The diversity of the Shipping Corp of India (SCI) fleet may hinder its privatisation by the government.
This is according to industry figures cited by the Hindu Business Line, who believe breaking up the sale into vessel classes might be a wiser move.
A government committee has recommended the divestment of the whole 63.8% state holding.
The plans are due for cabinet consideration within two weeks.
VesselsValue assesses the 64-vessel fleet as worth $1.26bn.
Clarksons lists it with 135 ships, including five VLCCs, plus suezmaxes, aframaxes and other tankers.
The fleet also includes boxships, bulkers, OSVs, an LPG carrier and ferries.
The Mumbai-listed company has a market value of INR 20.45bn ($288m), with the state due to reap $184m if a sale goes ahead at that level.
One shipping company executive told the newspaper: “It is too spread out in terms of asset class. It will be a tough task to sell the whole company because of the sheer size and varied portfolio."
Breaking up the fleet?
A maritime consultant was quoted as saying: “Breaking it up would be a better bet because, with the current format, I don’t know how many buyers will be interested.
"This will require SCI to be delisted, liabilities to be segregated, and so on. It’s very difficult to break it up.”
The consultant added: "We have seen it in the past too when the government tried to privatise SCI in early 2000. A couple of non-shipping players had put in their bids and the sale process was eventually called off.”
But a former SCI director said that potential buyers would be attracted by property the company owns, including its 19-storey headquarters in Mumbai and other land holdings in the city.
