With 74 per cent stake in Modest Infrastructure, Dempo Shipbuilding now has a naval order of seven fuel-supply vessels. The total order size is around 4,000 dead weight tonnage to be delivered by 2013.
Dempo’s own order book for the current financial year comprises 10 vessels, all of which are commercial ships from companies such as Adani, United Shipping and Jindal Steel and Power among others.
“Besides increasing our overall shipbuilding capacity to meet the consumers' need, Modest Infra’s presence in the defence sector order was also a factor for acquiring stake in the company. Naval orders are a big growth area for us,” said Srinivas Dempo, chairman, Dempo Group.
The acquisition is also in line with Dempo’s long-term strategy of going for public listing as it helps in increasing the company’s valuation. The company will need Rs 500 crore to develop a new shipyard in Ratnapar, on a site owned by Modest Infra with a capacity of 50,000 dead weight tonnage.
Dempo group is also keen on partnering public sector shipyards to expand its business on “a need to need basis,” Dempo said.
The company has been present in the shipbuilding sector for the past 40 years and has a capacity of making vessels of up to 3,500 dead weight tonnage in size.
The Group exited the mining business in 2009 and has diversified business interests in shipbuilding, manufacture of calcinated carbon and pig iron, media, real estate and sports in Goa and in the neighbouring districts of Maharashtra.
