Date:26/11/2004 URL: http://www.thehindubusinessline.com/2004/11/26/stories/2004112602540700.htm

Back Bharati Shipyard plans to complete Pinky acquisition in 2 months

Our Bureau

Chennai , Nov. 25

THE Mumbai-based Bharati Shipyard Ltd plans to complete acquisition of the defunct Pinky Shipyard in Goa in 6-8 weeks.

The company will spend Rs 2 crore for the acquisition, and another Rs 7.5 crore on new plant and machinery at Pinky Shipyard, said Mr P.C. Kapoor, Director, Bharati Shipyard. The acquisition would be funded from Bharati's internal accruals, he said.

The company entered into an agreement with Pinky Shipyard in March. The acquisition would help Bharati to increase its capacity and productivity. Bharati would also benefit from reduced costs incurred on account of hire charges, he told newspersons.

According to Mr V. Kumar, Director, Bharati, the company hopes to get 20 per cent of its revenue from Pinky Shipyard, which would be used for fabrication. Further, some of the jobs being done at Bharati's shipyard in Ratnagiri, Maharashtra, would be moved to Pinky Shipyard, he said.

Pinky Shipyard has been building and repairing ships, sea going vessels and vessels for inland waterways. However, due to financial difficulties, Pinky Shipyard incurred losses during 1999-2000, said Mr Kumar.