part1

Chowgule Group is widely known for its iron-ore mining activities and bulker fleet but it is now playing a key role in the country's rise to prominence on the international shipbuilding scene. 

Early last year, Chowgule secured contracts for six multipurpose cargoships (Multi Purpose Cargos) from a joint venture involving Navigia, the Dutch affiliate of Germany's Rudolf Schoning, and Hamburg­based Apollo Shipping.

Together with (limited partnership) player Bulkhandling GmbH & Co KG that order has since doubled to 12, while Union Transport Group and Shipcom Bereederung GmbH have upped the total to 20 by each ordering four identical vessels.

All this is a huge leap from Chowgule building inland barges for the domestic market. Its sights are now set on constructing coastal vessels for the group's own use and eventually containerships and products tankers. 

Chowgule's international presence has been achieved by becoming an associate member of the Groningen, Holland-based Conoship marketing and design organization.

part2

Also, Conoship helped educate Chowgule in how ships of this size are produced in Holland. New computer numerical control (CNC) cutting equipment was purchased from Australia based on broad specifications outlined by Conoship. The 20 identical Multi Purpose Cargo's of 4,450 dwt have an aggregate price of around $120m based on an average of $6m per unit.

Ashok Chowgule, the group's shipyard division executive director, says the origins of the shipyard business can be traced back to the family's iron-ore mining activities and its building and repair of mechanized barges for hauling the ore by river to ports.

Grab and suction dredgers, deep-sea fishing trawlers, tugs, hopper barges and coastal ships have all been produced over the years - more than 100 so far in total. But Ashok Chowgule says that for a long time it remained a relatively small  production, partly because of India's environmental regulations preventing the establishment of large private-sector shipyards. When circumstances changed in the 1990s, Chowgule started investing and within the space of 18 months built around 23 inland barges totaling roughly 55,000 dwt.

part3

Currently, the Chowgule yards employ around 45 people in administration, accounts, commercial and technical roles, while around 500 to 600 workers are subcontracted in depending on requirements. 

"We have invested in getting them trained for the requirements of a modern yard," insisted Ashok Chowgule. He claims that as regards steelwork, standards are already 99% of those found in
Europe. The quality of machinery installation is less clear, although still "good" with the help of sup-
pliers. 

Much depends on improving  management skills and giving them the "right tools to do the job" adds  Chowgule.

There are no European managers employed at the yards but overseas consultants are used regularly.

part4

Typical yard pay is about EUR 0.50 ($0.60) per hour, as compared with EUR 20 in Holland.

Conoship introduced owners to Goa, where Ashok Chowgule says it did not take long to convince them of its potential. The initial contact with Conoship took a long time but it did not take long to persuade them to work together. . Holland was targeted as a partner because of its excellent track record in building smaller cargoships.

The shipyard chief hopes that within the next few months, when Chowgule is scheduled to deliver the first Multi Purpose Cargos, it can prove it has fast-tracked in achieving European levels of workmanship.

Its 20-strong series of Multi Purpose Cargos is scheduled for completion between January 2007 and December 2009. Ashok Chowgule believes that because of investments in the yards, the last may even be a few months early.

part5

Steel cutting began around August 2005.

Roughly EUR 11m of new investment is being made in the yards, apart from the cost of land, including welding and plate-preparation equipment and concreting areas.

Some 80% has come from the Chowgule family as the group is still privately owned.

The aim is to position the. Yards in the global market as reliable suppliers of cargoships of up to 6,000 dwt, says Ashok Chowgule. They will focus on building containerships and possibly products tankers once the Multi Purpose Cargos are delivered.

"At the moment we aren't actively in those markets because we want to concentrate our energies in making the yards efficiently" he said.

We have introduced many new things and know it will take a lot of effort and a certain amount of time.

part6

Fortunately, some were contracted when steel and equipment prices were lower, although the last contract was signed as recently as April, a repeat by Shipcom for two more units.