Company asked to lay up all the vessels at safe locations
Varun Shipping Company said it was poised to start afresh following reorganisation of the group’s businesses.
On Wednesday, the Directorate-General of Shipping invalidated the Document of Compliance (DoC) of Varun Shipping by terming its six India-registered vessels ‘unsafe and un-seaworthy’. While cancelling licence, the company was directed to lay up all the vessels immediately at safe locations with operational staff on board.
But Varun Shipping’s top management said the DoC was surrendered as the company would no longer be into ship management business.
“The DoC was coming up for renewal but we surrendered it. From April 1, the new company Varun Global will be into ship management, and we have already applied for an interim DoC,” Yudhishthir Khatau Chairman and Managing Director, Varun Shipping, told The Hindu.
He said in the last two years Varun Shipping had been into the process of reorganising its business for optimal utilisation of vessels and reduction of interest rates. Prior to this reorganisation, the company’s three business units were LPG, Aframax tankers and Anchor Handling & Towing Supply Vessels (offshore).
Post-reorganisation, three business entities came into existence and these included Varun Cyprus Ltd. (for Anchor Handling & Towing Supply Vessels), Varun Asia Pte. Ltd. Singapore (for Aframax tankers), and Varun Gas (for LPG vessels).
By a composite scheme of amalgamation and arrangement, Varun LPG group was rearranged into separate ship management and shipping business entities.
“Varun Global will be the ship management entity of the group based in Mumbai focusing purely on ship management services for all the three sectors while Varun Gas will be the owner of the ships,” Mr. Khatau said.
“We have arranged resources for the dry-docking and repair of LPG and Aframax tankers which are scheduled to be completed in the next quarter. This will facilitate 100 per cent utilisation of the tanker and LPG fleet in a viable manner,” Mr. Khatau added.