Mercator (company)

Mercator Limited
Type	Public
Traded as	BSE: 526235; NSE: MERCATOR
Industry	Shipping, Coal, Dredging, Offshore Oil and Logistics
Founded	1983, Mumbai
Headquarters	Mumbai, Maharashtra , India
Key people	H. K. Mittal, Chairman & Atul J. Agarwal, MD
Revenue	₹683.90 crore (US$86 million)
Website	www.mercator.co.in

Last updated June 26, 2023

Mercator Limited is an Indian company. It was earlier known as Mercator Lines Ltd. The Mercator group of companies has diversified business interests in Coal, Oil & Gas, Commodity Transportation, and Dredging. Mercator Limited (formerly Mercator Lines Ltd.) is the parent company and was the second largest private sector shipping company in India, and it is based in Mumbai. It was amongst the highest wealth creators in the Indian stock exchanges between 2000 -2010.

It suffered greatly after 2008 financial crises which led all commodities crashing along with the greatest and longest downturn in the Shipping Industry with the indexes crashing over 95% from its peak in 2008 to its lows in 2015. It also suffered greatly due it to its receivables stuck in litigation with several Government owned companies namely Dredging Corporation of India and ONGC. As per the companies disclosures the total litigation amount is around USD 300 million, more than its total debt at the time. Long legal battles along with severe downturn and bank's inability to roll over its due debts led it to the company's decline with eventual it being taken to NCLT for liquidation.

Company was truly a pioneer in many ways challenging the way the Shipping business was done in India. It won many awards including Best Company by Business Standard and Economic Times in 2007 and 2008. Its founder and Chairman Mr Harish Kumar Mittal won the prestigious Entrepreneur of the Year Award from EY in 2007.

It was only the second Indian company to list its Singapore subsidiary on the Singapore Stock Exchange in Singapore in 2007. Mercator Lines (Singapore) Pte Ltd went on to win many corporate governance awards, only Indian company to do so.

Group Overview

Mercator Ltd. was the second largest private sector shipping company in India in terms of tonnage till 2018.

Mercator Ltd was incorporated on 24 November 1983 as a private limited company. It was converted into a public limited company on 3 April 1984.

It has done pioneering work by operating vessels in some uncharted rivers like the Tapti and has thus opened new navigational routes. It has diversified itself into various business segments.

Mr. H. K. Mittal the promoter of the company took it over in the year 1988 and the company has become the second largest private sector shipping company in India in terms of tonnage.^{[ citation needed ]}

Since its maiden public issue in 1993, it has grown in terms of financial parameters like turnover, profits, tonnage and market capitalization. Presently the shares of the company are listed on Mumbai Stock Exchange and National Stock Exchange. During April 2005, the Company completed its first international offering of Foreign Currency Convertible Bonds aggregating US$60 mn. The issue is listed on Singapore Stock Exchange.^{[ citation needed ]}

The company also added new business segment namely offshore drilling with acquisition of Jack-Up Rig. The rig received ahead of its schedule; was deployed immediately upon delivery in March 2009; for a period of three years on firm bare boat charter. The group has opted out of the offshore drilling segment w.e.f. March 2011 as strategic decision.

The company also forayed into dredging and presently owns a sizeable fleet.

Mercator Group has also acquired economic interest in coal mines in Mozambique and Indonesia with substantial coal resources; as a measure of backward integration to strengthen its shipping activities and to meet the huge energy demand in India. The commercial operations in Indonesia have already commenced.

Tankers

Mercator commenced its Wet Bulk business in 1998 by acquiring the vessel M. T. Richa (9,750 DWT) and entered into crude oil transportation in 2003. In a very short span of time, it has grown to be amongst the major Indian companies in this segment. Mercator is the second largest tanker owners in the private sector in India in terms of tonnage. The company operates its fleet as a mix of spot contracts (single-voyage) and period contracts (fixed-term). The Company presently has a consolidated DWT of 760,189 tones for this segment.

In addition to its usage for transportation of cargo, tankers can also be used as offshore storage facilities. The company has one such modern Aframax tanker on a long-term period contract.

Mercator also is the first Indian company to have its complete Tanker fleet of double hull.

Dry Bulk Carriers

Mercator's Dry Bulk shipping business is handled through its Singapore listed subsidiary, Mercator Lines (Singapore) Limited (MLS). Commencing operations in 2005, it has established a market presence in the Indian coal transport market, specializing in the transportation of dry bulk commodities, such as coal into India from Australia and Indonesia; and iron ore from India to countries such as China.

Mercator's network strength in the Indian markets helps maximize the capacity usage efficiencies by utilizing its ships on the triangular route of Indonesia – India – China – Indonesia.

Mercator also provides its customers with shipping. The Group primarily services large thermal-based power plants and steel companies, and has established strong relationships with reputed end-user customers such as Vale, Tata Power, Arcelor Mittal Group, and COSCO to name a few.

MLS presently controls an operating fleet of 18 vessels including a VLOC, which is the largest bulk carrier in India and Singapore.

Coal & Logistics

Mercator Ltd has been in business of Coal transportation & Logistics since 1995 & served many Thermal Power Station in India.

Mercator Ltd entered into coal business in 2008 as backward integration. Coal business includes Coal Mining, Coal Trading, Handling & shipping

Mercator Ltd acquired coal mines in Indonesia with substantial coal resources, as a measure of backward integration.

Mercator also provides shipping in India.

Oil & Gas

Mercator first forayed into the Oil & Gas business in 2004, when it chartered a Floating Storage and Offloading (FSO) Unit to BG Group. Since then, the oil & gas division has seen a steady growth with the most recent achievement being the Sagar Samrat Conversion COMPANY Project for ONGC. Floating Storage and Offloading (FSO) Units and a Mobile Offshore Production Unit (MOPU) in Nigeria, the Oil & Gas vertical has proved itself as a strategic component of Mercator's philosophy of diversified growth.^{[ citation needed ]}

Company placed the order for a Jack Up Rig in November 2007 with Keppel FELLS Ltd which was delivered in 2009 & was immediately contracted to one of private sector shipping company in India. The Group has opted out of the Offshore Drilling segment wef March 2011 as strategic decision.

Floating Production Unit (MOPU + FSO)

In 2010, Mercator won a contract for Charter of a Floating Production Unit (FPU), which is a combination of a MOPU and an FSO, from Afren Plc., a UK listed Company, with worldwide operations in oil exploration. To execute this, Mercator provided Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) services successfully at an oil field in Nigeria, with the services customized as per the requirements of the Charterer. This project was executed in 432 days, working around the clock and coordinating the project from various parts of the world. Mercator is currently operating the FPU at the Ebok field in Nigeria.^{[ citation needed ]}

Sagar Samrat

On 17 November 2011, a consortium of Mercator and Gulf Piping Company, Abu Dhabi was awarded an EPC contract by ONGC for conversion of their Mobile Offshore Drilling Unit ("MODU") 'Sagar Samrat' into Mobile Offshore Production Unit ("MOPU"). The detailed engineering design is by GL Noble Denton, UAE, for Marine Part and Samsung Heavy Industries India Pvt. Ltd (SHI-I) for Production Facility. It is purely Indian and the infrastructure of the mill is on the Indian Rupee 1 note.

Dredging

Mercator forayed into dredging in the year 2007. Currently, it holds the following fleet:

1) Six trailing suction hopper dredgers; 2) One grab cum trailing suction hopper dredger; 3) One cutter suction dredger; 4) One bucket ladder dredger.

It is one of the principal clients for major ports like Paradip, New Mangalore, Kandla, as well as the Indian Navy.

Related Research Articles

A merchant ship, merchant vessel, trading vessel, or merchantman is a watercraft that transports cargo or carries passengers for hire. This is in contrast to pleasure craft, which are used for personal recreation, and naval ships, which are used for military purposes.

Malaysia Marine and Heavy Engineering Holdings Berhad is a Malaysian owned shipbuilding and heavy engineering industries company. It was formerly known as Malaysia Shipyard and Engineering Sdn Bhd. MHB has been long involved in oil and gas engineering and construction works.

The Shipping Corporation of India (SCI) is a public sector undertaking that operates and manages vessels servicing both national and international lines. It is under the ownership of Government of India and administrative control of the Ministry of Ports, Shipping and Waterways, with its headquarters in Mumbai.

Cochin Shipyard Ltd (CSL) is one of the largest shipbuilding and maintenance facility in India. It is part of a line of maritime-related facilities in the port-city of Kochi, in the state of Kerala, India. Of the services provided by the shipyard are building platform supply vessels and double-hulled oil tankers. It built the first indigenous aircraft carriers for the Indian Navy, the INS Vikrant. The company has Miniratna status.

Mazagon Dock Shipbuilders Limited (MDL), formerly called Mazagon Dock Limited, is a shipyard situated in Mazagaon, Mumbai. It manufactures warships and submarines for the Indian Navy and offshore platforms and associated support vessels for offshore oil drilling. It also builds tankers, cargo bulk carriers, passenger ships and ferries.

Garden Reach Shipbuilders & Engineers Ltd, abbreviated as GRSE, is one of India's leading shipyards, located in Kolkata. It builds and repairs commercial and naval vessels. GRSE also builds export ships.

BW Group is a maritime company involved in shipping, floating gas infrastructure and deep-water oil & gas production. The company has over 350 vessels managed by an international team of over 7000 staff worldwide. The group was founded by Sir Yue-Kong Pao in Hong Kong in 1955 as World-Wide Shipping. In 2003, the company acquired Bergesen d.y. ASA, Norway's largest shipping company, which was founded in 1935 by Sigval Bergesen the Younger. In 2005, the business was re-branded as BW. With its LNG and LPG fleets combined, BW Group owns and operates the world's largest gas shipping fleet of more than 115 gas vessels, including four FSRUs. Hafnia, a member of the BW Group, operates the world's largest fleet of oil product tankers, and BW Offshore comprises the second largest number of floating oil and gas production units (FPSOs).  BW's controlled fleet of over 350 ships also includes crude oil supertankers and dry bulk carriers.

BW Offshore Limited is a global owner and operator of floating production storage and offloading (FPSO) vessels. The company is listed on Oslo Stock Exchange. The company has its headquarters in Singapore and Oslo, Norway but operates internationally. The largest owner is BW Group Limited with 49.3% of the shares.

Essar Shipping Ltd., now Essar Shipping Ports & Logistics Limited, is an Indian shipping corporation for the global energy business. Founded in 1945, the company was incorporated in 2010. The company was listed in Bombay Stock Exchange. The company headquarters is located in Mumbai. The company is a part of Essar Group.

MISC Berhad was incorporated in 1968 as Malaysia International Shipping Corporation Berhad and is the leading international shipping line of Malaysia. In September 2005, Malaysia International Shipping Corporation Berhad adopted its present corporate identity and changed its name to MISC Berhad. Its main shareholder is Petroliam Nasional Berhad (Petronas), the national oil conglomerate of Malaysia. The principal business of the corporation consist of ship owning, ship operating, other shipping related activities, owning and operating of offshore floating facilities as well as marine repair, marine conversion and engineering and construction works. With a fleet of more than 120 vessels and a combined tonnage of more than 13,000,000 DWT.

The Oil and Natural Gas Corporation Limited (ONGC) is an Indian central public sector undertaking under the ownership of Ministry of Petroleum and Natural Gas, Government of India. It is headquartered in New Delhi. ONGC was founded on 14 August 1956 by the Government of India. It is the largest government-owned-oil and gas explorer and producer in the country and produces around 70 percent of India's domestic production of crude oil and around 84 percent of natural gas. In November 2010, the Government of India conferred the Maharatna status to ONGC.

<span class="mw-page-title-main">GAIL</span> Central Public Sector Undertaking

GAIL (India) Limited is a central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. It has the following business segments: natural gas, liquid hydrocarbon, liquefied petroleum gas transmission, petrochemical, city gas distribution, renewable Energy including Solar & Wind, exploration and production, Petrochemicals, GAILTEL and electricity generation. GAIL was given the MahaRatna status on 1 Feb 2013 by the Government of India. Only 10 other Public Sector Undertakings (PSUs) enjoy this coveted status amongst all Central PSUs.

Colombo Dockyard PLC (CDPLC) is a ship building company in Sri Lanka and is based in Colombo. It has built both military and civilian vessels for both local and overseas clients.

<span class="mw-page-title-main">COSCO Shipping Energy</span> Chinese shipping company

COSCO Shipping Energy Transportation Co., Ltd., stylized as COSCO SHIPPING Energy, is a Chinese oil tanker shipping company with its headquarters in Hongkou District, Shanghai. The company transports crude oil, LNG, and LPG. It is a subsidiary of COSCO Shipping. It is the world's largest oil tanker shipping company in terms of fleet capacity.

BP Shipping is the maritime arm of British headquartered global oil company, BP. The unit covers the marine transport, logistics and insurance requirements of all BP's global activities.

Dredging, Environmental and Marine Engineering NV (DEME) is an international group of specialised companies in the field of capital and maintenance dredging, land reclamation, port infrastructure development, offshore related services for the oil & gas industry, offshore windfarm installation, environmental remediation a.o. The group is based in Zwijndrecht, Belgium, and has current operations on the five continents.

GL Noble Denton is one of the oil and gas businesses of DNV GL, headquartered in Hamburg, Germany and London, UK. The company is an independent technical advisor to industry operators across the world.

The Ben Line or Ben Line Steamers, Limited was a Scottish shipping company based in Leith, Scotland founded in 1825 which was primarily involved in the Far East to Europe trade. A private company, it was largely owned by members of the Thomson family from Leith and the Mitchell family from Alloa.

Dredging Corporation of India Limited, or DCI, is an Indian dredging company which does dredging for Indian seaports exclusively. It occasionally dredges at foreign seaports in countries such as Sri Lanka, Taiwan and Dubai. It is mainly involved in maintenance dredging. Almost all the maintenance dredging in Indian seaports is carried out by DCI due to government regulations. DCI is also involved in capital dredging, beach nourishment, and land reclamation. The main seaports in which DCI does business are Visakhapatnam Port, Haldia, Kandla, Cochin Port and Ennore Port.

Teekay specialise in shipping crude oil.

References

↑ "Management / BOD". Mllindia.com. Archived from the original on 27 October 2010. Retrieved 24 January 2011.
↑ "BSE Plus". Bseindia.com. Retrieved 2 February 2011.

External links

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.

[1] "Management / BOD". Mllindia.com. Archived from the original on 27 October 2010. Retrieved 24 January 2011.

[2] "BSE Plus". Bseindia.com. Retrieved 2 February 2011.

[1]

[2]