JM Baxi Plans Rs 10,000 Crore Investment for Major Diversification into Ship Recycling, Repair, Cruise Operations, and Subsea Cables

JM Baxi, a prominent private port terminal operator, has announced plans for a significant capital expenditure of approximately Rs 10,000 crore to expand its operations and diversify into new sectors. This investment will fund the establishment of ship recycling and repair centers, the launch of luxury cruise operations in India, and entry into the subsea cable deployment industry.

The company intends to raise these funds through a combination of loans from multilateral institutions, domestic banks, and its own generated profits (internal accruals). A substantial portion of the investment, around $1 billion (approximately Rs 8,500 crore), will be allocated to building a large greenfield ship recycling facility near Alang in Gujarat. This facility is expected to be operational by 2029 and will be capable of recycling seven to eight large ships simultaneously in its initial phase, reaching full capacity by the target year. The project will involve partnerships with other Indian companies.

In addition to the recycling hub, JM Baxi also plans to set up a ship repair facility in South India and has commenced the search for suitable locations for both projects. Furthermore, the company is exploring the launch of a luxury cruise service, which would accommodate up to 600 passengers and operate along India's tourist coastline, likely using a European-flagged vessel.

This strategic diversification aligns with the recent growth and government focus on India's maritime and infrastructure development sectors.

Impact This substantial investment by JM Baxi is set to bolster India's maritime infrastructure, enhance ship recycling and repair capabilities, create employment opportunities, and contribute to the growth of the cruise tourism sector. Entry into subsea cable deployment could also benefit India's digital connectivity. The overall impact is expected to be positive for economic development and job creation in the maritime and related industries. Rating: 8/10

Difficult Terms * **Ship recycling**: The process of dismantling old or decommissioned ships to recover valuable materials such as steel and other metals for reuse or sale. * **Greenfield facility**: A project built from scratch on a previously undeveloped site, requiring no demolition or adaptation of existing structures. * **Internal accruals**: Profits retained by a company that are not distributed as dividends, which can then be reinvested in the business. * **Multilateral institutions**: International organizations, such as the World Bank or IMF, composed of multiple countries that provide financial and developmental support. * **Subsea cable deployment**: The process of installing telecommunication or power cables on the ocean floor to transmit data or electricity between different locations.