Garware Offshore Plans Shipbuilding Yard with Norway Firm

Mumbai-based Garware Offshore Services Ltd., a company that offers ships for oil and gas exploration activities, plans to enter the shipbuilding business by setting up an exclusive facility for making offshore support vessels. This shipbuilding yard will be a joint venture with Norway-based ship manufacturer Havyard Leirvik AS, promoted by Havyard Group AS. Havyard Leirvik is a leader in making offshore ships, ice-breaking ships and other types of specialized vessels. According to the Shipyards Association of India, shipbuilding will entail an investment of about $76.1m by 2017. Reportedly, the venture could be 50:50, though nothing has been finalized. Garware Offshore had recently signed an agreement with Havyard Leirvik for exclusive representation for the marketing and sale of ships built by them and ship designs produced by Havyard Maritime AS to Indian shipping companies and yards. According to Shipyards Association of India, a New Delhi-based platform for shipyards, shipbuilding will entail a total investment of around Rs37,000 crore by 2012, and around $76.1m by 2017. The growth triggered by shipbuilding in ancillary and supporting industries will generate an additional income for the government through tax revenues of about Rs4,850 crore in 2012, and approximately Rs26,000 crore in 2017. Apart from existing players, the Tata Group, Shipping Corp. of India Ltd., the Jindal Group, Mercator Lines Ltd., Shapoorji Pallonji & Co. Ltd. and the Adani Group are also entering the shipbuilding business. The Gujarat state-controlled Gujarat Maritime Board is planning to set up 100 shipyards in 10 industrial clusters in the next five years. Garware Offshore has so far sold four designs to ABG Shipyard. The company has plans to set up a knowledge process outsourcing centre in India in collaboration with Havyard, which will design all types of marine assets. At present, Havyard is building two offshore ships for Garware Offshore. [Source: http://www.livemint.com]