What is the planned fleet expansion for the shipping company?

The company plans to add 15-20 vessels between FY25 and FY27.

How much capital expenditure is allocated for the vessel expansion?

An estimated Rs 10,000 crore has been allocated for the capital expenditure.

What is the expected impact of the fleet expansion on revenue?

The expansion is projected to increase annual revenue by Rs 2,500-3,000 crore.

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Shipping Giant Plans Major Fleet Expansion

17 Jan

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Summary

Company to add 15-20 vessels by FY27.
Capital expenditure estimated at Rs 10,000 crore.
Expansion targets 20-25% capacity increase and revenue growth.

Shipping Giant Plans Major Fleet Expansion

The company is undertaking a substantial fleet expansion, with plans to introduce 15-20 new vessels between FY25 and FY27. This initiative represents a significant capital investment of approximately Rs 10,000 crore, primarily targeting tankers and bulk carriers to capitalize on escalating crude import requirements.

The strategic expansion is designed to enhance operational capacity by 20-25%, projecting an annual revenue increase of Rs 2,500-3,000 crore. Leveraging its Navratna status, the company anticipates preferential financing and governmental support for this crucial phase.

This expansion will also facilitate the retirement of older vessels, reducing the fleet's average age to around 13 years. The company's multi-channel offerings, including lending and fund management supported by proprietary technology, are expected to benefit from these network effects and drive scalable growth.