Goa-based Dempo Group has acquired 74 per cent stake in Modest Infrastructure Ltd. (MIL), a shipyard in Bhavnagar, Gujarat, through the group’s ship-building arm Dempo Shipbuilding and Engineering Pvt. Ltd. (DSEPL).
The group has diversified business interests in areas of mining, ship-building, manufacture of calcinated carbon and pig iron, media, real estate and sports in Goa and in neighbouring districts of Maharashtra.
“MIL, the flagship company of Modest Group, is a recent entrant in the private shipyard space. It had shown good growth in a short span of about six years, and had developed technical expertise to build sophisticated vessels,” said a spokesman of Dempo Group here .
Apart from the existing shipyard at Ramsar (Bhavnagar), MIL is in the process of developing a new shipyard at Ratanpar (about 20 km from Bhavnagar) with the capability of building and repairing ships up to 50000 dwt.
Dempo Shipbuilding has been engaged in ship-building and ship repairs for last about 40 years, and currently builds and repairs inland and seagoing vessels of size up to 3500 dwt. The acquisition of MIL was in line with the strategic vision of Dempo Group’s Chairman Shrinivas Dempo to expand this niche business activity of the group beyond the shores of Goa to cater to both international and domestic markets with bigger and technologically advanced vessels, an official of Dempo Group said.
Commenting on the closure of the deal, Mr. Dempo said that excellent infrastructure created by MIL coupled with Dempo Group’s experience in ship-building and brand image could add considerable value to MIL to take the company on an accelerated growth trajectory and generate expected sales of about Rs.1,500 crore in next 5 to 7 years.
In its sports sector, the Dempo Group is in talks with actor Shah Rukh Khan who has shown keen interest in acquiring a substantial shareholding in one of country’s oldest and successful football clubs, Dempo FC.
“Negotiations are at an advanced stage and the deal should close in the near future,” Mr. Dempo confirmed to The Hindu here on Wednesday.