Dempo Shipbuilding & Engineering Pvt Ltd., the shipbuilding arm of Goa based Dempo Group, with interests in areas of mining, shipbuilding, manufacturing of calcined petroleum coke and pig iron, media, real estate and sports on Wednesday announced that it has acquired majority stake of 74 per cent in Modest Infrastructure Ltd, a leading player in shipbuilding and ship repairs space in Bhavnagar, Gujarat for an undisclosed sum. Modest Infrastructure Ltd (MIL) is the flagship company of Modest Group promoted by first generation entrepreneurs based in Bhavnagar, Gujarat.
A recent entrant in the private shipyard space, MIL has shown unparalleled growth in the short span about six years and has developed technical expertise to build sophisticated vessels such as product tankers, cement carriers, offshore supply and survey vessels of size up to 6000 dwt (dead weight tonnage).
Apart from the existing Shipyard at Ramsar (Bhavnagar), MIL is in the process of developing a new shipyard at Ratanpar (about 20 kilometers from Bhavnagar) with capability of building and repairing ships up to 50000 dwt.
Dempo Shipbuilding has been engaged in shipbuilding and ship repairs for over four decades and currently builds and repairs inland and seagoing vessels of size up to 3500 dwt. The acquisition of MIL is in line with the company's strategy to expand this niche business of the group beyond the shores of Goa. With this acquisition, DESPL will be able to cater to both international and domestic markets with bigger and technologically advanced vessels.
Commenting on the closure of the deal, Shrinivas Dempo, chairman, Dempo Group said that, " MIL's expertise and knowledge coupled in building ships with Dempo Group’s experience in shipbuilding and brand image can add considerable value to MIL and take the company on an accelerated growth trajectory to generate expected top line of about Rs 1500 crores in next five to seven years."
