Following the Indian government’s initiative of ‘Atmanirbhar (self-reliant) Bharat’, Kolkata-based engineering firm Braithwaite & Co. Ltd (BCL) has earmarked US$6.5 million as capital expenditure to expand its container manufacturing unit. Braithwaite now has four divisions – manufacturing, constructive, services and maintenance.
The public sector undertaking under the Railways Ministry has received orders for 350 containers from the multinational logistics firm DP World and 1,000 containers from Container Corporation of India Ltd (Concor). The current order book is US$26.30 million.
Managing Director at BCL, Yatish Kumar said that the investment will be done in phases. “The container manufacturing segment has potential for growth. We will provide containers at a competitive price to support the country’s export,” he noted.
BCL has created a capacity of making 200 containers each month at Angus Works – one of the two facilities of BCL. BCL MD said that very soon Angus would manufacture 500 containers per month. State-run Steel Authority of India Limited (SAIL) has already started making and supplying specialty steel to BCL.
This comes at a time when the steel market is highly volatile, especially after Russia’s war on Ukraine. The steel prices have soared to their highest levels in the domestic market since November 2021. The raw material prices are rising even further. India is one of the biggest importers of coking coal in the world and this will have a big impact on India’s steel industry.
Previously BCL bagged an US$18.9 million deal with Ukraine for supplies of 54,000 railway wagons. This was BCL’s biggest export order while in its course of turnaround. But given the Russia-Ukraine situation, BCL has now turned its focus on improving the country’s logistics performance index (LPI). It is more inclined towards helping the traders cut the cost of goods carriers and reduce reliance on imports from China.
While India can become the next-best option globally for container manufacturing, BCL’s initiative is also in line with India’s railway plan envisaging increased freight co-efficiency. It can help in reducing the country’s logistics cost to the level of the present global average of 6-9% from 13-8%.
Not just boxes but India is now gearing up to build 47 ships as the Central government has approved US$20.13 million under the Shipbuilding Financial Assistance Policy (SBFA). The total contract value of these vessels amounts to US$110.39 million. India’s shipping ministry has received 95 applications, seeking in-principle approval for 170 ships that carry a contract value of US$340.26 million.
Under the SBFA policy, 21 shipyards with various capacities have registered under the scheme. Big names include L&T Shipbuilding Ltd, Cochin Shipyard Ltd, Goa Shipyard Ltd and Titagarh Shipyard Ltd.
Sheuly Ghosh
India Correspondent
