In 2009, Dempo Group shifted its focus from mining business by selling it to Vedanta Resources to shipping industry and this acquisition reinforces its place in the shipping industry. The Group has an unlisted subsidiary Dempo Shipbuilding and Engineering through which this transaction has been effected. Modest Infrastructure Limited, a Gujarat’s shipyard company, which began as Shipping Agents in 1986 and developed into the present status of ship builders, has a shipyard at Ramsar near Bhavnagar and also is developing a new one at Ratanpar. As of now, the company has the capacity to build sophisticated vessels up to 6000 dead weight tonnage. And the new facility on completion will have the capacity to build and repair ships of 50,000 dead weight tonnage. With this acquisition, Dempo group joins the big companies like L&T and ABG Shipyard. It is considered a good business strategy since cheap and skilled labour linked with expected growth of domestic industries such as steel, will bring a good volume of business, not to mention about the orders for ships that may emerge from the defence sector.
Thursday, 23 August 2012
Dempo acquires majority stake for INR 700crore in Modest Infrastructure
In 2009, Dempo Group shifted its focus from mining business by selling it to Vedanta Resources to shipping industry and this acquisition reinforces its place in the shipping industry. The Group has an unlisted subsidiary Dempo Shipbuilding and Engineering through which this transaction has been effected. Modest Infrastructure Limited, a Gujarat’s shipyard company, which began as Shipping Agents in 1986 and developed into the present status of ship builders, has a shipyard at Ramsar near Bhavnagar and also is developing a new one at Ratanpar. As of now, the company has the capacity to build sophisticated vessels up to 6000 dead weight tonnage. And the new facility on completion will have the capacity to build and repair ships of 50,000 dead weight tonnage. With this acquisition, Dempo group joins the big companies like L&T and ABG Shipyard. It is considered a good business strategy since cheap and skilled labour linked with expected growth of domestic industries such as steel, will bring a good volume of business, not to mention about the orders for ships that may emerge from the defence sector.
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