Summary of Proposed Investment
Project Number
7107
Company Name
Varun Shipping Company Limited
Date SPI Disclosed
Dec 22, 1995
Country
India
Industry
Infrastructure
Status
Completed
Sector
Water Transportation
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Mar 29, 1996
Signed : Apr 11, 1996
Invested : May 16, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | India: Varun Shipping Company Limited - |
| Region | Asia |
| Sector |
Projected Board DateJanuary 2, 1996
Company NameVarun Shipping Company Limited
Technical Partner and/or Major Shareholders
Varun is a publicly listed company on the Bombay Stock Exchange. Major shareholders are the Khatau family (26.0%), Unit Trust of India (9.0%), other Indian financial institutions (5.0%) and IFC (4.8%). The general public holds 55.2% of Varun’s shares.
Project Cost Including proposed IFC investment
Estimated project cost is up to US$73.5 million, including the investment in 5 secondhand vessels. IFC has been asked to consider an A loan, for IFC’s own account, for up to US$10 million; a B loan, for the account of participants, for up to US$20 million; and an investment of up to US$4.5 million in newly issued equity for a maximum of 5% of the Company’s shareholder capital, increasing IFC’s total shareholding to a maximum of 9.8%.
Location of project and Description of site
Varun is headquartered in Bombay in the state of Maharashta, India. Ships are trading on international cross trades, India-related import and export trades, and coastal trades.
Description of Company and Purpose of Project
Repeat Investment - Varun is one of India’s major private shipping companies, operating a fleet of 10 vessels in the product tanker sector, dry bulk sector and off-shore supply vessel sector. The project is to expand and diversify Varun’s fleet by acquiring 5 secondhand vessels, increasing Varun’s current tonnage of 206,306 DWT to approximately 315,000 DWT. This will enable Varun to participate in the expected increase in India-related trades and international cross trades. The investment program will also help to increase India’s shipping tonnage, which is an important goal of the Government of India.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedures. Environmental issues associated with this project include air emissions, liquid effluents, spill prevention, hazard control, fire prevention, emergency response and marine safety. Varun will operate its new and existing vessels in accordance with all applicable International Maritime Organization (IMO) pollution prevention and safety standards, and its other operations in accordance with relevant World Bank policies, and general environmental, health and safety guidelines established for this project.
The is December 14, 1995 from the Public Information Center.
| Date SPI sent to PIC | December 1, 1995 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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