- Ocean Sparkle also operates in Sri Lanka, Saudi Arabia, Oman, Yemen and Qatar.
- It clocked a revenue of Rs 622 crore in FY21 and employs around 1,800 personnel in the country.
- Around 92% of its revenue was contributed by towage and pilotage, while the remaining 8% was from dredging.
Gautam Adani, the country’s largest port tycoon, is planning to buy Ocean Sparkle, the country’s largest maritime services company, for Rs 1,530 crore as reported by The Times of India.
Market leader
Through Adani Harbour Services, a wholly-owned subsidiary of his publicly traded Adani Ports, he would buy Ocean Sparkle from a collection of marine technocrats (who control 35%) and financial investors (who own 65%).
Ocean Sparkle was founded in July 1995 and provides towage, pilotage, and dredging services to all Indian ports and LNG installations. It has a fleet of 94 ships. Adani Harbour will become the market leader in India’s marine services market as a result of the acquisition.
In addition to Sri Lanka, Ocean Sparkle has operations in Saudi Arabia, Oman, Yemen, and Qatar. It made Rs 622 crore in sales in FY21 and employs roughly 1,800 people in the country.
Company revenue
Towage and pilotage supplied 92% of company revenue, with dredging accounting for the remaining 8%. In FY22, it is predicted to make a profit of Rs 135 crore. P Jairaj Kumar, the company’s chairman and CEO, will remain in his position following the change in ownership structure.
Ocean Sparkle’s business strategy is solid, as it has long-term take-or-pay contracts with consumers that last anywhere from 5 to 10 years. Taking or paying contracts accounts for about 80% of revenue and 85% of operating profit. Adani Harbour Services and Ocean Sparkle, the company’s marine services division, are slated to generate Rs 5,000 crore in revenue by FY27, according to a filing.
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Source: The Times of India
