31 August 2012

Indian supremacy in shipbreaking put to test:

MUMBAI: The resurgence that one saw in Indian shipbreaking activities could be short-lived as the industry in the region is entering another phase of development, impacted largely by legislative initiatives of local governments as well as by market forces.

Even though the Indian industry could recapture the title it lost to Bangladesh as the largest shipbreaking nation in the world by recycling 415 ships during 2011-12 , it was not a profitable year on record. The industry, with an estimated annual turnover of about Rs 10000 crore, reportedly lost almost Rs 800-1000 crore during the year due to rupee depreciation against US dollar. As the industry is dominated by cash deals, weakening rupee saw industry profits turning into losses, since October 2011.

Source: Economic Times. 27 August 2012

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