Edelweiss Asset Reconstruction Company (ARC) has revealed its priorities for reviving India’s Bharati Shipyard, which is looking to complete 21 orders over the next 18 months.
Edelweiss ARC has taken more than 70% of the shipyard’s INR50 billion (USD800 million) debt, partly drawn by the ailing shipyard’s strong orderbook, said Edelweiss ARC Managing Director and CEO Siby Antony.
“Bharati has more than 60-plus vessels on order and has facilities spread over six locations that made the acquisition attractive,” he told IHS Maritime.
After acquiring offshore support vessel owner Great Offshore the shipyard had been hit hard by the global economic slump.
But Bharati’s new Interim CEO Sameer Kaji said Bharati has a “lot of value that can be unlocked”, highlighting opportunities in the defence sector.
“We are first focusing on completing 21 vessels of the 60 vessels, of which 16 are orders from the defence sector,” he said.
These 21 vessels are earmarked for completion over the next 18 months, generating expected revenues in excess of INR14 billion, he added.
“We will be working with Bharati promoters P.C. Kapoor and Vijay Kumar, the management and technical team to complete vessel-building projects,” said Kaji.
Indian shipyards are increasingly focusing on bagging defence orders from the government, which has expressed its preference for ordering from domestic shipyards, especially for patrol vessels.
“This provides us with a viable alternative in the current economic slump, when commercial orders are limited,” he said.
Demand for offshore-related construction is expected to revive in the next five to seven quarters, added Kaji.