Mercator (company)

Mercator Ltd. is the second largest private sector shipping company in India in terms of tonnage.

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.

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 USD 60 mn. The issue is listed on Singapore Stock Exchange.

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.

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.

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.

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.

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 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.

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.

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.

• Mercator Limited
• Mercator Lines (Singapore) Limited
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