"The long-term business strategy road map worked out firmly points out the necessity of pro-active marketing efforts on both commercial and defence sectors. The main focus segments on the commercial front would include coastal, inland, fishing, specialised vessels etc," Chairman and Managing Director (CMD) Madhu S Nair said in the company's annual report.
CSL said fishing vessels have high potential and it has started the work to tap the immense opportunities therein.
"Sensing the high potential in this arena for good quality safe and technologically advanced vessels, CSL aspires to spin off a dedicated vertical which will enable production of these vessels to cater to the high demand volume envisaged," Nair said.
Towards this, CSL had submitted a resolution plan for TEBMA Shipyard Ltd (TSL), which was listed under the National Company Law Tribunal (NCLT) and succeeded in obtaining favourable orders for taking over the facility. Physical activities on the project are likely to be commenced soon.
As part of CSL's long-term strategy - "CRUISE 2030", "CSL aspires to achieve 6x-8x growth by 2030" and towards this the company has identified deep sea fishing vessel as one of the several opportunities.
Since fishing vessel segment calls for a dedicated facility so as to cater to the large volume of business different from the conventional shipbuilding process, CSL was in search of a suitable facility to enter into this segment and bid for TSL, Malpe which was undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, the annual report said.
Accordingly, CSL submitted its resolution plan which was approved by NCLT and CSL is in the process of implementing the plan.
The eight Ro-Pax vessels contracted for IWAI for operations in National Waterway 1 & National Waterway 2 were delivered amid the COVID-19 lockdown and sailed off to Kolkata, he said.
Cochin Shipyard is today at a very crucial juncture of growth and development, Nair said and added while strengthening its core competencies in shipbuilding and ship repair, the company is looking at new avenues, facilities and business opportunities.
While focusing on the defence and large shipbuilding orders, CSL had also taken up small ships in the fishing segment and the inland waterways segment, taking into consideration its vital requirement in the strategic interests of the nation, he said.
With a multi-locational operation and strategic depth, the company hopes to sustain its growth in the coming years by overcoming the challenges on production loss and cash flow caused by the pandemic, through hard work, focussed marketing & innovative business models, he said.
Stating that CSL is presently in an extremely challenging and competitive business environment, Nair said while strengthening its core competencies in shipbuilding and ship repair, the company is poised for expected growth and development in the coming years.
Incorporated in 1972 as a fully-owned government company, CSL in the three decades has emerged as a forerunner in the Indian shipbuilding & ship repair industry.
This yard can build and repair the largest vessels in India.
It can build ships up to 1,10,000 deadweight tonnage (DWT )and repair ships up to 1,25,000 DWT.
The yard has delivered two of India's largest double hull Aframax tankers each of 95,000 DWT . CSL has secured shipbuilding orders from internationally renowned companies from Europe and the Middle East and is nominated to build the country's first indigenous Air Defence Ship.
The shipyard commenced ship repair operations in 1982 and has undertaken repairs of all types of ships including upgradation of ships of oil exploration industry as well as periodical lay-up repairs and life extension of ships of Navy, Coast Guard, Fisheries and Port Trust besides merchant ships of Shipping Corporation of India and ONGC.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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