Cochin Shipyard expects to double ship repair revenue to Rs 12 bn in 3 yrs

One of its major expansion projects is a Rs 17.99-bn drydock for building complex, technology-intensive large vessels

Cochin Shipyard Ltd its ongoing and upcoming expansion projects will help it free up more space for repairing large international vessels and double its revenue from ship repairing operations to Rs 12 billion in the next three years. The company, which is expanding its ship repairing capabilities to Mumbai and Kolkata, is also looking at setting up a facility in the Andaman Nicobar islands, said Cochin Shipyard CMD Madhu S Nair.

The plans include a Rs 9.70-billion International Ship Repair Facility (ISRF) in Kochi to increase the repair throughput by around 70 per cent and to equip the company for repairing an additional 80 vessels a year. It has also announced a geographical expansion to set up ship repair facilities in collaboration with the Mumbai Port Trust in Mumbai and another one in Kolkata in collaboration with the Kolkata Port Trust. Further, a joint venture with Hooghly Dock and Port Engineers Ltd, where it holds around 74 per cent stake, targeting construction and repair of inland water and coastal vessels is also expected to be operational soon.

"With the expansion, we will have a capacity to repair around 150 ships in Kochi, from the current around 80-100 ships depending upon their size. The Kochi facility can have more larger ships for repairing since the smaller ones can be moved to the ISRF," said Nair. At present, the Mumbai facility has a capacity for around 40 ships. Once it is revamped, it might have a greater capacity.

The expansion in Kochi would help the company add another Rs 3 billion in revenue in the second year of its operation. The Mumbai facility is expected to bring in around Rs 1.5-2 billion in 2.5 years, while the Kolkata facility, since it is a pilot project for inland ship repairing and shipbuilding, would bring in around Rs 300-400 million by that time.

"We are expecting our revenues from ship repairing to grow to around Rs 12 billion in the next three years. Last year, it was around Rs 6.23 billion and it was a growth from Rs 3.7 billion two years back," Nair added.

Another major expansion project is a Rs 17.99-billion new large drydock for construction of complex, technology-intensive large vessels such as LNG carriers, offshore drillships, and larger aircraft carriers, along with repairs of offshore rigs and semi-submersibles. Construction work of the plant and machinery has been awarded to Larsen & Toubro Ltd and the target of completion is June 2021.

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