Ruia: Building blocks

Calcutta, May 3: Jessop is planning to diversify into ship building and repairing.

The company, which is out of BIFR now, is in talks with the state government to acquire land on the Hoogly waterfront.

It is eyeing land between Haldia and Sagar, which would have better draft for easy movement of larger vessels.

Chairman Pawan Ruia said the company would finalise its plan shortly.

If Jessop’s venture takes off, this will be the second large-scale shipbuilding unit in Bengal after Garden Reach Ship Builders & Engineers (GRSE).

The investment in the project could be in the range of Rs 300-500 crore and would come in phases.

Ruia said the company would start with ship repairing and then venture into ship building.

The company is considering a tieup with a German company for funds as well as technology. Jessop might float a special purpose vehicle (SPV) for this business.

The German company could pick up a stake either in Jessop or in the SPV, Ruia told The Telegraph.

A couple of years back, Jessop had signed an MoU with a Ukrainian company for shipbuilding, but nothing came of it.

Ruia now holds a 94.5 per cent stake in Jessop, while the Centre has another 4 per cent.

According to the agreement signed with the Centre during divestment, the government will sell its stake to Ruia in August.

Jessop is listed on the Calcutta Stock Exchange and has some public shareholding, but the share is thinly traded.

The promoter plans to list the company on the Bombay and National stock exchanges.