Dredging Corporation Of India Ltd - Stock Valuation and Financial Performance

Dredging Corporation of India Limited (DCI) was established in the year 1976 to provide dredging services to the major ports of the country in India. DCI is a pioneer organization in the field of dredging and maritime development. DCI is fully equipped to offer the complete range of dredging and allied services to the users in India and abroad and to provide vital inputs for the national development. Its head office is strategically situated on the east coast of India at Visakhapatnam, DCI helps to ensure continuous availability of the desired depths in the shipping channels of the major and minor ports, Indian Navy, fishing harbors and other maritime organizations. It further serves the nation in a variety of ways, be it capital dredging for creation of new harbors, deepening of existing harbors or maintenance dredging for the upkeep of the required depths at various ports along the 7,500 Kms coastline of India.

In 1977, DCI was awarded a $10 million contract for the management of Yanbu Construction Port on the Red Sea, 350 km north-west of Jeddah, Kingdom of Saudi Arabia, for three years. DCI's services included pilotage, tugging, berthing, unberthing and mooring of ocean-going cargo ships, supervision of cargo-handling operations, maintenance and upkeep of port facilities and establishment of 0 & M services. In addition to this, DCI has efficiently performed stevedoring services at Yanbu Construction Support Port during 1981-83. During the period 2001-02 DCI executed shore pumping and reclamation works at Taichung Harber, Taichung Taiwan.

In September 2009, for the 18th consecutive year, Dredging Corporation of India has signed a memorandum of understanding with Government of India for the year 2009-10. The company expects the rating of 'Good' for the year 2008-2009.

Other facts about the company:

• DCI owns most modern and sophisticated fleet consisting of two Cutter Suction Dredgers and Ten Trailer Suction Dredgers.
• DCI is an MoU signing company with the government of India.
• DCI is a schedule B & a Mini Ratna- Category-I public sector enterprise.
• DCI is one among the public sector undertakings of India in which the government has disinvested its share holding. The shares of the company are listed at Delhi, Bombay, Calcutta & National Stock Exchanges of India.

DCI's provides services that include:

• pilotage
• tugging
• berthing
• unberthing and mooring of ocean-going cargo ships
• supervision of cargo-handling operations
• maintenance and upkeep of port facilities and
• establishment of O & M services.

In addition to this, DCI has efficiently performed stevedoring services at Yanbu Construction Support Port during 1981-83. During the period 2001-02 DCI executed shore pumping and reclamation works at Taichung Harber, Taichung Taiwan.

Activities undertaken by the company

• Maintenance Dredging The process of removing the accumulated material is called “Maintenance Dredging”.DCI is fully equipped to cater to the maintenance dredging requirements of all major Ports in India.
• Capital Dredging The process of removing the “virgin” soil to create the designed depth in the water bodies/adjacent to water bodies is called “Capital Dredging”. DCI has two cutter suction dredgers to meet he capital dredging requirements in the India/abroad. A new cutter suction dredger of 2000 CuM per hr dredging capacity will join the DCI fleet during Oct-2004.
• Beach Nourishment The process of deposition of sediments in the coastal line from the adjoining areas is called “Beach Noursihment” DCI ‘s Dredge-XII and Dredge-XIV are capable of shore pumping up to 2400m and Dredge-XVI and Dredge-XVII are capable of shore pumping up to 2500m and rain bowing facility.
• Reclamation The process of raising the land level to create a artificial land either just below or adjacent to water bodies is called “Reclamation”. The fill material is generally used from the adjacent water bodies so as to improve the depth in the water bodies as well as to use to same for creation of land. DCI’s Cutter suction Dredgers, Dredge-XII, Dredge-XIV, Dredge-XVI and Dredge-XVII are capable for reclamation purposes.

Awards/ Achievements

• DCI has achieved ISO 9001:2000 Certification for integrated dredging
• DCI has been declared as a Mini Ratna – Category -1 Public Sector entyerprise by the Government of India

With a wide range of facilities and resources at its command, supported by an adequate complement of infrastructural facilities and a dependable base of know-how, DCI meets the dredging challenges not only in India but also in other countries. DCI has also been receiving enquiries for dredging in the Middle and South East.

Projects undertaken

Major maintenance dredging assignments executed

• Kolkata Port Trust, Kolkata
• New Mangalore Port Trust, Mangalore
• Mormugao Port Trust, Goa
• Jawaharlal Nehru Port Trust, Mumbai
• Cochin Port
• Kandla Port Trust,  Kandla
• Mumbai Port Trust, Mumbai
• Paradip Port Trust, Paradip
• Visakhapatnam Port Trust, Visakhapatnam
• Ennore Port Trust, Ennore
• Indian Navy, Kochi
• Indian Navy, Mumbai
• Okha Port, Okha
• Karwar Port, Karwar

Capital dredging assignments executed during the last ten years

• Hazira
• Mormugao Port Trust, Mormugao
• Kolkata Port Trust, Kolkota
• Cochin Port Trust, Kochi
• Kakinada Port, Kakinada
• Jawaharlal Nehru Port Trust, Mumbai
• Paradip Port Trust, Paradip
• New Mangalore Port Trust, Mangalore
• Bharat Petrolium Corporation, JNPT, Mumbai
• Visakhapatnam Port Trust, Visakhapatnam
• Taichung Harbour, Taichung, Taiwan

Recent developments

Dredging Corporation of India has reported that on June 3, 2009 there was a fire accident on a Pontoon-TP-3, while undergoing cleaning and painting at Kolkatta Port Trust Jetty at Kolkata. Six people (2 belong to DCI and 4 belong to work shop, Dass Engineering works, Kolkata) got burn injuries and were admitted to Hospital and their condition is stated to be stable. The corporation has not suffered any operational loss due to the above incident.

Dredging Corporation of India received two survey launches in march 2009, built by the Chennai based Tebma Shipping Ltd. The launches were built by the company at a cost of Rs 16.9 crore with the instrumentation system costing Rs 4.6 crore.