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Tuesday, Feb 01, 2011
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Corporate - Diversification
SKS Logistics diversifying into ship repair business; buys second-hand floating dry dock
Mumbai, Jan 31
The Mumbai-based SKS Logistics Ltd is diversifying into ship repair business.
The company has acquired a second hand floating drydock from Singapore, which is expected to arrive in Mumbai next month, Mr S.K. Shahi, Chairman and Managing Director, said.
The floating yard is mainly to undertake repairs of smaller ships-coastal and offshore supply vessels.
The company, which is a leading coastal shipping operator, expects good business as there is a shortage of ship repairs service.
“Currently ships have to wait more than three months to get dry docking facility, said Mr Shahi. The company will be able to undertake dry-docking of its own vessels on time so that the down time can be reduced, he said
Mr Sahi said SKS has recently received an order from Kribhco, the cooperative fertiliser manufacturer, for coastal and inland movements of urea imported from Oman.
“The contract, worth around Rs 100 is for a complete logistic support to deliver the imported cargo from the port to the point of sale,” he said.
The listed costal shipping operator has reported an income of Rs 18 crore and a net profit of Rs 1.60 crore for the quarter ended December 31, 2010. The revenue is expected to improve further with the starting of the ship repair business. The floating dry dock acquired at a cost of about Rs 18 crore, is expected to start operation in March.
SKS had earlier planned to start a ship repair yard in Uran near Navi Mumbai but it could not go ahead due to problems related to acquisition of land.
On Monday, the company shares closed at Rs 17.15 up by 7.8 per cent on BSE.
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