Mumbai: Dolphin Offshore
Enterprises, the provider of offshore and onshore integrated services to much
of the oil and gas industry has decided to move into ship building, for which
it will buy shipyards.
Offshore started in 1979 as a diving contractor, and has expanded into diving
and underwater services, marine operations and management services, topside/fabrication
services, maintenance and modifications of offshore structures and ship repair.
company has earmarked an investment of Rs400 crore for the project. Dolphin is
reportedly evaluating two existing shipyards on the West Coast for possible acquisition.
company says that the Gujarat Maritime Board has allotted land at Jafrabad for
the project, which will get off the ground in about two years, and would progress
toward completion in three phases.
greenfield project will most probably positioned at the grass-root level, to build
relatively smaller vessels of up to 100 metres (1,000-1,200 tonnes), which would
be used by the oil and gas industry to assist in in-house repair and the fabrication
business, and also for coastal trade, which is an area the company plans to expand
to Navpreet Singh, joint managing director, Dolphin, the company plans to begin
with smaller vessels on account of their lower investment and additional infrastructure
demands. Moreover, Dolphin plans to play a niche market, rather than compete with
bigger manufacturers in this space.
to Singh, one of the shipyards under evaluation for possible acquisition has the
requisite licences, even though it is yet to commence manufacturing. It''s present
value is reportedly Rs30 crore, with a total outlay of Rs90 crore. The other shipyard
is valued at Rs50-60 crore in all.
plans to finalise the deal in the next 2-3 months.
acquisition of these two shipyards would allow Dolphin access to shipbuilding
expertise and the entire management of the shipyards, which would be an asset
for the greenfield project at a later stage.