Dempo Group’s shipbuilding wing Dempo Shipbuilding & Engineering Pvt Ltd (DSEPL) has acquired a majority stake of 74 per cent in Modest Infrastructure Ltd. (MIL) – popular shipbuilding and ship repairs space in Bhavnagar, Gujarat.The six-year-old MIL, a flagship company of Modest Group, has developed technical expertise in building vessels such as product tankers, cement carriers, offshore supply and survey vessels of size up to 6,000 dwt (dead weight tonnage).
Commenting on the deal, Dempo Group’s Chairman Shrinivas Dempo said: “Considering future growth potential of shipbuilding and ship repairs in India, this is a positive development for the domestic shipbuilding industry in general and for the group’s shipbuilding business vertical in particular.”
The company expects to generate a topline of about Rs. 1,500 crores in the next 5 to 7 years, he stated. With the acqusition of 74 per cent stake in Modest Infrastructure, DSEPL will be able to cater to both international and domestic markets with bigger and technologically advanced vessels, a company Press release has said.
DSEPL, which has been into shipbuilding and ship repairs for over four decades, builds and repairs inland and seagoing vessels of size up to 3,500 dwt. With this acquisition and the upcoming shipyard, DSEPL will be able to cater to both international and domestic markets with bigger and technologically advanced vessels to become a leading shipbuilding organisation in India, noted Mr. Shrinivas.
The infrastructure created by MIL with expertise and knowledge in building good quality ships coupled with Dempo Group’s experience in shipbuilding can add considerable value to MIL and take the company on an accelerated growth trajectory to generate expected top line of about Rs. 1,500 crores in the next 5-7 years, he said.
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