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ShareMumbai: H K Mittal, chairman and managing director of Mercator Lines is set to buy Palghar shipyard in Maharashtra, currently owned by Mech Marine Engineers Pvt Ltd, according to sources familiar with the development.
"Mittal is doing this in his personal capacity and has already invested Rs 20 crore as an initial sum for a part-by-part buyout," added the source. Mittal was not available for a comment.
Following the acquisition, Mittal will join the league of established shipbuilders such as ABG Shipyard, Bharati Shipyard, Cochin Shipyard, Hindustan Shipyard, Mazagon Dock and Goa Shipyard.
Companies such as Larsen & Toubro, SKIL Infrastructure, Good Earth Maritime, Apeejay Shipping etc are also adding to the growing list of local private firms that have entered the shipbuilding sector.
In 2007 Mercator Lines and shipbuilder Mech Marine Engineers had formed a shipbuilding joint venture, known as Mercator Mech Marine Ltd, to build cargo-carrying ships.
"At a recent meeting between Mech Marine and Mittal, it was decided that all administrative decisions will now need Mittal's consent. Mittal is also looking at buying land around the shipyard for expansion. The goal is to be bigger than Pipavav Shipyard," said the source.
Palghar shipyard is cited on 200 acres.
Currently six ships are being constructed at the shipyard, which was independently set up by Mech Marine at a cost of Rs300 crore.
The ships built here are believed to be cargo-carrying types. The Palghar yard is capable of building ships of up to 150 metres in length, such as small tankers that can carry petroleum products.
