Seaworthy

Shipping tycoon Dilip Khatau continues to be on a buying spree. Initiated last year, enthused by the buoyancy in freight rates, this time he...

Shipping tycoon Dilip Khatau continues to be on a buying spree. Initiated last year, enthused by the buoyancy in freight rates, this time he has bought a LPG vessel for 40 million through his subsidiary in Singapore. Post this acquisition Khatau will have the second largest LPG fleet in the world in the midsize fully refrigerated LPG carrier segment. Already in control of 77 per cent of the total LPG tonnage operating in India, Khatau8217;s decision to buy this vessel could not have been timed better. Because of a shortage of LPG vessels in the world market, an upsurge in freight rates is likely. The tycoon also plans to add more tankers although his fleet of LPG carriers has risen to 11 with this latest buy. He is against buying VLGC8217;s Very large Gas Containers and prefers to limit his acquisitions to the mid-sized segment. Khatau8217;s preference seems to be dictated by the fact that mid-sized containers are less likely to be affected by instability in freight rates. Seaman legs or just shrewd market reading?

New ties

Suresh Krishna8217;s Sundaram Fasteners is again in the acquisition mould. Already with a significant presence in the European market, the tycoon is buying German auto parts company, Peiner Umformtechnik for about Rs 75 crore. Observers say Peiner8217;s wide range of fastener products catering to the automobile, industrial and construction sector will bolster Krishna8217;s presence in Europe. However, Peiner is not going to be Krishna8217;s first German link. He has already tied up with Bleistahl to float a joint venture called Sundaram Bleistahl wherein he holds a 76 per cent stake. The joint venture plant at Hosur is expected to go on stream by this month-end. Given that Krishna is big on exports, foreign acquisitions will play a role in his future strategy. Sundaram is a big hit in the markets abroad for his pricing and boasts a prestigious client list that includes General Motors and Delphi. In fact, Krishna8217;s was the first Indian engineering company to venture into China. But despite his success on the foreign shores, Krishna knows the Indian auto component market is growing fast and becoming more competitive by the day at the same time, so he8217;s not getting obsessed by those markets.

dilipcheriangmail.com