Little impact of economic meltdown on Indian shipyards1 min read . Updated: 17 Dec 2008, 03:44 PM IST
Little impact of economic meltdown on Indian shipyards
Mumbai: Global economic meltdown had very little impact on Indian shipyards order books of which are intact unlike the major shipbuilding countries such as South Korea, China and Japan accounting for 84% of the global market.
“Despite the global economy not doing well and slowdown in certain sectors, Indian shipbuilding yards have not seen great impact," ABG Shipyard CFO Dhananjay Datar told PTI.
The global credit crisis has affected Korean and Chinese shipyards, which are seeing order cancellation in dry bulk and wet bulk carriers, he said.
The company has Rs11,400 crore worth of orders to build 105 ships. It is building 66 offshore supply vessels and 39 bulk carriers.
ABG Shipyard is the largest private shipyard in the country.
However, it is in talks with clients for orders on offshore supply vessels. “Enquiry on offshore vessels is good. We are talking to couple of people for new orders," he said.
Hindustan Shipyard, which handles both government and private clients, has not not seen any order cancellations, a top official of the company said.
It has on order to build 10 bulk carriers and five patrol vessels for Coast Guard.
Similarly, other shipyards such as Larsen and Toubro and Cochin’s order books are intact.
The main reason for non-cancellation of orders with Indian shipyards are because many of them are into building of specialised vessels such as offshore supply vessels and semi submersibles used in the energy sector.
“The demand for offshore supply vessels has not declined," Care Research Head Revati Kasture said.