
1 |
Rs.86.84 |
|
Euro |
1 |
Rs.70.20 |
INFORMATION DETAILS
|
Information Gathered
by : |
SBA |
|
|
|
|
Report Prepared
by : |
SDA |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
Yes |
|
--LITIGATION |
YES/NO |
No |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
No |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
No |
|
--EXPORT ACTIVITIES |
YES/NO |
No |
|
--AFFILIATION |
YES/NO |
Yes |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
48 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial and operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.