West Coast Marine Yacht Services to raise Rs 150 crore

West Coast Marine Yacht Services, roped in by Snapdeal in March to sell luxury yachts online, is planning to raise around Rs 150 crore. The luxury boat dealer's fund-raising bid comes on the back of its plan to develop marinas in Goa and other parts of the country, and also its proposed foray into manufacturing.

According to Aashim Mongia, managing director of West Coast Marine Yacht Services, the sector has started picking up after a three-year slowdown and market sentiments have improved.

He said the Mumbai Port Trust and Maharashtra Maritime Board have shown interest in developing the Mandwa Port. "We are part of a consortium which will develop the infrastructure."

The company is taking up multiple projects, including the setting up of a full-fledged marina in Goa at an investment of around Rs 300 crore.

It is also planning to foray into manufacturing of yachts. Currently, it imports yachts from West Asia to sell in India.

"To support these projects, we're planning to raise Rs 100-150 crore, for which we are talking to private equity funds," said Mongia.

Luxury products and services are estimated to be a $14-billion market in India and growing at 30 per cent year-on-year, according to a KPMG-Assocham report.

Mongia said the deal with Snapdeal, signed in March this year, would increase the visibility and bring traction.

The company targets to sell 10-15 boats in the next one year and hopes to sell at least two boats online. Yacht prices start at Rs 20 lakh going all the way up to Rs 1 crore.