IDFC PE invests Rs260 crore in Goodearth Maritime

IDFC PE invests Rs260 crore in Goodearth Maritime
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First Published: Fri, Dec 21 2007. 06 53 PM IST
Updated: Fri, Dec 21 2007. 06 53 PM IST
New Delhi: Goodearth Maritime Ltd (GML), a leading dry bulk shipping company in India, announced on 21 December it has raised equity investment of Rs260 crore from IDFC Private Equity (IDFC PE).
The proceeds will be used to finance GML’s green-field ship building yard being set up in Tamil Nadu, as well as for the company’s entry into on-shore and off-shore oil drilling. The shipyard is expected to require a total investment of around $500 million (Rs1,975 crore) in the first phase, with a capacity to build about 25-30 ships a year, including VLCCs.
Said Anandam, chairman, GML: “We are in the process of making Goodearth Maritime a global shipping company, with a strong shipbuilding base in India. The potential of Indian shipbuilding economics will fully unfold in our yard near Cuddalore with third generation international standards of ship construction. It would give our ship owning a competitive edge in terms of size, quality and our commitment to Indian resources, both human and material.”
Luis Miranda, president and CEO, IDFC PE, said his firm had a large portfolio in the transport sector covering ports, airports, roads and logistics, and GML fills the gap in terms of the shipping and ship building sector. He said the investment in GML was IDFC PE’s largest till date.
Goodearth Maritime Limited (GML) is the flagship company of the Archean Group, which is a conglomerate of businesses spanning various interests such as ores and minerals, coal, common salt, industrial chemicals, shipping and ship building, and renewable energy.
GML owns and operates a fleet of six ships, and has a pipeline of nine ships which are to be delivered over the next three years.
IDFC PE, which manages a corpus of Rs2,850 crore ($630 million), is strongly focussed on infrastructure, and has invested in GMR Infrastructure (from which it has exited), Gujarat State Petronet, Delhi International Airport, L&T Infrastructure developers and Gujarat Pipavav Port, among others.
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First Published: Fri, Dec 21 2007. 06 53 PM IST