In­ter­view with Shekhar Mi­tal, CMD, Goa Ship­yard Ltd.

Vayu Aerospace and Defence - - Aviation & Defence Inindia -

: GSL has recorded ex­cep­tional fi­nan­cial re­sults for the last fi­nan­cial year. Can you elab­o­rate on that?

Backed by timely de­liv­ery of qual­ity prod­ucts, GSL has been recorded phe­nom­e­nal growth year-on-year since last four years. Four years ago, com­pany was fac­ing a re­ally hard time but now that phase is over and GSL has recorded PBT of Rs 305 crore (unau­dited) for FY 2017-18, a jump of five times. Sim­i­larly for VoP, we have recorded ever high­est VoP of GSL at Rs 1370 crore (unau­dited) for FY 2017-18, which is a three times in­crease in the last four years. This be­comes par­tic­u­larly more im­pres­sive when growth of 30% achieved in the last 4 years is com­pared with other ship­yards op­er­at­ing un­der sim­i­lar ecosys­tems. These ex­cel­lent fi­nan­cial re­sults are a di­rect man­i­fes­ta­tion of new bench­marks es­tab­lished on re­duced ‘build pe­ri­ods’, thereby re­duc­ing over­heads sig­nif­i­cantly.

: What are the key el­e­ments re­spon­si­ble for the ex­po­nen­tial growth of GSL in the last few years?

The ex­cel­lent per­for­mance in ex­ports is driven by de­pend­able and qual­ity prod­ucts with in­ter­na­tional ac­claim. Be­cause of our high qual­ity prod­ucts, we have been able to make sig­nif­i­cant in­roads into global mar­ket with ex­port of di­verse ves­sels to In­dian Ocean Re­gion (IOR) coun­tries. We have de­liv­ered 2 OPVs to Sri Lanka, 11 FIBs and 2 FPVs to Mau­ri­tius, and a Dam­age Con­trol Sim­u­la­tor to Myan­mar. The se­cond and last ves­sel of the Sri Lankan OPV pro­ject was de­liv­ered on 22 March 2018, 25 days ahead of sched­ule. These OPVs are the big­gest war­ships to be ex­ported from In­dia and largest in the Sri Lankan Fleet. Based on ex­port per­for­mance, the Ship­yard was given RM’s award for ‘Best per­form­ing in ex­port amongst all DPSUs’.

: How has GSL man­aged to de­liver all projects ahead of con­trac­tual de­liv­ery sched­ule?

If you take a scan of In­dia’s ship­build­ing in­dus­try, ex­cept for GSL you will hardly find any ship­build­ing pro­ject which is not strug­gling with time and cost over­runs. In such a sce­nario, GSL has stood out to de­liver 24 ships/projects in the last four years, all ahead of con­trac­tual de­liv­ery sched­ule. These plat­forms amount to a 32000 gross ton­nage, high­est amongst In­dian ship­yards. An­other ma­jor high­light of our achieve­ment has been the re­duc­tion in ‘Build Pe­riod’of OPVs from 67 months to OPVs de­liv­ered prior 2014 to 36 months for the re­cently com­pleted six Coast Guard OPV pro­ject. This has sub­stan­tially helped in con­trol­ling the con­struc­tion sched­ule, be­sides keep­ing the cost un­der con­trol.

These out­stand­ing out­comes are the re­sult of hard work, toil and strate­gic align­ment across var­i­ous de­part­ments of the com­pany. The slew of mea­sures un­der­taken for this turn­around in­clude strate­gic re­align­ment of pri­or­i­ties, strict cost con­trol mea­sures, strin­gent mon­i­tor­ing mech­a­nisms, seam­less co­or­di­na­tion amongst var­i­ous stake hold­ers, ac­count­abil­ity of per­son­nel, on the spot de­ci­sions, fast tracked ap­provals and ef­fec­tive sup­ply chain man­age­ment. This, of course comes only with sound un­der­stand­ing of tech­ni­cal and fi­nan­cial is­sues re­quired in run­ning ship­yard ef­fi­ciently.

: GSL has also been spear­head­ing the ‘Make In In­dia’ mis­sion with lot of ini­tia­tives. Can you shed some light on the same?

One of the ma­jor ‘ Make in In­dia’ ini­tia­tives of GSL is ma­jor im­port sub­sti­tute pro­ject for man­u­fac­tur­ing of 12 MCMVs for which the con­struc­tion should com­mence by 2019. The in­fra­struc­ture for the MCMV pro­ject is in fi­nal stages and post com­ple­tion, GSL would have the only fa­cil­ity in South Asia to con­struct high end MCMVs with ad­vanced FRP hull. An­other ma­jor im­port sub­sti­tute pro­ject is con­struc­tion of two Ad­vanced Mis­sile Frigates 1135.6 un­der col­lab­o­ra­tion with Rus­sia. GSL has also col­lab­o­rated with Grif­fon Hover works Lim­ited (GHL), UK, to­wards in­flict­ing in­dige­nous pro­duc­tion of hov­er­craft in In­dia. GSL has al­ready devel­oped ex­per­tise and erected req­ui­site in­fra­struc­ture for the in­dige­nous con­struc­tion of hov­er­craft at GSL and presently pur­su­ing vig­or­ously with po­ten­tial cus­tomers.

Ship de­sign is one of the thrust ar­eas of GSL, where 100% self-reliance has been achieved, which oth­er­wise would re­quire con­sid­er­able FE ex­pen­di­ture to­wards bought out de­signs from for­eign ship­yards/ de­sign­ers. We de­sign and build one of the best pa­trol ves­sels in the world in terms of qual­ity, fuel ef­fi­ciency, er­gonomic de­sign and op­ti­mum cost. We also have de­signs of few fu­ture ves­sels such as ASW Shal­low Wa­ter Crafts, Corvettes, Mini frigates, Train­ing Ships, In­ter­cep­tor crafts, etc. in our in­ven­tory. We are first In­dian ship­yard to have an in-house R&D unit recog­nised by the Depart­ment of Sci­en­tific and In­dus­trial Re­search (DSIR), Gov­ern­ment of In­dia in 2014.

An­other ma­jor ini­tia­tive was adop­tion of ‘Pur­chase Pref­er­ence Pol­icy’ in favour of in­dige­nous equip­ment man­u­fac­tur­ers in 2014. I am happy to state that the Cen­tral Gov­ern­ment has re­cently pro­mul­gated a sim­i­lar pur­chase pref­er­ence pol­icy. Fur­ther, we have iden­ti­fied var­i­ous equip­ment and sys­tems, which were im­ported till date, for re­place­ment with lo­cally pro­duced prod­ucts. Var­i­ous prod­ucts such as gear­box, heli grid, steer­ing and sta­biliser, wa­ter proof doors, steel plates etc. are be­ing sourced lo­cally for new projects. In­creased in­dige­nous con­tent on­board ships con­structed at GSL have been and will be the fo­cus ar­eas of GSL in the times to come. Hav­ing touched 70% in­dige­nous con­tent on GSL OPVs, I am hope­ful that day is not far when we will have 100% in­dige­nous con­tent.

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