Apeejay Shipping acquires vessel, expands fleet strength

Apeejay Shipping (ASL) has taken a significant stride in maritime expansion by procuring a Japanese-built vessel boasting a deadweight capacity of 76,812 MT. With this strategic addition, ASL, based in Kolkata, solidifies its fleet, which now stands at 10 vessels. The collective deadweight tonnage (dwt) of 671,332 MT underscores the company's growing influence in the maritime domain.Although precise details regarding the cost and financial structure of this acquisition remain undisclosed, ASL's move reflects a broader commitment to expansion and growth, as affirmed by Karan Paul, Chairman of the Apeejay Surendra Group.As the third-largest ship owner in India, ASL is steadfast in its quest to achieve a future capacity milestone of one million tonnes. This development coincides with ASL's 75th anniversary, accentuating the company's enduring presence and commitment in the maritime industry.In 2022, the Union government introduced various measures, including subsidies, to augment the tonnage of Indian shipping firms, providing a favourable backdrop for ASL's strategic expansion.A July 2022 ICRA credit report highlighted ASL's history, citing previous acquisitions of three second-hand ships in FY2018. The report underscores ASL's focal point in the dry-bulk segment, with coal transportation constituting a substantial portion of its operations. Despite its growth trajectory, the report also underscored a relatively higher client concentration risk faced by the company.