Buoy oh buoy

Buoyancy in the LPG transportation markets appears to have driven shipping magnate Dilip Khatau into a hyper acquisition mode for Varun Ship...

Buoyancy in the LPG transportation markets appears to have driven shipping magnate Dilip Khatau into a hyper acquisition mode for Varun Shipping. Even after spending $100 million on new vessels last quarter, he is still looking. Of course this time he is only looking at the LPG sector where he already controls 71 per cent of tonnage under the Indian flag. The tycoon will be acquiring double hull tankers for a consideration of $80 million.

The tycoon is also quite optimistic about his chances in the LNG transportation market and seems eager to join hands with Exmar of Belgium and the Indian Oil Corporation (IOC) to bid for Petronet LNG’s project. It could be a big deal for Khatau given that Petronet will need at least 4 tankers to transport LNG to its Dahej and Kochi terminals.

This shipping tycoon has reason to be aggressive after all, last quarter, his profits jumped by a phenomenal 268 per cent compared with last year.

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After exiting non-core businesses like mobile telephony, cable television, and rubber plantations, the RPG Group tycoon Harsh Goenka is reworking his options in retail. Having ended his ties with his former retail JV partner Dairy Farm International (DFI) who then got 44 of the 93 Food World supermarkets, has left the tycoon with the other 49 stores. The tycoon also has exclusive control over the 30 Health & Glow stores.

Goenka within the next one year is expected to divest 20 per cent of his stake in RPG Retail, which he has renamed Spencer’s Retail. His hypermarket Giant, supermarkets Food World for food, and Health & Glow for cosmetics, health products and medicines have all been now brought under the old and reliable Spencer’s brand. The tycoon’s Music World will continue to be a stand-alone brand.

In the $213 billion Indian retail industry, organised retail constitutes a mere 2 per cent, but has the potential to grow to 10 per cent over the next decade even without outside help.

With retail experts believing that by the end of the decade, the country could have more than 250 hypermarkets, the tycoon is banking heavily on his own hypermarkets to drive growth. He has even started finalising locations for 15 new hypermarkets. He also has firm plans to double his supermarkets count from the 49 he was left with after DFI. The tycoon, however, has international plans for Music World — expanding into the seven neighbouring countries which share some common musical heritage.

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