Harry Singh Banga's Caravel Group sets sail on a zero-carbon mission

He is one of the richest Indian businessmen in Hong Kong. The Caravel group, run by Harindarpal ‘Harry’ Singh Banga (pictured) (net worth: $2.8 billion), operates the world’s second-largest third-party shipping management company, handling over 650 vessels and managing assets worth over $35 billion. In addition to running its fleet, the group trades in iron ore and invests in companies like Nykaa.

 

Banga is now preparing for a fundamental shift in the shipping industry, which will require hiring digitally savvy seafarers and undertaking large-scale reskilling and upskilling of existing crews. This is necessary as new ships will be required to achieve zero carbon emissions by 2050. These “energy transition” vessels will run on alternative fuels such as liquefied natural gas, ammonia, methanol, and hydrogen. 

Banga, chairman of the family-run group, says: “Only 1 per cent of the ships at sea today are energy transition vessels. But the demand for digitally native seafarers to operate newly built vessels powered by alternative fuels and the latest technology will lead to a severe officer shortage, which we estimate could exceed 100,000. We need to control the supply of this talent, as global trade growth will drive an 18 per cent increase in crew demand.” 

To address this challenge, Banga has acquired the Noida-based International Maritime Institute, which can train over 480 cadet officers annually to prepare them for the new era of shipping. The company has already trained over 2,000 seafarers to operate dual-fuel vessels, out of the 27,000 they have hired. 

Banga acknowledges that companies have no choice but to adapt, despite energy transition ships running on dual fuels costing up to 20 per cent more than conventional vessels. The payback period for these ships could extend beyond 10 years.

Currently, the supply and demand for seafarers are evenly matched, with roughly 1.2 million seafarers available worldwide. The Philippines leads with 400,000 seafarers, followed by India with 250,000, and then China. “There is a large gap between the no. 1 and no. 2. The key reason is that most Filipino seafarers speak English, which is not the case for many in India. The question is: Can this gap be reduced?” asks Banga. 

Through this acquisition, Banga aims to increase the availability of seafarers trained to handle energy transition vessels, new fuel systems, propulsion technologies, and the bunkering and operation of cargo ships. Additionally, they must adapt to digital shifts in vessel management, using artificial intelligence-driven and predictive technology tools. 

  The Caravel Group is also the largest iron ore exporter to China, managing 25 per cent of India’s iron ore exports. Banga notes that despite geopolitical tensions between India and China, trade remains essential. 

  “Geopolitics and trade operate differently, and India remains a key trading partner for China. The World Trade Organization era is over — bilaterals are the way forward. In pharmaceutical, for instance, India imports bulk drugs from China, adds value domestically, and exports them back. There are several areas of collaboration in manufacturing, including solar batteries and electronics.” 

  The group has also been a selective investor in India’s private equity market, holding a 5 per cent stake in Nykaa. It has co-invested with KKR in Reliance Retail and Jio Platforms, as well as in Max Group assets. It is now co-investing with Sorin Investments, led by Sanjay Nayaar. 

“Our total investment in India is around $600 million. We target a blended compound return of 8-10 per cent. We have a global investment outlook — over the past five years, we have invested in the US, and in the past five to six months, we have invested in China. We are not early-stage growth investors,” says Banga.