{"id":191,"date":"2018-12-17T10:34:16","date_gmt":"2018-12-17T10:34:16","guid":{"rendered":"http:\/\/www.malayaleebazaar.com\/ecostar\/?p=191"},"modified":"2018-12-17T10:34:16","modified_gmt":"2018-12-17T10:34:16","slug":"goa-shipyard-ltd","status":"publish","type":"post","link":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/?p=191","title":{"rendered":"Goa Shipyard Ltd"},"content":{"rendered":"\n

After the incredible turnaround, now a world-class shipyard<\/strong>
\u00a0<\/strong>
What could be called a turnaround strategy that Goa Shipyard embarked on four years ago and the steps that ensured the sustainability of all new achievements, now have become a preparation for facing all future challenges. Once a barge builder, is now a world-class shipyard with many track records in history and laurels on its cap, GSL is set to build missile frigates and Mine Counter Measure Vessels, while it already has the capability to design and build tailor-made defence ships not only for India but also for foreign blue water Navies, besides various types of commercial vessels. <\/strong><\/p><\/blockquote>\n\n\n\n

Works on war footing basis at Goa Shipyard in the last four years have metamorphosed\nthe shipyard to an integrated ship building conglomerate, capable of designing and\nconstructing technologically advanced platforms. Goa Shipyard can now be called\nan integrated shipyard, thanks to the new vision spurred by its Chairman and\nManaging Director and management and new opportunities coming to its ways. Systematic\nenhancement of its Research and Development (R&D) capability for designing,\naugmentation and modernisation of its existing capacities and fast movement in\nevery project have enabled GSL break its own Bench Marks year after year and\ncreate new standards for industry to emulate, which has become new normal now.\nIt has upgraded its infrastructure in a big way at a cost of over Rs 1000Cr,\nduring last five years, which has made it ready to embark on building 1135.6\nfrigates, while being largest defence ship exporter in Asia. This year GSL has\nrecorded foreign exchange earnings equivalent of around Rs 607 crore, which is more\nthanits total turnover four years ago. With the value of rapid indigenization\nthat GSL has achieved in the recent years is added, the total value of foreign\ncurrency saving would be significantlymore.  GSL has already earned admirations from\nSrilankan Navy for SLNS Sayurala and Sindhurala and Mauritius Coast Guard for\ndelivery of Fast Patrol Vessel (FPV) and fast Interceptor Boats (FIBs) much\nahead of schedule. This is opening new opportunities\nfor its foreign order inflow. Not resting on the laurels, the Shipyard is on\ncontinuous lookout for new export orders. It is presently busy participating in\nthe Brazil shipbuilding program for four advanced Corvettes and quite hopeful\nof bagging the Project. The Shipyard is also hopeful of concluding new export\norders soon with an African country and an IOR country.<\/p>\n\n\n\n

GSL earns its revenue through three business verticals. Under the\nshipbuilding vertical, it offers designing and building variety of vessels and\nsimulating training facility. This vertical brings in roughly 80 per cent of\nthe total revenue.  General Engineering\nsegment is the other major vertical whichcontributes about 13per cent to the\ncombined sales. The third vertical namely Ship Repair chips in about seven per\ncent of the total revenues. As shipyard in last four years has succeeded in\nreducing average delivery time\/ \u2018Build Period\u2019 of a vessel from over six to\nthree years and this business constitutes a lion\u2019s share, there could be a\nsignificant growth in annual revenues from ship building division, going\nforward.  This offers a huge opportunity\nfor the shipyard.<\/p>\n\n\n\n

GSL has strong footprint in both defence and commercial vessel segments.\nWith significant expertise in making sophisticated ships not only for the Blue\nwater Navies and Coast Guard but also for commercial segment, including\noffshore, fishing, dredging, oceanographic and coastal research vessels, this\nis providing large captive domain base to shipyard in indigenizing sophisticated\nMine Counter measure equipment, ancillary machines, stern gears, stabilizers, etc\n\u2013 thereby working in tandem with large national goal of self-reliance in areas\nwhere India has sufficient talents and infrastructure is in place. GSL also\nserves companies abroad, which brings it considerable foreign revenues. From\nlast two- three years roughly 40 per cent of its fast growing revenuesare\ncoming  in foreign exchange. This\nproportion would only go up in future, as the world has begun to recognize its\ncapability.  <\/p>\n\n\n\n

Shipbuilding being the core of the business, the management has spent lot\nof time on boosting the efficiency of this vertical, through major corrective measures\nlike rationalization of operations through close monitoring of improved\nproduction and planning, streamlining supply-chain management and prudent HR\nmanagement. Works on operations have not been allowed to be affected,even while\nmassive modernization of the yard is happening concurrently at same places with\nold workshops being replaced with new modernized workshops by demolishing the\nold ones. On an average, yard has been spending over Rs100Cr  a year as capital expenditure on\nmodernization. This is also being leveraged as big efficiency multiplier, he\npoints out.   <\/p>\n\n\n\n

As a result, of above corrective measures adopted over last 3-4 years, says\nAdmiral Mital, \u201cwe could drastically cut down the build period from six to\nthree years in vessel\u2019s  delivery. That\nhas given back to us huge financial savings, besides increasing the gap between\nour performance and our competitors.\u201d This drastic cut in time has led to\nemployee value addition moving up by four times in four years. In the year\n2013-14, GSL\u2019s labour cost was nearly 24 per cent of VoP, which has fallen to\nless than 15 per cent in the year 2017-18. This reduction has been consistent\nin the last four years. With bulk orders coming in, increased automation and\nvigorous approach towards minimizing delivery period, GSL is expected to\nfurther cut the cost of labour. This has resulted in rise in revenues by three\ntimes, withoutany augmentation in labour force, over last four years. In line\nwith the capacity expansion and execution of high value orders, GSL hasn\u2019t\nexpanded the base of workforce correspondingly. With present productivity, and planned\nupskilling, largely same size of manpower will be able to manage orders of\ngreater value, showing that there is a hidden potential for further enhancement\nin labour output and cost savings. <\/p>\n\n\n\n

In the last four years,operational metrics, have improved rapidly, it\nhas rediscoveredit\u2019s potential that would tell the world India\u2019s new capability.\nWith highest operating margins, in the industry, rising throughput per\nemployee, significant cut in turnaround time and delivery of orders, GSL has established  itselfas an efficient corporate establishment,\nthat can thrive on its inherent strength and orders will flow  in time, with a trust on its new found capabilities.\nIt has delivered 25 ships in last four years, all ahead of schedule and in so\nshort a period that hardly any shipyard in the world could imagine. Its gross\nrevenue have soared 2.63 times, while operating profit has jumped nearly seven fold\nin three years. Obviously, the significant cut in turnaround time would lead to\ncost saving. That has been made possible only because of its highly admirable\nplanning, thanks to the efficient and admirable leadership of its CMD and top\nmanagement that could keep each employee on their toes in addressing the\nchallenges squarely.<\/p>\n\n\n\n

If the top management has clear focus, professional acumen and fire in\nthe belly,it can turn the sick one around, perhaps in no time, GSL has proved\nit. In the process, it has set a record for itself to be the best in the world\nin terms of operational efficiency and skills. It has achieved what an ideal\nshipyard could. Yet it sees huge leg room for rapid future growth. At the same\ntime, it foresees competition from private players.With the new correctives put\nin place, yard has adopted enduring systems which will ensure it to meet the\nchallenges from completion squarely, which yard is no longer perturbed about.\nFurther to cut the cost and as per national priorities, GSL is laying lot of\nemphasis on increased indigenization. Indigenizationlevel whichfour years ago,\nwas at mere 50 per cent, has risen to over 70 per cent. Recently, it could\nsuccessfully indigenize hydraulic stabilizers for 05 CG OPV project. It has completed\nFATS of integrated system last month. It has also signed agreement with NAIAD\nof UK for supply of the indigenized parts of stabilizers for it\u2019s global\nsupplies. With new ship building projects coming up and the new global supply\narrangements, there is a need of scaling up production of indigenized products,\nhe points out.<\/p>\n\n\n\n

\u201cWe need to be more and more competitive,\u201d he avers. By the time the\nprivate players set their house ready for smart business,GSL needs to establish\nitself as an unbeatable player. Things over the period of time have improved\nsignificantly. Govt provides complete freedom to work and has been continuously\nencouraging all PSUs to expand business, spend more on modernisation\/ R&D\/\ntraining etc..There is nothing that stops us, from adopting,what the management\nfinds it good,for the good of the company. A 100 per cent government ownership\nmay have meant many red-tapism in the past, but not now. He says,GSL has never faced\nit. Being a professional Board driven company,key decisions are taken at the Board\nlevel itself, he points out. Once a decision is taken the management doesn\u2019t\nlet it drag and delay its implementation. \u201cThe policies, timing, eco system and\nmorale of employees are all in favour of our business. Good works and\nintentions are always appreciated by MoD\/ Government,\u201d he avers. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The total migration of internal management onto e-platform to bring in place an integrated approach helps the top management track all operations,Business Progress report each project on real time basis.\u201c Results of strong systems and processes in place, judicious cost control, discreet deployment of manpower and focus on operational synergy, is all apparent from the operational figures of last five years. Admiral Mital took up the assignment of the company on 01 Feb14, the year it had posted a loss of(-) Rs 62 crore on a gross revenue of Rs 553 crore. In four years Company\u2019s performance tells a total different story. This year, GSL has registered record-breaking top and bottom line, he asserts.<\/p>\n","protected":false},"excerpt":{"rendered":"

Works on war footing basis at Goa Shipyard in the last four years have metamorphosed the shipyard to an integrated ship building conglomerate, capable of designing and constructing technologically advanced platforms. <\/p>\n","protected":false},"author":2,"featured_media":192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-191","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cover-feature"],"_links":{"self":[{"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=\/wp\/v2\/posts\/191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=191"}],"version-history":[{"count":0,"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=\/wp\/v2\/posts\/191\/revisions"}],"wp:attachment":[{"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dazzling-chebyshev.103-73-189-254.plesk.page\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}