Bharati Shipyard Limited

THE SAILING STORY…..

Representing members

| Group : 1.5 | Section : A |04/03/10 1

 Global Ship building industry:
History
 The shipbuilding industry is a global industry and has
been witnessing dramatic changes in global
leadership. At the beginning of the 19th Century, USA
was the world leading shipbuilding nation. Great
Britain became the world leader (in 1882 it captured
80% of world market) during 1850- 1945. After the
Second World War Germany and other European
countries took over leadership from Britain.


| Group : 1.5 | Section : A |04/03/10 2

Global Shipbuilding
Snapshot

| Group : 1.5 | Section : A |04/03/10 3

Global market presence

| Group : 1.5 | Section : A |04/03/10 4

Plans across the globe

| Group : 1.5 | Section : A |04/03/10 5

| Group : 1.5 | Section : A |04/03/10 6
World order book
 Order levels were fairly stable from between 1998-2003.
However, from 2003 order book has witnessed a strong
growth. Orders book increased from 109.5 mn dwt in
 2002 to 164.8 mn in 2003 and this growth in order book
has continued till 2007. Order book has increased at a
CAGR of 31% in period of 2003 to 2007. Current world
order book (2007) stands at 488.5 mn dwt, constitutes
47% of world’s fleet and is spread over several years,
with few players booked till 2012-2013.
Growth in order book is mainly attributed to

 Growing Global economies

 High freight rates
 Regulations & Ageing Fleet

| Group : 1.5 | Section : A |04/03/10 7

 HISTORY OF INDIAN SHIPBUILDING
India's Shipbuilding Industry has been recognized by the Government of India as one of the strategic
industries to be developed to meet the country's Defense requirements and shipping tonnage under the
national merchant fleet. The existing Indian shipping fleet is however, small compared to other countries
with large registries and tax havens. Ninety per cent of all India-owned ships are foreign built, and
shipyards in India use mostly imported equipment. Overall, there are 28 large, medium and small
shipyards, many of them combining ship repair services. Major shipyards are in the public sector. India's
share in international shipbuilding is currently quite low and there are very few private sector shipyards.
India currently accounts for slightly over 1% of the worldwide shipbuilding order book. However, more
than half of the order books of Indian shipyards pertain to exports.

The Indian shipbuilding industry can be divided into three distinct segments:

Public sector Shipyards: The public sector shipyards build merchant class ships. These include
Hindustan Shipyard, Cochin Shipyard, Hoogly Dock & Port Engineers and Central Inland Water
Transportation.

Defence Shipyards: There are three naval shipyards under the purview of the Ministry of Defence (MoD),
which include Mazgaon Dock, Goa Shipyard and Garden Reach Shipbuilders & Engineers.

Private Shipyards: India has two mid-sized private shipyards namely ABG Shipyard and Bharati
Shipyard Ltd.

| Group : 1.5 | Section : A |04/03/10 8

 About Bharati Shipyard
Bharati Shipyard was originally formed as a partnership firm in 1968 and had a small
shipyard at Ratnagiri. Later, in 1976, it converted into a private limited company. Thereon,
the company has graduated to own and developed yards at various locations in India while
simultaneously enhancing its manufacturing capabilities tremendously.The product range
has been upgraded from simple inland cargo barges through sophisticated deep-sea fishing
trawlers and state-of-the-art dredgers to technological marvel of the highly maneuverable
and power-packed Ocean Going Tractor Tugs, Cargo/Container Ships and Tankers.
Promoters of the company P C Kapoor and Vijay Kumar are both naval architects from the
Indian Institute of Technology (IIT) Kharagpur.

BSL currently exports ~68% (value terms) of its production to countries like Europe, United
States of America & the Middle East. Its international clientele includes companies like
Al Jaber Est., HalulOffshore Services, Bourbon Supply Investments; The Clipper Group-
Bahamas; NOR Lines AS among others. Besides, its Indian client list includes The Great
Offshore Ltd., Reliance Industries Ltd., Gujarat Maritime Board, Indian Navy, Mumbai Port
Trust, Kandla Port Trust etc.
BSL acquired all the shipbuilding plant, machinery & equipments of Swan Hunter (Tyneside)
Shipyard Ltd. in April 2007. Swan Hunter Shipyard, located at Newcastle, United Kingdom
| Group : 1.5 | Section : A |04/03/10 10
| Group : 1.5 | Section : A |04/03/10 11
Indian Clients
•Mumbai Port Trust
•Kolkata Port Trust
•Chennai Port Trust
•Kandla Port Trust
•Paradip Port Trust
•The Great Offshore
•Reliance Industries Ltd.
•Gujarat Maritime Board
•Indian Navy
•Ministry of Surface Transport
•
•Shipping Corporation of India
Overseas Clients
•Qatar Shipping Company – Qatar
•Cyprus Ports Authority – Cyprus
•Al Jaber Est. Abu Dhabi
•Halul Offshore Services, Qatar
•Tartous Port General Company
•Group Bourbon France
•
•Opielok Berrederungs, Germany
•Clipper Group Norway
•Norlines, Norway
•Ultra Petrol, Argentina
•Man Ferostaal, Argentina
•Norwegian Shipping Ltd.
| Group : 1.5 | Section : A |04/03/10 12
| Group : 1.5 | Section : A |04/03/10 13
Graphical representation of
profit

| Group : 1.5 | Section : A |04/03/10 14

| Group : 1.5 | Section : A |04/03/10 15
 The Affect
 Bharati Shipyard Ltd. lost some of its major
overseas orders and even the companies who
had placed orders on it were finding reasons to
cancel them perhaps due to overall decrease in
freight charges across the world apart from the
slowdown of the world economy. Moreover
some of the major clients took shelter in
different companies across different nations
due to difference in labour loss and government
policies.

| Group : 1.5 | Section : A |04/03/10 16

 Measures taken
 Bharati Shipyard started concentrating on
Indian market rather than global market. They
hold the privilege of having Rs550 cr. (approx)
of orders from Indian ship owners, shipping
agencies like Port Trust of India and Defense
since October 2008.


 Apart from the above, the company also

decided to reduce its labour force.

| Group : 1.5 | Section : A |04/03/10 17

Pictures of some vessels made by Bharati Shipyard Ltd
Offshore supply vessels

Malviya

Halul24

| Group : 1.5 | Section : A |04/03/10 18

Pictures of some vessels made by Bharati Shipyard Ltd
Tractor / Stern Tugs

| Group : 1.5 | Section : A |04/03/10 19

Picture of Dry Docks

| Group : 1.5 | Section : A |04/03/10 20

Jack up Rigs

| Group : 1.5 | Section : A |04/03/10 21

Other Vessels Made…

| Group : 1.5 | Section : A |04/03/10 22

Picture from Kolkata Yard of Bharati Shipyard…

| Group : 1.5 | Section : A |04/03/10 23

THANK YOU!

| Group : 1.5 | Section : A |04/03/10 24