Dredging Corp plans China, Taiwan foray

Plan ready for becoming a Rs 1,000-cr firm by 2010.

Dredging Corporation of India (DCI), a mini-ratna category-I public sector undertaking, is planning to foray into China, Taiwan and the Middle East countries for capital dredging operations.

"We are planning to enter markets like China, Taiwan, Malaysia, Indonesia and the Middle East countries through joint ventures (JVs) with leading dredging companies," a senior DCI executive said.

Of estimated global dredging market of 7 billion euros, US and China account for 2.5 billion euros, though 50 per cent of these markets are protected and closed to competition, according to industry analysts.

Earlier, leading management consultant PricewaterhouseCoopers (PWC) had shortlisted Holland-based Boskalis and Dredging International of Belgium as potential JV partners for DCI to upgrade its skills in capital dredging projects.

"DCI is in talks with several dredging companies, for possible JVs, for its China and Taiwan foray. This will not be necessarily with Boskalis or Dredging International as they will be having a similar kind of arrangements in respective countries," a senior company executive said.

He said the company is exploring various options to enter these market without having conflict of interests in the overseas market; however, nothing has been finalised yet.

Currently, two of DCI's trailer suction dredger are working for a land reclamation for Busaytin project in Bahrain.

"One of our trailer suction hopper dredger (TSHD) is currently working in Bahrain. We may retain the TSHD in the Bahrain market only, as it will be difficult to recapture it once the company is out from an international market," he said.

Endorsing its overseas forays, PWC has also pointed out the need to establish marketing agents in different countries to understand and access the local markets.

PWC was appointed to benchmark DCI against reputed companies and assist DCI in preparing its 'corporate plan' for the period 2005-06 to 2009-10.

"PWC has also suggested setting up of project offices at various overseas locations wherever it is feasible for the company," the executive said.

PWC's draft corporate plan has outlined the blueprint to make DCI a Rs 1,000-crore dredging entity by 2010.