Luxury yacht firms target local nouveau riche

Imaging a high-powered meeting of a blue chip company in a Flybridge luxury yacht or on-tour CEOs opting to work from a premium yacht instead of a five-star hotel. Sounds Unbelivable? The scenario could turn real very soon.

Thanks to the steady rise in the fortunes of high networth individuals (HNIs) and companies, global yacht manufacturers and marina builders are planning to anchor in Indian waters.

Leading the pack is Italian luxury motoryacht maker, Ferretti Group. The British Pound 627 million (nearly Rs 3,500 crore) group has tied-up with Mumbai-based Marine Solutions to mark its foray in Indian market. The group is focussing on top-end yacht including Flybridge, where one can even sit on the top of the yacht.

"As HNIs in India are growing at the rate of 14.5 per cent every year, many more international yacht companies are eyeing the country. The Ferretti Group is already here. The Princess Group and Fairline are also expected to touch Indian shores. Yatch dealers are flooded with enquiries for owning luxury yatchs," a dealer told Business Standard.

Currently, very few Indians own a yacht, Liquor baron Vijay Mallya and industrialist Gautam Singhania being the exceptions. No one in the country owns top-end luxury yacht.

The market potential is huge and the yacht industry is expected to see a lot of action by 2007. According to Ferretti Group MD Alessandro Diomedi, the average price of a luxury boat ranges from ¤1 million (Rs 5.5 crore) to ¤40 million (Rs 220 crore) .

"With fast changing lifestyles, growing disposable incomes and a booming leisure travel industry the response to our move has been tremendous, we've received enquiries from an number of high profile corporate individuals and expect to kickstart operations from 2006," Alessandro said.

Marine Solutions MD Anuj Dutta said the luxury yachts are costly because of their advanced style solutions including seaworthiness and top speeds of 36 knots, in its larger models.

"Ferretti yachts are costlier because of they use solid cherry and other fine woods, leather upholstery and wood panelling, bascule glass windows, stern spoilers and external materials that are highly resistant to wear and tear. These elegantly styled cruisers ensures seaworthiness," said Dutta.

However, in the run-up to that, marina infrastructure and yacht harbours need to be built up. Leading yatch dealers said though the country has vast coastline, Kerala and Goa are only states to take concrete steps to set marina infrastructure. "We are lobbying hard with the Maharashtra government to set up such infrastructure," they said.

The Ferretti Group is also partnering with Indian dealers to inculcate the luxury yachting culture in India.

"We are targeting HNIs and corporates. We India will soon adopt the European style in convening board meetings and official discussions in a luxury yacht," Alessandro added.

Meanwhile, UK-based Walcon Marine is planning to team up with Mumbai-based company Acquasale Yacht and Powerboat Ltd to start marina infrastructure in Mumbai and Kochi. Walcon Marine has undertaken several marina development projects across the globe.

A cquasale is undertaking a feasibility study to set up a marina base in Mumbai. Acquasale Director Shakeel Kudroili said, "We are also exploring the options to set up marina in Kochi." Dutta of Marine Solutions pointed out that the increase in the number of India International Boat Show (IIBS) held in Kochi shows the interest of global majors in India.