..:: VARUN SHIPPING COMPANY LIMITED ::..

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We aim to be a leading comprehensive hydrocarbon shipping company that provides shipping solutions to our customers by leveraging on our leading position in the LPG sector and our competitive strengths within the hydrocarbon sector.

The Indian hydrocarbon sector has grown in the past and we have established a presence and built strong relationships with oil majors in this sector. We plan to continue to increase our presence within the hydrocarbon sector.

Our vision is to expand our fleet to cater to the growing needs of our customers and benefit from the expected growth in demand for hydrocarbon transportation, both in India and abroad.

Our strategy is to assess the shipping requirements of our customers in the hydrocarbon sector both in India and globally and position our Group to meet these requirements effectively, efficiently and economically. We will plan to maintain our presence in India while we seek to increase our presence in the global market.

We have identified the following plans to leverage on our competitive strengths to achieve our strategies.

Expansion of fleet

We seek to continue to expand and modernise our fleet as and when opportunities arise. We believe that our operating costs would be lower with a modernised fleet and we expect we will experience economies of scale through improved terms that we expect to be able to negotiate with suppliers with an expanded fleet. We also believe that with a fleet expansion, we are well-positioned to benefit from the expected growth in demand for hydrocarbon transportation and the expected reduction in supply of Indian shipping fleet due to the scrapping of ageing Indian fleet over the next 5 years.

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We have developed strategies for the expansion of our fleet drawing from our experience of operating in the Indian domestic trade and international trade. Our strategy is to focus on addressing customer requirements in India and overseas, thereby ensuring that we continue to maintain our presence in India while we seek to increase our presence in the global markets. We therefore will evaluate our tonnage strategy based on our outlook of sectors and markets.

	Expansion strategy vis-à-vis sectors of business.
	We view our business in the following broad categories: (a) Niche market sectors Niche market sectors comprise sectors typically characterised by few charterers and owners, where the vessel requirements and designs are relatively specific to the trade involved. Typical examples of this are the LPG sector and offshore sector. (b) General market sectors General market sectors comprise sectors with a large base of charterers, and owners, where the vessel requirements and designs have evolved into standard designs and sizes. Typical examples of these sectors are dry bulk, crude oil and petroleum products. As part of our expansion strategy, we will evaluate our tonnage strategy based on our sector and market outlook and would consider expansion in our existing sectors such as the LPG sector, offshore sector, crude oil and petroleum products sector.
	Business Expansion strategy vis-à-vis India.
	Our expansion strategy vis-à-vis India would be to focus on acquiring cost efficient vessels where payback periods are lower. As India is a developing economy with frequently changing port facilities and trade patterns, shipping needs in India are subject to frequent change.
	Business strategy vis-à-vis international trade.
	Our expansion strategy vis-à-vis international trade is to focus on acquiring younger vessels of a global standard size with design well suited for various trades and versatile use for a variety of customers in different markets. As these vessels are acquired with a wider trade base in mind, the longer payback period for the vessels is generally acceptable and viable.

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Further strengthen our relationships with charterers

We intend to further strengthen our relationships with charterers by striving to meet or exceed our charterers’ business needs. As a major portion of our revenue is generated from repeat customers, we intend to leverage on our existing relationships with these charterers to expand our business.

We will in the long-term explore and evaluate measures to integrate our shipping activities with the overall maritime and logistic requirements of our charterers with a view to provide efficient and economical, maritime and logistical solutions to the end users.

Further strengthen our team of qualified and experienced executives

We seek to further strengthen our team of qualified and experienced executives as part of our long term business strategy to adapt to the changing business environment in the shipping industry, The ability to manage our assets effectively and serve our charterers’ needs well through qualified and motivated professionals is important as the industry becomes increasingly regulated and quality conscious. In addition to owning a well-diversified fleet of vessels, we will endeavour to avail of the best management resources and adopt the best technological practices within the industry to service our charterers’ needs well.

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Website Designed, Developed & Maintained by Vision 3K Technologies (India) Pvt. Ltd. 