K M Sheth, the executive chairman of Great Eastern Shipping, was recently presented with the Varuna Award by the National Maritime Day Celebration Committee in recognition of his “distinguished and outstanding contribution to the development and growth of the Indian shipping industry.”
From pioneering Indian tramp shipping to private-sector participation in offshore drilling, Great Eastern’s 56-year history is a story of enterprise and leadership. The company was incorporated in the summer of 1948, and acquired its first Liberty ship from the USA. It was the first Indian shipping company to place an order for the construction of ships at the Kobe Shipyard in Japan.
Over the years, Great Eastern’s fleet has grown from one ship of 10,615 dwt to 44 ships totalling 3.01 m dwt, plus 31 offshore units – the largest private-sector shipping company in India. The financial year 2004–5 profits were the highest ever, up 72% to Rs 809cr on turnover of Rs 2,119cr.
“The year was undoubtedly the ‘year of the shipowners’, with demand driving freight rates across all segments of shipping,” says Mr Sheth. “Whilst tanker freight registered new highs as a result of a very steep rise in global oil demand, dry bulk rates were driven by China’s seemingly insatiable appetite for raw materials.”
Looking ahead, Mr Sheth relates how global demand for oil and commodities varies over time and this subjects freight rates to volatility. “Great Eastern Shipping appreciates the cyclical nature of this industry and recognises the challenge of continuing to achieve superior returns by prudently managing commercial and financial risks,” he says and concludes: “While market conditions remain challenging, we look forward to the future with confidence.”