Dredging Corp. Plans Global Foray As Competition Grows in India
(Bloomberg) -- Dredging Corporation of India, the nation’s biggest dredging contractor, plans to seek business abroad as rapid privatization of the ports sector at home makes it harder for state firms.
The company will aim for 2%-4% of global market share, Chief Executive Officer G.Y.V. Victor said in an interview to Bloomberg TV Tuesday. He added that it will first venture into the Indian sub-continent and Middle East.
Private port operators like Adani Ports and Special Economic Zones Ltd., led by billionaire Gautam Adani, prefer to have their own dredgers to maintain navigation channels. Competition will probably increase as the market consolidates in line with the government’s plans to privatize state-owned ports.
“I do consider private ports as a closed market in India,” Victor said. “The competition among the ports is rising as new private ports come up, which are giving tough competition to government ports.”
India’s government plans to spend about $82 billion on 574 maritime projects between 2015-2035. Of the roughly 600 billion rupees that will probably be spent on ports over the next four years, Victor expects some 40 billion rupees to be spent on dredging.
This will support contract demand for the next 12-36 months, he said. The company’s shares have risen 195% over the past year, compared with 92% for the benchmark index.
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