The Great Eastern Shipping Company Limited

Type Public

Traded as BSE: 500620

NSE: GESHIP

Industry Shipping

Founded 1948 [1]

Headquarters Mumbai, Maharashtra

Key people K. M. Sheth, Chairman

Bharat K. Sheth, MD [2]

Revenue 2,245.40 crore (US$406.42 million)[3]

Website www.greatship.com

Overview:

The Great Eastern Shipping Company Ltd. (G E Shipping)

 

   

  ● India’s largest private sector shipping company   

  ● Experience and expertise spanning over 6 decades.   

  ● An enviable global reputation.    ● Creating value for customers.

 

    The company has two main business : shipping and offshore. The shipping business is involved in

transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business services to the oil companies in carrying out offshore exploration and production activities, through its subsidiary Greatship (India) Limited. The shipping business has been awarded the ISO 9001: 2000 standard certification by DNV.

History:

G E Shipping owes its success to the foresightedness of two families - the Sheths and the Bhiwandiwallas, who started their own shipping line to help expand the reach of their trading businesses. In 1948, after obtaining the mothballed Liberty ship, SS Fort Elice, G E Shipping began its maiden voyage under the entrepreneurial genius of Vasant J. Sheth and steered ahead confidently, tasting new waters and exploring new avenues. From providing sea-logistics support in its initial years to venturing in tramp shipping, to diversifying into offshore oil field services, much against the industry norms, the company has often swum against the tide and in the process, turned the tides in its favour, thereby laying a path for others to follow.

Founders

The founding fathers of G E Shipping were great visionaries who excelled despite all odds and laid the foundation of - The Great Eastern Shipping Co. Ltd.

The Company was promoted by Mulji (Sheth) brothers and Bhiwandiwalla family.

Maneklal Ujamshi Mulji Maneklal Ujamshi Mulji was involved in textile business and later, in the establishment of efficient network for the distribution of sugar. He was a man known for his organizing His role in the efficient distribution of sugar along with his brother Jagjivan had earned him the sobriquet of 'Sugar King'. He supported and helped Jagjivan, in establishing G E Shipping in its initial years.

Ardeshir Hormusji Bhiwandiwalla Jagjivan Ujamshi Mulji

Vasant J. Sheth

          

 

  Founders   

 

The founding

fathers of G E

Shipping

were great

visionaries

who excelled

despite all

odds and laid

the

foundation of

- The Great

Eastern

Shipping Co.

Ltd.

The Company

was promoted

by Mulji

(Sheth)

brothers and

Bhiwandiwall

a family.

 

 

  Maneklal Ujamshi Mulji   Maneklal Ujamshi Mulji was involved in textile business and later, in the establishment of    an efficient network for the distribution of sugar. He was a man known for his

organizing capability. His role in the efficient distribution of sugar along with his brother Jagjivan had earned him the sobriquet of 'Sugar King'. He supported and helped Jagjivan, in establishing G E Shipping in its initial years. 

  Ardeshir Hormusji Bhiwandiwalla

  Jagjivan Ujamshi Mulji

  Vasant J. Sheth

The Great Eastern Shipping Company Limited (BSE: 500620, NSE: GESHIP) is India's largest

private sector shippingcompany which mainly transports liquid, gas and solid bulk products. The

company has two main business: shipping and offshore. The shipping business is involved in

transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business;

services the oil companies in carrying out offshore exploration and production activities through its

wholly owned subsidiary Greatship (India) Limited. The shipping business has been awarded the ISO

9001: 2000 standard certification by DNV.

G E Shipping owes its success to the foresightedness of two families - the Sheths and the

Bhiwandiwallas, who started their own shipping line to help expand the reach of their trading

businesses. In 1948, after obtaining the mothballed Liberty ship, SS Fort Elice, G E Shipping began

its maiden voyage under the entrepreneurial genius of Vasant J. Sheth and steered ahead

confidently, tasting new waters and exploring new avenues. From providing sea-logistics support in its

initial years to venturing in tramp shipping, to diversifying into offshore oil field services, much against

the industry norms, the company has often swum against the tide and in the process, turned the tides

in its favour, thereby laying a path for others to follow. As of 2007 it had some 944 employees

including sailing staff.[4] It is listed on India's two main stock exchanges i. e. the Bombay Stock

Exchange and the National Stock Exchange.

Business overview:

G E Shipping is India's largest private sector shipping service provider enjoying a formidable presence in the international maritime industry. The shipping business operates under two main businesses: dry bulk carriers and tankers. A sizeable part of the tankers enjoy approvals from oil giants like SHELL, BP, EXXONMOBIL, CHEVRON TEXACO, TOTALFINA to name a few.

 

     

 

Backed by an enviable clientele comprising

industry leaders, international oil companies and

governments who vouch for its services, the

division has earned the status of being the most

preferred shipping service provider. With a pulse

on the global market and a thorough understanding

of the ever-evolving market needs, the division is

well-equipped to anticipate the demands of its

clients and to deliver on its commitments,

successfully and satisfactorily.

 

     

 The company has been certified to ISO 9001: 2000

standard by the governing body Det Norske Veritas

(DNV).

Fleet:

 

 

S.NO. VESSEL NAME DWT GRT BUILTLOA

(mtrs)BEAM (mtrs)

DRAFT (mtrs)

Crude Oil Carriers

1 JAG LALIT 158,344 81,396 2005 274.00 48.00 17.07

2 JAG LOK 158,280 81,396 2005 265.16 48.00 17.07

3 JAG LYALL 110,531 61,315 2006 244.50 42.00 15.50

4 JAG LATA 105,716 57,508 2003 244.00 42.03 14.91

5 JAG LEELA 105,148 58,374 1999 242.98 42.04 14.77

6 JAG LAXMI 105,051 58,374 1999 242.98 42.04 14.77

7 JAG LAVANYA 105,010 58,374 2004 234.88 42.00 14.75

 

8 JAG LATEEF 147,080 80,870 2000 274.22 47.80 16.02

9 JAG LAKSHITA 147,093 80,870 2000 274.22 47.80 16.02

Product Carriers

10 JAG APARNA 74,859 42,403 2009 228.00 32.25 14.30

11 JAG AMISHA 74,500 42,403 2009 228.00 32.24 14.30

12 JAG AABHA 74,841 42,403 2008 228.00 32.24 14.30

13 JAG AANCHAL 74,811 42,403 2008 228.00 32.25 14.30

14 JAG PRAKASH 47,400 29,909 2007 183.00 32.20 19.10

15 JAG PUSHPA 47,400 29,909 2007 183.00 32.20 19.10

16 JAG PRERANA 47,400 30,028 2007 183.00 32.20 12.43

17 JAG PADMA 47,172 28,443 1996 182.05 32.20 12.67

18 JAG PAHEL 46,319 27,627 2004 182.85 32.22 12.21

19 JAG PANKHI 46,273 27,627 2003 182.85 32.20 12.21

20 JAG PREETI 29,139 20,302 1981 170.68 27.00 10.21

21 JAG PARWAR 29,998 19,925 1988 174.91 26.60 10.16

22 JAG PRACHI 28,610 18,625 1991 178.96 25.30 11.00

Dry Bulk Carriers

23 JAG ARJUN 164,796 85,845 1996 288.11 44.01 17.63

24 JAG AARATI 80,325 43,736 2011 229.00 32.24 14.47

25 JAG ADITI 80,325 43,790 2011 229.00 32.24 14.45

26 JAG ARYA 80,480 43,843 2011 229.00 32.24 14.46

27 JAG ARNAV 71,122 38,265 1995 224.90 32.20 13.63

28 JAG RISHI 56,719 33,036 2011 189.99 32.26 12.80

29 JAG RANI 56,719 33,036 2011 189.99 32.26 12.80

30 JAG RAHUL 52,364 30,011 2003 190.00 32.26 12.02

31 JAG RATAN 52,179 30,477 2001 190.00 32.26 12.32

32 JAG RAVI 45,342 26,322 1997 189.95 32.20 10.92

32 Ships aggregating 2.55 Mn dwt

   

Fleet:

SUBSIDIARIESGreatship (India) LimitedGreatship (India) Limited (GIL) has completed 6th year of its successful operations. The Company, now one of India’s largestoffshore oilfield services providers, has recorded steady financial performance for this year, as in the last 5 years.GIL has recorded a profit after tax of ` 90.19 crores on a standalone basis and ` 220.23 crores on a consolidated basis forthe year ended March 31, 2012 as compared to ` 118.38 crores and ` 215.71 crores respectively for the year ended March31, 2011. The consolidated net worth of GIL for financial year 2012 was ` 2457.03 crores as compared to ` 2031.56 croresfor financial year 2011 on a consolidated basis.Your Company has till date invested total of ` 1714.43 crores by subscribing to 10.92 crores equity shares totaling in value to` 1268.56 crores and 14.86 crores non-convertible preference shares totaling in value to ` 445.87 crores. Your Company’sholding is 98.11% of the total equity share capital of GIL.GIL, alongwith its subsidiaries, is currently owning/operating 4 Platform Supply Vessels (PSVs), 9 Anchor Handling Tug cumSupply Vessels (AHTSVs), 3 Multipurpose Platform Supply & Support Vessels (MPSSVs), 3 Multipurpose platform supportvessels capable of Remotely Operated Vehicles operations (ROVSVs) and 2 Jack up Rigs. GIL and its subsidiaries also havean order book of three ROVSVs and one 350 feet Jack up Rig. During the year, the shipbuilding contracts for 2 MultipurposeSupply & Support Vessels were cancelled.During the year, GIL granted 189600 stock options (net of cancelled/forfeited) under various Employee Stock OptionsSchemes.GIL has the following wholly owned subsidiaries :a) Greatship Global Energy Services Pte. Ltd., Singaporeb) Greatship Global Offshore Services Pte. Ltd., Singapore

c) Greatship Global Holdings Ltd., Mauritiusd) Greatship Subsea Solutions Singapore Pte. Ltd., Singaporee) Greatship Subsea Solutions Australia Pty. Limited, Australiaf) Greatship (UK) Limited, United Kingdomg) Greatship Global Offshore Management Services Pte. Ltd., SingaporeGreatship DOF Subsea Projects Private Limited, Mumbai, erstwhile wholly owned subsidiary of GIL was struck off from theRegistrar of Companies under the Fast Track Exit mode on 30.12.2011.Other subsidiariesApart from GIL and its subsidiaries, your Company has the following wholly-owned subsidiaries :a) The Great Eastern Shipping Co. London Ltd.b) The Greatship (Singapore) Pte. Ltd.

   

  

 Safety & quality

ISO 9001:2008, ISO 14001:2001, OHSAS 18001:2007 certified

 At G E Shipping, Safety takes precedence and is followed and implemented, strictly and religiously. The

term “Safety” entails safety of not just life and cargo but also encompasses protection of the environment

and maintenance and upgradation of vessels at regular intervals. The company has a proactive safety

culture in place. Initiatives to integrate and implement strict safety measures for protection and

preservation of environment has helped to uphold company's non-compromising attitude towards safety.

Mr. I. N. Bose is the designated person ashore under ISM Code as well as the management

representative under ISO Standard.

Human Resources

Corporate Functions

 

 

 

 Mr. Jayesh Trivedi (Vice President - (Secl. & Legal) & Company Secretary)   Mr. Trivedi has been with the company since 2000. He is a Company Secretary and Law    graduate by qualification. He heads the Legal and Secretarial department of the company.    Prior to joining GE Shipping, he has worked with DCW Home Products Ltd. and    Synthetics & Chemicals Ltd. 

Mr. G. Shivakumar (Chief Financial Officer) He joined us as a management trainee immediately after completing his post-graduation in    management from IIM Ahmedabad in 1990, and is currently the Chief Financial Officer. His    diverse exposure within the company includes stints in key functions like Treasury,    Corporate Finance, Human Resources, and Strategic Planning, and was also as CFO of    our subsidiary Greatship (India) Limited.Mr. Salil Raghavan (Head – Human Resources)An Engineer and MBA from XLRI, Salil joined GE Shipping in 2005. He heads the Human    Resources department of the company. Prior to joining us he has worked with companies    like Marico, BPL Mobile, BILT and TVS.Mr. Anjan Deb (Head – Information Technology) Anjan is a post graduate in Management and has been in the Information Technology    domain for more than 2 decades. He has been with the company since 2008 and he    heads the IT function for the company. Prior to joining us he was associated with    companies including HLL, Lehman Brothers, and ATOS Origin.

 

       Business Functions   

 

Mr. Tapas Icot (President- Shipping)  Mr. Icot is a Commerce graduate with a post graduation in Management studies. He    joined the company in 1991, as a Manager in the Claims department and thereafter has    been instrumental in key roles including creating a Strategic Planning Cell and heading    the Commercial function of the company. He is now the Head of Shipping Business. He    started his career with United India Insurance Co. Ltd. before moving into the shipping industry. He has had stints with India Steamship and Essar Shipping before joining GE    Shipping. He is an Associate of the Insurance Institute of India and a Fellow of the Indian    Council of Arbitration.He has also completed his Masters in Financial Management from    Mumbai University.   Mr. Reginald Sequeira (Head - Bulk Carrier Division)  Mr. Sequeira is a management graduate from XLRI and has around 30 years of industry    experience before joining G E Shipping in 2006. He heads the Bulk Carrier Division of the    company. Prior to joining us he has worked with companies like Shipping Corporation of    India, Chowgule Steamships and Noble Chartering. Mr. David Birwadkar (Vice President - Fleet Management) A Marine Engineer from Mumbai Port Trust, he joined us in 2006 and currently heads    Fleet Management (Technical, Procurement and Fleet Personnel). As a marine engineer    he has sailed with SCI and subsequently

with Wallem, where he rose to the position of    Chief Engineer. He held key positions in Technical function with Anglo Eastern Ship    Management and Essar Shipping. Capt. Prakash Correa (General Manager - Tanker Operations, International) He is a Master Mariner who joined us in 2004 to handle the operations of the tankers that    are in the international trade. Including sea-time, he has experience of about 30 years in    various capacities in shipping companies like Transworld Group and Varun Shipping. 

Mr. Somesh Kapila (Head – Tanker Division) An MBA from IIM-Lucknow, Mr. Kapila joined Great Eastern Shipping in 1995. Prior to    joining us, he was employed with Shipping Corporation of India. He heads the Tanker    Division of the company. Mr. I. N. Bose (General Manager – Quality Safety & Training)  Mr. Bose is a Marine Engineer from DMET, with about 12 years of sea career including 5    years as a Chief Engineer. He has around 22 years of rich experience in Classification,    survey and audits of ships. He joined us in 2007 and has been the Head of Quality, Safety    and Training, since then. Prior to joining us he has worked with the Indian Register of    Shipping. He is the "Designated Person Ashore" (DPA) under ISM code as well as "Management Representative" (MR) under ISO standard.

Capt. P K Dhyani (General Manager – Coastal Operations)  Capt. Dhyani is a Master Mariner who has been with the company over 3 decades and    began his sailing career with us. During his sailing career with us he took over as Captain    and then moved on to join the shore office of the company. Currently he heads the    Coastal - Operations function at GE Shipping. 

 Acquisition and Sales 2012-13

Sales

Vessels sold in FY 2012-13 

Tankers

Vessels Year Built DWT (m.t.)

Jag Viraj 1991 17, 577

Jag Pradip 1996 45,684

 Total : Vessels - 2 , DWT(m.t.) - 63,261

Acquisition and Sales 2011-12

Acquisition 

Vessels acquired in FY 2011 – 12 

Dry Bulk

Vessels Year Built DWT (m.t.)

Jag Arya 2011 81,000

Tankers

  Vessels Year Built DWT (m.t.)

- - -

Jag Aditi 2011 80,700

Jag Rani 2011 56,719

- - -

- - -

 Sub Total : Vessels -3, DWT-218419 Sub Total : Vessels -0 , DWT (m.t.) - -

 Total : Vessels -3, DWT-218419

Acquisition and Sales 2010-11

 Acquisition 

Vessels acquired in FY 2010 - 11 

Dry Bulk

Vessels Year Built DWT (m.t.)

Jag Aarati 2011 80,700

Jag Rishi 2011 57,000

Tankers

  Vessels Year Built DWT (m.t.)

Jag Prachi 1991 28,610

     

 Sub Total : Vessels -2 , DWT(m.t.) -

137,700Sub Total : Vessels -1 , DWT (m.t.) - 

28,610 

Total : Vessels -3 , DWT (m.t.) - 166,310

Acquisition and Sales 2009-10

 Acquisition 

Vessels acquired in FY 2009 – 10 

Dry Bulk

Vessels Year Built DWT (m.t.)

- - -

- - -

- - -

Tankers

  Vessels Year Built DWT (m.t.)

Jag Amisha 2009 74,500

Jag Aparna 2009 74,859

Jag Padma 1996 47,172

 Sub Total : Vessels - , DWT(m.t.) - Sub Total : Vessels - 3, DWT (m.t.) -

196,172

Acquisition and Sales 2008-09

Acquisition 

Vessels acquired in FY 2008 – 09 

Dry Bulk

Vessels Year Built DWT (m.t.)

Tankers

  Vessels Year Built DWT (m.t.)

- - -

- - -

Jag Aabha 2008 74,500

Jag Aanchal 2008 74,500

 Sub Total : Vessels - , DWT(m.t.) - Sub Total : Vessels - 2, DWT (m.t.) - 

149,000 

Total : Vessels - 2, DWT (m.t.) - 149,000 

Acquisition 

Vessels acquired in FY 2007 - 08 

Dry Bulk

Vessels Year Built DWT (m.t.)

Jag Ratan 1994 73,350

Jag Riddhi 1997 47,240

- - -

- - -

Tankers

  Vessels Year Built DWT (m.t.)

Jag Prerana 2007 47,400

Jag Lakshita 2000 147,000

Jag Lateef 2000 147,092

Jag Pushpa 2007 47,400

 Sub Total :Vessels - 2, DWT(m.t.) -

99,419Sub Total : Vessels - 4, DWT (m.t.) - 

388,892 

Total : Vessels - 6, DWT (m.t.) - 488,311 

Acquisition and Sales 2006-07

 Acquisition 

Vessels acquired in FY 2006 - 07 

Dry Bulk

Vessels Year Built DWT (m.t.)

Jag Akshay 1994 73,350

Jag Arjun 1996 164,796

- - -

- - -

- - -

Tankers

  Vessels Year Built DWT (m.t.)

Jag Panna 2007 37,154

Jag Layak 1996 147,834

Jag Parwar 1988 29,998

Jag Payal 2007 37,159

Jag Prakash 2007 47,400

 Sub Total : Vessels - 2, DWT(m.t.) -

238,146Sub Total : Vessels - 5, DWT (m.t.) -

299,545 

Total : Vessels - 5 , DWT(m.t.) - 412,240

Acquisition and Sales 2005-06

 Acquisition 

Vessels acquired in FY 2005 - 06 

Dry Bulk

Vessels Year Built DWT (m.t.)

Jag Ravi 1997 45,342

Jag Rahul 2003 52,364

Jag Reena 2000 45,659

Tankers

  Vessels Year Built DWT (m.t.)

Jag Lyall 2006 110,531

Jag Lalit 2005 158,344

     

 Sub Total : Vessels - 3 , DWT(m.t.) -

143,365Sub Total : Vessels - 2 , DWT(m.t.) -

268,875 

Total : Vessels - 5 , DWT(m.t.) - 412,240

Acquisition and Sales 2004-05

Acquisition 

Vessels acquired in FY 2004 - 05 

Dry Bulk

Vessels Year Built DWT (m.t.)

Jag Radha 1983 35,676

Jag Rupali 1983 37,092

  

   

     

Tankers

  Vessels Year Built DWT (m.t.)

Jag Labh 1988 96,551

Jag Pahel 2004 46,319

Ardeshir H Bhiwandiwalla

1992 265,955

Jag Lok 2005 158,280

 Sub Total :Vessels - 2 , DWT(m.t.) - 

72,768Sub Total : Vessels - 4 , DWT(m.t.)

- 567,105

Acquisition and Sales 2003-04

Acquisition 

Vessels acquired in FY 2003 - 04 

Vessels acquired in FY 2003 - 04 

Tanker

Vessels Year Built DWT (m.t.)

Jag Anjali 1986 66,203

Jag Lata 2003 105,716

Jag Pankhi 2003 46,273

Jag Leena 1985 95,007

Jag Lamha 1987 98,214

Vasant J Sheth 1990 2,61,167

Jag Laila 1987 96,967

CSR:

Vasant J Sheth Memorial Foundation

The Vasant J. Sheth Memorial Foundation is a registered charitable trust, dedicated to promoting education, welfare, health, conservation and publishing in maritime related areas. Founded in 1993 in memory of the Indian shipping pioneer, Vasant J. Sheth, the Foundation has funded and supported over 70 projects. To achieve its objectives, the Foundation works with human and capital resources from different sections of society. Projects range from scholarships, health initiatives, heritage research, environment conservation and protection and disaster relief programmes.In its 18th year now, the Foundation has emerged as a pioneering maritime institution in India.

Study Of Behaviour of Economic Parameter

Production:

Year production(lakh tons)

2008-09

2,594.57

2009-10

2836.28

2010-11

1914.27

2011-12

1,376.25

2012-13

1709.62

Bar graph representing production:

2008-09

2009-10

2010-11

2011-12

2012-13

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

production(lakh tons)

production(lakh tons)

Result: production increases and decreases in successive years

Year Profit(in lakhs)1998-99 1642.31999-00 11142000-01 1765.32001-02 1971.92002-03 2272.92003-04 4711.32004-05 8087.92005-06 8386.12006-07 8833.12007-08 13568.12008-09 13848.22009-10 3957.52010-11 2664.62011-12 1433.4

Line graph to represent profit:

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-120

2000

4000

6000

8000

10000

12000

14000

16000

Series1

Bar Graph representing Profit:

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-120

2000

4000

6000

8000

10000

12000

14000

Series1

Result: Profit shows steep growth till 2008-09 but from 2009-10 company makes less profit in comparison to the previous one’s

Price:

Year Price1998-99 8810.21999-00 9289.62000-01 9146.42001-02 10806.82002-03 11724.32003-04 9554.72004-05 13519.42005-06 204922006-07 19347.72007-08 19975.12008-09 25945.72009-10 28362.82010-11 19142.72011-12 13818.42012-13 17096.2

1 2 3 4 5 6 7 8 9 10 11 12

0

5000

10000

15000

20000

25000

30000

Series1Series2

Series3

Series1Series2Series3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

0

5000

10000

15000

20000

25000

30000

Year

YearSeries2Price

Result: price shows non-uniform pattern

Wages:

Year Wages2002-03 77.772003-04 87.37

2004-05 117.212005-06 115.62006-07 162.742007-08 176.822008-09 208.072009-10 182.152010-11 185.12011-12 174.18

Line graph representing wages Of the company:

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

0

50

100

150

200

250

Wages

Wages

Bar graph representing wages in a more clear manner:

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

0

50

100

150

200

250

Wages

Wages

Result: wages almost increases every year

Investment:

Year Investment

1998-99 20307.2

1999-00 21456.6

2000-01 21334.6

2001-02 20123.7

2002-03 21868

2003-04 22704.4

2004-05 30312.6

2005-06 42687.9

2006-07 42553.4

2007-08 52656.8

2008-09 66579.7

2009-10 79947.7

2010-11 90400.1

2011-12 88743

2012-13 92230.3

Line graph to represent Investment:

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-130

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

Series1

Result: Investment shows increasing pattern

Productivity:

Year % increase in productivity

1998-99

7.72

1999-00

6.98

2000-01

7

2001-02

11.1

2002-03

15.2

2003-04

11.79

2004-05

13.88

2005-06

15.03

2006-07

16.55

2007-08

18.04

2008-09

18.77

2009-10

22.36

2010-11

17.65

2011-12

19.73

Line Graph representing % increase in productivity:

1998-99

2000-01

2002-03

2004-05

2006-07

2008-09

2010-110

5

10

15

20

25

% increase in productivity

% increase in productivity

Result: Productivity shows increasing pattern

Shipping Corporation of India

Shipping Corporation of India

Type State-owned enterprise

Public (BSE: 523598 NSE : SCI)

Industry Shipping

Founded Bombay, 1961

Headquarters Corporate Centre,

Madame Cama Road,

Mumbai 400 021 India

Key people Sabyasachi Hajara (Chairman andManaging

Director)

Revenue 3,902.69 crore (US$706.39 million)[1]

Website www.shipindia.com

The Shipping Corporation of India (SCI) is a company owned by the Government of India based out of Mumbai that operates and manages vessels that services both national and international lines.

History

SCI Head Office at Nariman Point Mumbai

SCI was established on October 2, 1961 by the amalgamation of Eastern Shipping Corporation and

Western Shipping Corporation. Two more shipping companies, Jayanti Shipping Company and Mogul

Lines Limited, were merged with SCI in 1973 and 1986 respectively.[3]

SCI started out with 19 vessels. It gradually metamorphosed into a conglomerate having 83 ships of

4.6 million metric tons deadweight (DWT) with interests in 10 different segments of the shipping trade.

About SCI

About SCI

The Shipping Corporation of India was established on October 2nd, 1961, by the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. Starting out as a marginal Liner shipping Company with just 19 vessels, the SCI has today evolved into the largest Indian shipping Company. The SCI also has substantial interests in various segments of the shipping trade. SCI’s owned fleet includes Bulk carriers, Crude oil tankers, Product tankers, Container vessels, Passenger-cum-Cargo vessels, Phosphoric Acid / Chemical carriers, LPG / Ammonia carriers and Offshore Supply Vessels. Sailing through for nearly five decades, the SCI today has a significant presence on the global maritime map. As the country’s premier shipping line, the SCI owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business; servicing both national and international trades. In view of the demand from Indian trade, the SCI has diversified into a large number of areas. The SCI is today the only Indian shipping Company operating: break-bulk services, international container services, liquid/dry bulk services, offshore services, passenger services. In addition, the SCI mans and manages a large number of vessels on behalf of various government departments and organizations. The SCI has immensely contributed to the growth of India’s EXIM trade and the national exchequer, by being a net earner/saver of valuable foreign exchange. Over the years, SCI has been a lifeline for the country in times of emergency and distress, by ensuring continued and uninterrupted supply of crude oil, which drives the country’s economy. Liberalization and globalization of the Indian economy has presented the SCI with a suite of growth and diversification opportunities. The SCI’s growth has been additionally spurred on by the presence of a modern, young and diversified fleet, operated by a large pool of well trained and experienced manpower, both onshore and at sail. As a profitable commercial venture of the Government of India, the SCI has an excellent track record of profitability since its inception. The SCI’s annual performance has consecutively been rated excellent for a record 18 times, under the Memorandum of Understanding (MoU) signed with the Government of India. The Government of India has conferred “Navratna” status to SCI on 01.08.2008 - enhanced autonomy and delegation of powers to the Company towards capital expenditure, formation of Joint Ventures, mergers, etc. 

Continued profitability of the SCI is been due to a slew of innovative and timely strategies and measures adopted by the SCI management. Amongst these include, inter alia, judicious and optimal utilization of available tonnage, by deploying it in the most remunerative sectors; commencement of new services in niche markets; identification and expeditious disposal of value destroyers or non-performing assets; forging alliances with leading market players to enhance cargo; availability and apportioning of expenses; and administrative cost cutting. The SCI takes pride in being a responsible and socially committed owner, placing greater

emphasis on the safety of life, vessels, cargo and the environment it operates in. Today, the SCI has evolved into a highly quality and safety conscious organization. Not surprisingly, the SCI has received numerous awards and accolades from various national and international organizations for excellence in customer satisfaction, operational efficiencies, human resource training and emergency preparedness. In tune with the global trend for specialization and the premium placed on core competencies, the SCI has charted a definitive course of action for the future. Thrust areas for growth and diversification focus on energy transportation, including a sunrise segment like transportation of LNG and containers. The SCI forays into new thrust areas could either take the form of direct capital investment or by forging strategic and symbiotic alliances with significant market players in the market. The SCI has heralded India’s entry into the specialized field of LNG transportation, by acquiring a stake in the two Indian LNG transportation agreements contracted till date, after a global bidding process. SCI is the only Indian shipping company engaged in transportation of LNG, a vital fuel for India’s power plant and chemical / petrochemical industry. For the same purpose, SCI has formed three Joint Ventures with one vessel each. On two of these LNG vessels, SCI is managing onboard operation and technical management and the remaining vessesl is fully manned by SCI. The SCI possesses all the ingredients essential for emerging as a truly world class international shipping Company. The endeavour of the management is to facilitate the release of boundless energy and initiative streams, which will be channelled for the growth and prosperity of the Company and the nation.

Recent contracts

On 17 September 1991 SCI signed Contracts with STX Shipbuilding Co. Ltd. of South Korea for

building and delivering six Newbuilding LR-I Product Tankers. This is the largest shipbuilding

contract in terms of value, signed by SCI since its inception.

On 14 November 2006, SCI signed Contracts with Hyundai Samho Heavy Industry, of South

Korea for building and delivering two Newbuilding 4,400 TEU Container Vessels. The deliveries

of these vessels are scheduled by the end of November 2008.

Fleet

The SCI operates a fleet of 84 vessels (January 2006) totaling 4.93 million DWT. It also manages 53

vessels (January 2006) totaling 63000 DWT on behalf of various Government Departments and other

organizations

Services

Liner and passenger services

Bulk carrier and tanker services

Offshore services

Liquefied Natural Gas

Major clients

Indian Oil Corporation Ltd.

Bharat Heavy Electricals Ltd.

Steel Authority of India Ltd.

Oil & Natural Gas Corporation Ltd.

Reliance Industries Ltd.

Bharat Petroleum Corporation Limited

Hindustan Petroleum Corporation Ltd.

British Petroleum

British Gas

Shell

Services:

TankersThe SCI is the largest Tanker owner in India, with a well-diversified fleet of crude Tankers consisting of all sizes: MR, LR-I, LR-II, Aframax, Suezmax and VLCC Tankers. The SCI's Tanker tonnage paralleled the growth of Indian oil industry since the mid-1970s. Till late 1990s the tonnage predominantly catered to Indian crude and product transportation.  This was done keeping in view the specific constraints of terminals/ports in India and infrastructural limitations like draft, availability of tankages, length/capacity of jetties, etc. The SCI's Tanker Commercial Department looks after scheduling and deployment of Tankers for feeding crude to various Indian oil refineries. Lighterage operations on the east and west coasts are also undertaken, to facilitate quick turnaround of Tankers, which otherwise cannot call on ports due to port restrictions/limitations. The department also ensures commercial deployment of in-chartered tonnage, to meet its obligations of lifting cargo under the Contract of Affreightment (COA).

Bulk CarriersThe SCI is presently the major Bulk Carrier operator in India, with an assortment of 12 Bulk Carriers, spanning the Handymax and Supramax sizes of vessels. The average fleet age of the Bulk Carriers is about 8 years, but individual vessels range from 0 years to 25 years in age. At the time of acquisition, the vessels had been ordered after carefully considering the need and utility of these vessels for India-centric trade. However, there is no physical constraint for these vessels cross-trading worldwide. They carry a variety of cargo like iron ore, coal, coke, grain, fertilizer, steel products, plywood, bauxite, etc. 

OffshoreOffshore Services Department provides following services to offshore industry:

 

1) SCI owns a fleet of 10 No.70 T Bollard Pull and with 5400 BHP Anchor Handling-Towincum-Supply Vessels (AHTSVs).The vessels are retro fitted with Dynamic Positioning System (DP I), Fresh Water Generator, partial UKOOA ‘C’ compliant.Out of 10 AHTSVs,5 vessels are fitted with Fire fighting System (FIFI I) whereas other 5 vessels are without FIFI I system. Presently, all the 10 AHTSVs are on charter to ONGC.

 

These vessels offer following services:

Towing & Anchor handling operations in Offshore. Carriage of men and materials ( fuel oil, bulk cement and byrite, deck cargo, refer cargo,

pot water, drill water etc. ) between base and offshore installations as well as between Offshore installations.

Carry out standby and rescue operations in offshore, if required. Carry out routine surveillance in offshore for safety and security reasons. Standby at SBM Tankers in Offshore. Carry out Fire Fighting duties by FIFI vessels.

2) SCI also offers Operations, manning, maintenance and Management (O&M) services of following vessels owned by Indian E&P Company, Oil & Natural Gas Corporation Ltd. (ONGC):

Seismic Survey Vessel Well Stimulation Vessel Multi Support Vessel Diving Support Vessel Geotechnical Vessel Offshore Supply Vessels.

3) SCI has ambitious plan for expansion of offshore fleet with versatile vessels and has already on order following vessels :

4 Nos. 80 T AHTSVs with DP I, FIFI, UKOOA C partial compliance, etc. which are on order with Bharati Shipyard.  The vessels are expected to be delivered in 2010-11.

2 No. 120 T AHTSVs of Aker AH 03 Design, with DPS I, FIFI, UKOOA ‘C’ partial compliance, etc. which are on order with Cochin Shipard Ltd.,.  The vessels are expected to be delivered in 2011-12.

2 Nos. Platform Supply Vessels of CD design on order with Cochin Shipyard Ltd.  The vessels are expected to be delivered in 2011-12.

Shipbuilding ConsultancyThe SB & S department also provides ‘Technical Consultancy’ assistance to various organizations for their ‘Tonnage Acquisition Programme’. The organizations include: The Andaman & Nicobar Administration, The Union Territory of Lakshadweep, Geological Survey of India, Directorate General of Lighthouses & Lightships and Department of Ocean Development of the Government of India. Consultancy assistance rendered for newbuilding vessels includes: 1. Project Viability and Feasibility: market study, obtaining statuary approvals and selection of ship-building yards through international tendering procedures. 

2. Design Consultancy: preparation of technical specifications, preliminary GA plan, preliminary machinery layout plan and preliminary accommodation layout plan. 3. Project Management: preparation of ship-building contract, monitoring of finances during construction, delivery protocols and related documents, and post-delivery and guarantee matters. 4. Site Supervision: plan approval, ship-building construction supervision at yard, test & trial supervision, delivery and acceptance of vessels. Consultancy assistance rendered for acquisition of second-hand ships includes: Identifying the type and size of vessels, receipt and evaluation of offers, inspection of class records, physical inspection of vessels, processing specific proposals for owners/Government approval and taking delivery of the vessels etc. Clients can expect world class services from the SCI, making use of the latest technology available and the vast talent pool comprising experts in shipping industry. 

ContainerSCI’s cellular container services have now matured from their infancy stage to adult stage. 'M.V. LAL Bahadur Shastri' along with M. V. Rajiv Gandhi & M.V. Indira Gandhi have completed 16 years in service. With the induction of two 4400 TEU vessels namely M.V. SCI CHENNAI and M.V. SCI MUMBAI, our container vessel strength now stands increased to five vessels. In addition, we have in-chartered state of art cellular container ships to augment our fleet strength. Operating container ships flying different flags and manned by crews of different nationality has broadened SCI’s outlook  and has benchmarked its activities with the best in the industry by successfully bridging the gap between the global operators and SCI on proactively innovating, adapting, modernising its organizational culture and work practices. The focus of SCI and especially CONOPS department has always been to be alive to the new challenges in the industry and adopt the best industry practices and provide its business partners and clientele safe, reliable and economic shipping services, which is an integral part of our vision objective. During the last year, we have made conscious efforts to become even more eco-friendly by prudent fuel management and operational scheduling of ships and promoting coastal movement of containers along the Indian coast and we have successfully expanded our coastal business & today we are one of the major coastal operators.

Passenger ServicesDomestic Passenger-cum-Cargo Services In addition to international operations, the SCI, with its two owned Passenger-cum-Cargo vessels and 30 managed vessels, operates domestic passenger and cargo transportation services between the mainland, Andaman & Nicobar group of islands, on behalf of the Government of India. The services offered include:

Andaman & Nicobar Islands Administration - 25 vessels comprising Passenger vessels and (Passenger-cum-Cargo vessels)  

Break Bulk The SCI is the only Indian shipping company providing overseas Liner Break-bulk

services to the Indian trade. The SCI arranges carriage of Break-bulk cargoes on a space charter basis from various regions across the globe including USA and Far East. This is offered for imports and exports in & out of India, which include shipments of Over-Dimensional Cargoes (ODC)/ Project cargoes/Heavy Lift cargoes/IMO Class I Cargoes and containers.

  The SCI continues to operate its India-UK Continent Break-bulk service regularly

from European ports to India jointly with Rickmers Linie, on a space sharing basis on their vessels.

  The general port rotation for this service is: Antwerp - Hamburg - Genoa - Mumbai - Chennai

 

Divisions:

Bulk Carriers & Tankers

To serve India's shipping needs primarily in energy transportation through movement of all types of dry bulk, liquid and gaseous cargoes providing world-class service to the clients at optimum costs mindful of environmental and societal obligations while concurrently maintaining a significant logistic support to worldwide industrial requirement by participation in cross-trades and to this end, strive for strategic partnerships to harness synergies, fleet upgradation and expansion.

Liner & Passenger

 Mission

To provide timely, affordable and quality Liner cargo service to the Indian Exim trade and to man, maintain and manage the vessels entrusted to the Division to the full and complete satisfaction of the respective owners.

Technical & Offshore

 Mission

To provide world class Technical Consultancy Services to SCI as well as to our clients and to be a major player in the Indian Offshore industry by providing a safe, efficient and quality service.

Finance

Objectives

Statutory compliances Transparency Appropriate disclosure Optimum uitlisation of funds Maximization of returns

Personnel & Administration

Mission

To provide the right kind of people and policies to divisions and departments to achieve their business objectives

Fleet:

Fleet Profile

The overall Fleet Position as on 01.07.2012 -  75 Ships

 

GT     -   3123765.00

DWT  -   5531009.10

Particulars No. G.T. DWT

Tanker - - -

Crude Oil 20 1293283 2358122.23

Product 15 558772 952728

Chemical 1 21035 33058

Gas 2 35556 35202

VLCC 4 647232 1274175

Bulk Carriers 11 349246 590697

Liners 7 186899 255845

Offshore Supply 14 22042 26041.57

Passenger-cum-Cargo 1 9700 5140

Total 75 3123765 5531009.10

 

Delivery taken of new vessels during the year:

Vessel Name Type Yard Built

Swarna Sindhu LR1 Product Tanker STX Shipyard South Korea

Swarna Ganga LR1 Product Tanker STX Shipyard South Korea

Swarna Brahmaputra LR1 Product Tanker STX Shipyard South Korea

Swarna Godavari LR1 Product Tanker STX Shipyard South Korea

Swarna Krishna LR1 Product Tanker STX Shipyard South Korea

Swarna Kaveri LR1 Product Tanker STX Shipyard South Korea

Swarna Jayanti LRI1 Product Tanker Hyundai Heavy Industries Ltd. South

Swarna Kamal LRI1 Product Tanker Hyundai Heavy Industries Ltd. South

Desh Mahima Aframax Crude Oil Tanker Hyundai Heavy Industries Ltd. South

Desh Garima Aframax Crude Oil Tanker Hyundai Heavy Industries Ltd. South

Desh Suraksha Aframax Crude Oil Tanker Hyundai Heavy Industries Ltd. South

Desh Samman Aframax Crude Oil Tanker Hyundai Heavy Industries Ltd. South

Vessels disposed of during the year:

Vessel Name Year Yard Built

Major Hoshiar Singh Product Tanker .

Major Shaitan Singh Crude Oil Tanker .

MT Lance Naik Albert Ekka Product Tanker .

Havildar Abdul Hamid Crude Oil Tanker .

Lance Naik Karam Singh Crude Oil Tanker .

Col Ardeshir Burzor Tarapur Crude Oil Tanker .

Composition

CSR:

OverviewSCI, through its corporate policy and philosophy, has committed itself to social responsibility for the benefit of society at large.SCI formulated its CSR Policy on 19 March 2009 and earmarked 1% of Net Profit of preceding year towards CSR. Subsequently, in March 2010, Department of Public Enterprises (DPE) issued “Guidelines on Corporate Social Responsibility for Central Public Sector Enterprises”. SCI policy on CSR conforms to these guidelines.To avoid resources from spreading thin, SCI’s CSR initiatives target specific areas. These are

• Education• Scholarship to meritorious students belonging to SC, ST and OBC categories.• Imparting Vocational Training• Skill Development• Health and Family Welfare• Sanitation and Public Health• Relief to Victims of Natural Calamities• Promotion of Art and Culture  

Keeping in view the expertise in the field of CSR, SCI has signed a Memorandum of Understanding (MOU) with Tata Institute of Social Sciences (TISS), Mumbai, for the preparation, monitoring, and evaluation of CSR initiatives of SCI

Study of behaviour of Economic Parameter Of Shipping Corporation Of India:

Production:

Year Production(lakh Tons)

2007-08

3,543.42

2008-09

3,726.84

2009-10

4,166.64

2010-11

3,463.12

2011-12

3,543.42

Bar Graph Representing production:

2007-08

2008-09

2009-10

2010-11

2011-12

0.00500.00

1,000.001,500.002,000.002,500.003,000.003,500.004,000.004,500.00

Production(lakh Tons)

Production(lakh Tons)

Result: Production almost shows similar type of pattern

Profit:

Line graph presenting profit:

Year Profit(in lakhs)1998-99 2462.4

1999-00 2013.3

2000-01 1616.1

2001-02 3825.6

2002-03 2415.6

2003-04 2747.8

2004-05 6269.9

2005-06 14199.1

2006-07 10422

2007-08 10145.8

2008-09 8139

2009-10 9406.7

2010-11 3769.1

2011-12 5673.5

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-120

2000

4000

6000

8000

10000

12000

14000

16000

Profit(in lakhs)

Profit(in lakhs)

Scatter diagram representing profit in a more crystal manner:

0 2 4 6 8 10 12 14 160

2000

4000

6000

8000

10000

12000

14000

16000

Profit(in lakhs)

Profit(in lakhs)

Result: Profit shows non-uniform movements

Wages:

Line Graph Representing wages:

Result: wages till 2008-09 increases but later that year takes a sharp drop and maintain the same value in the next year

Year Wages2005-06 602006-07 602007-08 752008-09 1172009-10 1002010-11 100

Line graph Representing Investment:

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-120

20000

40000

60000

80000

100000

120000

140000

investment(lakhs)

investment(lakhs)

Result: Investment somehow increases every year

Pie graph Representing investment in a more clear manner:

Year

Investment(lakh) 1998-99 35598.7

1999-00 36001.3

2000-01 33912.5

2001-02 34831.6

2002-03 31728.6

2003-04 34309.7

2004-05 37682.7

2005-06 49947.6

2006-07 57345.2

2007-08 63444.4

2008-09 70863

2009-10 86801.2

2010-11 90338.6

2011-12 118832.8

investment(lakhs)

1998-99 1999-002000-01 2001-022002-03 2003-042004-05 2005-062006-07 2007-082008-09 2009-102010-11 2011-12

Price:

Year Price1998-99 24144.5

1999-00 9289.6

2000-01 9146.4

2001-02 10806.8

2002-03 11724.3

2003-04 9554.7

2004-05 13519.4

2005-06 20492

2006-07 19347.7

2007-08 19975.1

2008-09 25945.7

2009-10 28362.8

2010-11 19142.7

2011-12 13818.4

2012-13 17096.2

Line graph representing price of the company:

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-130

5000

10000

15000

20000

25000

30000

Price

Price

Result: Price of the company fluctuates up and down throughout the year

% increase in productivity:

Year % increase in Productivity1998-99 64.18

1999-00 85.98

2000-01 74.89

2001-02 85.19

2002-03 90.47

2003-04 58.17

2004-05 63.72

2005-06 73.61

2006-07 58.53

2007-08 51.4

2008-09 45.47

2009-10 54.32

2010-11 47.26

2011-12 30.85

Area graph representing % increase In productivity:

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-120

102030405060708090

100

% increase in Productivity

% increase in Productivity

Result: productivity shows high jump in the initial years but gets low in last years