My greetings for the Year 2018. May the year bring all the cheer and happiness! I take this opportunity to share our performance so far in FY 17-18 and milestones ahead of us. With VoP of Rs 1030 Crore in the last financial year, highest in the history of GSL, the Shipyard is well on course to attain targeted VoP of 1350 Crore. Similarly we are expecting even better record breaking financial results for the current year. We owe this splendid performance to the unwavering commitment of our work force, their inexorable pursuit of excellence, and will to excel.
We have continued to deliver on our stated commitment that ‘execution is the holy grail’. We have delivered more than 12000 gross tonnage in last calendar year, which was the highest in the history of GSL. It included delivery of three OPVs of 2400T each to Coast Guard, one AOPV to Sri Lanka, one FPV to Mauritius, one DCS and two 1000 tonne Fuel Barge to the Indian Navy. Last year also saw culmination of six CG OPV Project, one of the most cherished projects of the GSL, as all deliveries were made ahead of contractual schedule with nil/ minimal D448 liabilities. Compared to usual build period of 67 months, time taken for construction of NOPVs, the build period of six CG OPV was reduced to 36 months with five months between interval deliveries. The increased throughput has been a direct manifestation of increased productivity, timely deliveries and reduced ‘Build Period’, which has benefited both our clients and Shipyard immensely. Our clients have got extended life of ships which otherwise consumed during prolonged and extended construction period itself.
Last year also saw one of the highest exports ever recorded in the history of GSL. With record exports turnover of Rs 399 Crore (40% of VoP), the Shipyard emerged as a lead exporter of defence ships in the Indian sub-continent. Major highlights of exports were delivery of Sri Lankan OPV ‘SLNS Suyurala’ and Mauritius FPV MCGS ‘Valiant’. It s a matter of great pride that GSL built SL OPV, largest ship in the Sri Lankan Navy, is rendering yeomen service to the Sri Lankan Navy. Similarly, both FPVs and eleven FIBs have come for unprecedented appreciation from Mauritius side. Riding on this strong wave of exports, we are expected to record over Rs 550 Crore from exports in the current year.
As we cherish illustrious and glorious 60 years of Shipyard’s existence, we look back at the transformation of the shipyard from a small barge repair facility to a major shipbuilding entity, capable of indigenously designing and building state of the art sophisticated ships, to cater for maritime security requirements of the country. Successful delivery of more than 200 sea faring platforms and over 160 boats are a testimony of Shipyard’s commitment to contribution towards nation building. Armed with world class infrastructure, the Shipyard has taken up highly challenging import substitute projects such as 1135.6 advanced stealth frigates and Hovercrafts. The yard is also gearing up for the construction of MCMVs and post completion of modernization Project in 2019, the Shipyard will have the only facility in the Indian subcontinent, to construct specialized GRP hull for MCMVs.
The recent achievements of the Shipyard have been duly recognized by way of various awards in this year. During RM Excellence Award ceremony on 30 May 17, the Shipyard was adjudged the ‘Best performing Shipyard’ amongst MoD Shipyards for 15-16, Best Design for own initiative Project for 2014-15 and Best performance in exports for 2014-15. SCOPE Award for turnaround for the year 2014-15 was conferred by the Hon’ble President of India on 11 Apr 17, only PSU amongst 244 PSUs to be conferred with this honour.
As a corporate citizen, yard is focusing on increased indigenization / outsourcing, Skill India, Swachh Bharat Abhiyan, CSR and other initiatives of the GoI. Increased emphasis is being given to the development and implementation of new governance policies and training of our employees to prepare them for the challenges of the future.
We look forward to 2018 as a year in which GSL will continue to set new benchmarks, incorporating the latest technologies and expanding its capabilities to meet the needs of the nation’s defence sector. We are confident of increase in VoP by 30% to 40%, along with corresponding increase in our bottom line, on the strength of reduced build periods and higher productivity. It will also be a year when we look to deliver 2nd SL OPV and balance two 1000 Tonne barges to the Indian Navy. Considering our performance in last 3 years, it can be safely said that the shipyard is on path of rapid growth and will continue to contribute significantly towards fulfilling acquisition aspirations of our maritime security forces.
We have created ‘new normal’ in Shipbuilding Industry, with our timely deliveries with nil / limited liabilities. We are committed to create new Benchmarks, for the Industry to benefit, in our transformational journey. We are thankful to our clients and MoD in reposing faith on our capabilities and we committed to build highest quality ships, delivered always on time or ahead, in line with legacy we have created in last four years.
RAdm Shekhar Mital, NM, IN (Retd)
Chairman & Managing Director