L&T to invest Rs 1000 cr for second shipyard

Larsen & Toubro (L&T) is planning to set up a mega shipyard in the country at an estimated investment of Rs 1,000 crore.

L&T owns a shipyard at Hazira near Surat for construction of high-technology vessels of up to 150 metre length and displacement of 20,000 tonne.

Currently, L&T is scouting for a deep water facility on the east and west coasts for its second shipyard.

"L&T will invest Rs 1,000 crore in the next three years. We are looking for a suitable waterfront with 12 metre draught for the project. The second yard will be ready by 2009," L&T Chairman and Managing Director A M Naik said.

The company is also looking for a CEO for its shipbuilding venture, Naik said. Naik clarified that the company will not enter into partnership for shipbuilding project.

"We have the expertise for ship building. We will not be focussing on general cargo vessel in the new project, instead we will go for specialised vessels," Naik pointed out.

To add, the company is also planning to set up three modular fabrication yard, including one in the Gulf.

Earlier, its shipyard at Hazira won a key contract for construction of four ships valued at over Rs 440 crore from the Netherlands-based Zadeko Ship Management CV. Production of the ships will start next month.

The Hazira shipyard will focus on construction of commercial vessels and warships for the Navy as well as the Coast Guard.

Further expansion programmes envisage installation of ship lifting system for new construction, repairs and refit of ships including defence and paramilitary vessels.

The company has made a foray in the dredging business by acquiring a majority stake in International Seaport Dredging Pvt Ltd, promoted by Belgian dredging multinational, Dredging International NV.

L&T has acquired 61 per cent stake in Dredging International, headquartered at New Delhi.

Naik said the acquisition is in line with the company's strategy to strengthen its position in ports and harbours.

"L&T wants to be a complete port and harbour operator with presence in terminal construction, dredging, marine installation and ship building," he added.