Corporate

Presentation
Bharati Shipyard Limited

2
 About Bharati shipyard
Incorporation  In 1976, as a Private Limited Company in Mumbai
Incorporation

 Design and construction of various types of sea going, coastal, harbour,

Business
Business inland crafts and vessels. Specialized in ship repairs of technical nature.

 Vessels for offshore industry (OSVs, MSVs, PSVs, etc), Rigs, Maneuverable
Main
Main and power packed ocean going tractor tugs, Cargo ships, Tankers, Dredgers,
Products
Products etc

 Ship Yards at Ratnagiri, Ghodbunder (Maharashtra), Goa and Calcutta

Facilities
Facilities  Greenfield at Dabhol (Maharashtra) and Mangalore (Karnataka)
 Design office in Mumbai

 Total order book - ~Rs.5000 Cr; 66% are export orders

Order
Order book
book  ~75% of order book from offshore segment

 Reliance Industries, Great Eastern Shipping, Nor Lines AS – Norway, UP

Key
Key Offshore (Bahamas) Limited, Norwegian Offshore Shipping Ltd., Shipping
Customers
Customers Corporation of India, Coast Guard, India
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 Key Strengths
State
State of
of the
the art
art
facilities
facilities --
International
International Quality
Quality
Sound
Sound Standards
Standards
Fundamentals
Fundamentals --
cord
cord of
of 33 decades
decades
Key Strong
Strong order
order book
book
Key Strengths
Strengths
-- Multiple
Multiple Repeat
Repeat
Orders
Orders
Moving
Moving up
up the
the
Value
Value Chain
Chain --
Focus
Focus on
on Offshore
Offshore Specialized
Specialized Product
Product
Segment
Segment

4
 Firsts by Bharati

• Construction of a Self Propelled Cantilevered Independent Leg, Jack

up Drill Rig of the type.

• First in India to export a double hull tanker

• Built an Anchor Handling Tug cum supply vessel of over 120T

Bollard Pull

• Constructed ships for Reliance Industries, Great Eastern Shipping,

Bourbon Supply Investments, France, Man Ferrostaal, Germany

• An engine Room model to lay equipments in engine room

Malaviya Twenty One towing a
rig to Bahrain a day after its
delivery
 Locations for Yard Facilities
Ghodbunder, Maharashtra
 Area - 12 acres
 Builds hulls up to 125m
length
 Acts as a feeder yard to
Ratnagiri yard
Dabhol Shipyard,
Maharashtra
 Area - 300 acres
 Build vessels up to
1,00,000 DWT
 Largest yard of BSL
Goa - Pinky Shipyard
 Area - 5 acres
 Build vessels up to 5,000
DWT & 140m in length
Ratnagiri, Maharashtra
 Area - 25 acres
 Certified by International Ship & Port
facility Security (ISPS)
 Capable of fabricating and erecting upto
14 vessels simultaneously of various
sizes
Kolkata
 Area - 7 acres
 Builds vessels up to
125m in length and
22m in width.
Mangalore, Karnataka (Under
implementation)
 Area - 28.3 acres
 To build of vessels of ~65,000 DWT
 Commenced production with a
Platform Supply vessel
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 Dabhol Shipyard – The
Largest
 Area - 300 Acres, proposed to be built as
SEZ
 Capacity to build - Jack Up Drill Rigs,
Offshore Structures and ships up to
1,00,000 DWT
 To build large cargo vessels
 Floating dock of about 155m x 40 m. with
16,000 tonnes lifting capacity
 Proposed Capex Rs. 700 crores (Rs. 450
crores spent already)
 Designed by First Marine International, UK
 Majority of Swan Hunter, an UK yard,
equipments to be installed at the yard
- Had built air craft carriers, offshore Construction of Rig in progress
platforms and other very sophisticated
and advanced vessels and Cargo vessels
of 250,000 DWT 8
 Key Milestones
2009

2008-
2009 Acquired
Acquired
49.7%
49.7% in
in
Great
Great
Received
Received Offshore
Offshore
large
large orders
orders
2007 from
from Indian
Indian
Coast
Coast guard,
guard,
Great
Great
2005 offshore
offshore &
&
Norwegean
Norwegean
Acquired
Acquired Shipping
Shipping
equipments
equipments
from
from Swan
Swan
2004 Hunter
Hunter
Shipyard
Shipyard
FCCB
FCCB issue
issue (UK).
(UK).
1995-2004 of
of
US$
US$ 100
100 mnmn
1995
IPO
IPO of
of
1985 Rs.
Orders
Orders from
from Rs. 83
83 Cr
Cr
1976 RIL,
RIL, Great
Great
Eastern,
Eastern, Al
Al
Export
Export Jabar,
Jabar, Qatar
Qatar
Performance
Performance Shipping
Shipping
Award
Award from
from
First
First export
export EEPC
EEPC
Incorporati order
order
Incorporati
on
on

9
 Synergies with Great
Offshore
• Vertical integration within the group:
 Bharati Shipyard - a niche offshore vessel builder
 Great Offshore - a leading offshore vessel operator of India

• Work together on the Build, Operate, Repair (BOR) model

• Over 50% of GOL fleet has been made by BSL

• Provide significant advantages in repair and maintenance

• Strong operating and management team with vast track record

• Bharati Shipyard holds ~49.7% in Great Offshore

Strategic Acquisition

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 Rationale to Acquire TSL
 Bharati Shipyard is a leading ship builder which
specialises in construction of vessels for E&P
Sector.
 Tebma Shipyards Ltd (TSL) is also engaged in
construction of offshore vessels.
 Tebma has a broad based clientele including
international customers like: Trico of USA, DOF of
Norway, Fugro of Norway. Domestically Cochin
Shipyard Ltd (CSL), Indian Navy, Inland Waterways
Authority of India (IWAI) Dredging Corporation and
others are also its customers
TSL Product Offerings
 BSL - TSL Synergies

 Ready to use facility – Substantial savings in terms of cost and time

for constructing such facility.
 Speedier execution of existing contracts of BSL.
 Consolidation of existing facilities of BSL.
 MoU with Cochin Shipyard Ltd. – Direct access to niche defense
market.
 Existing order book and new order received from Fugro.
 BSL - TSL Synergies
Contd…
 Pan India presence for carrying out
Repair and other work.
 Access to skilled engineers and
qualified labour.
 Access to Dredger manufacturing
technology due to technical tie-up.
 The Way Ahead
• Build technologically advanced vessels including Semi-submersible
Rigs, FPSO, Offshore Structures, Chemical Carriers, Gas Tankers, etc
catering to premium segments of the Offshore Industry

• To focus on orders from the defence sector - to mitigate the cyclical

risk of the shipbuilding industry

• Upgrade technology to be at par with the global peers in the longer

term

• Enhance repair facilities - an evergreen industry with huge revenue

generation potential for Bharati

• Development of ancillary industries at the green field yards

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 Current Order Book

• Bharati’s Current Order book stands Rs. 5, 000 Crores

• Approximately 65 % of the order book comprises of export

orders

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 Board of Directors
Mr. PC Kapoor Shri P.C. Kapoor is a qualified Bachelor of Naval Architect from IIT Kharagpur with a vast
experience in Ship Construction, Ship Design and its management. He is a member of
MD, Promoter
several national level conventions and committees

Shri Vijay Kumar is also a qualified Bachelor of Naval Architect from IIT Kharagpur. He
Mr. Vijay Kumar was associated with Mazgaon Dock Ltd for seven years. He is currently the Secretary of
MD, Promoter the Shipyard Association of India and a convener of DGTD for Shipbuilding and Ship
Repair group.

Mr. VP Kamath Shri V. P. Kamath B.Com, CAIIB with a vast experience in Banking, Financial Services &
Independent Project Financing. He was a member of various Institutional Committees of All India
Director Financial institutions.

Mr. B L Shri B.L. Patwardhan is M.A. with specialisation in Economics and has a vast experience in
Patwardhan planning and Management. He had a long tenure with State Bank of India and also acted
Nominee as a consultant to Banks and financial institutions.
Director (SBI)

17
 Financials
Rs. Mn. FY 2007 FY 2008 FY 2009 FY 2010 FY 2011*
Hf. Yr.
Turnover 3,601 6,451 9,349 12,645 6,764
EBITDA (Without Subsidy) 685 1,284 1,714 2,357 1,275
PBT (Without Subsidy) 491 1,022 1,104 483 (57)

Add : Subsidy 617 597 850 836 775

PBT 1,108 1,619 1,954 1,534 769

PAT 732 1,073 1,333 1,388 514
EBITDA % of Turnover 19 20 18 19 19
PBT % of Turnover 14 16 21 16 12
PAT % of Turnover 20 17 14 11 8
Networth 2,449 5,789 7,026 8,508 8,880

Debt 5,555 4,316 10,033 22,928 28,000

* Unaudited Nos.
18 18
 Financials
Revenue (Rs. EBITDA (Rs. Mn)
Mn)
15,000

2500
10,000
2000
1500
2,357
12,648 1000 1,714
5,000 9,341 1,284 1,275
500 685
6,451 6,764
0
3,601 FY 2007 FY 2008 FY 2009 FY 2010 FY 2010
0 Hf. Yr.

FY 2007 FY 2008 FY 2009 FY 2010 FY 2010

Hf.Yr.

Turnover
Others
break up
26%

1600 PAT (Rs. Mn)

1400
1200
1000 Offshore
800 segment
1,333 1,388
600 1,073 59%
400 732 Rigs
200 514 15%
0
FY 2007 FY 2008 FY 2009 FY 2010 FY 2010
Hf. Yr.

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Yard Facilities

The Jack Up RIG

being constructed at
Dabhol yard

20
Various cranes at Swan
Hunter U.K.
Welding Gantry
2000 Tons x 42 Feet
Hydraulic Rolling Press
Fabrication Hall

24
Transportation of Mega
Block
Main Fab. Hall
Making of Rig

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Making of Rig

28
Making of Rig
Industry Outlook

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 Global Shipbuilding
• Trade Growth World Economic Growth
─ World GDP
growth
─ Oil production &
prices
─ Inventory levels
Global Trade
• Demand for • New vessel orders
commodities Deman ─ Shipyard capacity
─ Change in trade d ─ Replacement
patterns demand
─ Raw materials Global Shipping Tonnage ─ New building
sourcing prices
─ Steel / Refinery/ Suppl • Replacement orders
grain production y ─ Age of vessel
─ Market conditions
New Buildings Existing Fleet Scrapping ─ Regulatory
developments

• Commercial — Tankers (crude & product), dry bulk carriers & container
carriers
• Offshore — Oil rigs, OSVs, AHTS, FPSOs, etc
• Inland Services — Ferries, Ro-Ros, barges, etc
• Naval — Frigates, destroyers, patrol vessels, aircraft carriers, submarines, etc
Europe China
Japan South Korea India ???
(1950s & ((2002)
(1970s) (1980s) (21st Century)
1960s) onwards) 31
 Offshore Sector Outlook
NON-OECD Asia (including India)  43% of total
Rapidly Expanding Indian Offshore Market
increase in global oil use over next 20 years(1(1))

700
Planned
PlannedE&P
E&PCapex
Capex
600
Quadrillion Btu

500

400 Reliance
RelianceIndustries
IndustriesLtd.
Ltd. D6
D6--
300 $8.8
$8.8bn
bn
History Projections
200
ONGC $21
ONGC $21bn
1980 1995 2006 2015 2030
Source: EIA bn
Ref erence High Economic Grow th Low Economic Grow th

Substantial
Substantialinvestment
investmentininenhancement
enhancementof
ofrecovery
recoveryfrom
from
Significant
SignificantIncrease
IncreaseininE&P
E&Pactivities
activities existing fields
existing fields

Firming
Firminginternational
internationalcrude
crudeoil
oilprices
prices Offshore
Offshoresegment
segmentcapital
capitalexpenditure:
expenditure:US$10
US$10bn
bn

Increased
Increasedinvestments
investmentsininnew
newoffshore
offshoreassets
assetsand
and Requirement
Requirementfor
forInnovative
Innovativesolutions
solutionsand
andnew
newtechnologies
technologies
replacement of existing offshore equipment
replacement of existing offshore equipment

Recovery
Recoveryof
ofoil
oilreserves
reservesand
andproduction
productionfrom
fromultra
ultra Excess
Excessdemand
demandfor
forseismic,
seismic,drilling,
drilling,installation
installationand
andfield
field
deepwater fields more viable
deepwater fields more viable development, support and maintenance vessels
development, support and maintenance vessels 32
 Indian defence Opportunity
Increasing defence Expenditure
Private sector Participation
 India’s defence expenditure growing
over the past couple of years
Indigenization of defence Needs
 Given the geo-political realities of
the region, it is expected to grow
further 2001:
2001:100%
100%private
privateparticipation
participationpermitted
permitted
 Country’s vast coastline presents
the need for a large naval budget
Total 2005:
2005:Recommendations
Recommendationsto toenhance
enhanceprivate
privatesector
sector
Expenditure participation by Kelkar Committee
participation by Kelkar Committee
250 805 855 917 1,146 1,417
200
2008:
2008:15
15year
yearplan
planfor
forIndigenization
Indigenizationof
ofIndian
IndianNavy
(INR Billion)

Navy
150

100 206
162 159 173
140
50 Private
Privatesector
sectorexpected
expectedto
toplay
playaavital
vitalrole
rolein
in
meeting the sophisticated needs
meeting the sophisticated needs
0
2005-06 2006-07 2007-08 2008-09 2009-10*

*Budget estimates.
33
Thank You

34