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Overview

GRSE is a Shipbuilding Company in India under the administrative control of the MOD and primarily adhere to the Shipbuilding Requirements of the Indian Navy and the Indian Coast Guard. In addition to GRSE’s Warship Building Capabilities, it is engaged in Engineering and Engine production activities. As a part of GRSE’s Engineering Division, it manufactures Deck Machinery Items, Pre-Fabricated Portable Steel Bridges and Marine Pumps. GRSE’s Shipbuilding Division contributes a significant majority of it’s revenue from operations. GRSE had derived 81.23%, 75.10%, 79.09% and 83.33% of it’s Gross Revenue from operations in 30 Sep 17, Fiscals 2017, 2016 and 2015 respectively from it’s Shipbuilding Division.

 

GRSE was incorporated in 1934 under the Indian Companies Act, 1913, and was later acquired by the Government of India from Macneill & Barry Limited on 19 May 1960. Shortly after becoming a CPSE in 1960, GRSE had built India’s First Indigenous Warship–the INS Ajay, in the year 1961.

Brief history of GRSE

Prior to GRSE being initially incorporated as a limited company, it was engaged in the business of operating Shipbuilding and Repair Workshops since 1884 as an unincorporated entity. It was incorporated under the name and style of “Garden Reach Workshops Limited” on 26 Feb 1934 with the Registrar of Companies, Calcutta vide Certificate of Incorporation No. 7891 under the applicable provisions of the Companies Act, 1913. The word ‘Private’ was added to the name of GRW and the name became “Garden Reach Workshops Private Limited” and a fresh Certificate of Incorporation was issued dated 05 Nov 1957 by the Registrar of Companies, West Bengal pursuant to the Shareholders Resolution passed in the General Meeting held on 12 Jul 1957. In the year 1960, GRW was acquired by the GOI and since then the Share Capital of GRW is wholly owned by the President of India along with its nominees from time to time. The word ‘Private’ was deleted from the name of GRW by the Registrar of Companies, West Bengal on 30 Nov 1961 pursuant to the Shareholders Resolution passed in the General Meeting held on 28 Mar 1961 and the name of GRW become “Garden Reach Workshops Limited” and the status of GRW was changed from ‘Private Limited Company’ to ‘Deemed Public Limited Company’ under the provision of Section 43(1A) of the Companies Act, 1956 with effect from 08 Jan 1976. The name of GRW was again changed from “Garden Reach Workshops Limited” to “Garden Reach Shipbuilders & Engineers Limited”, as mentioned in the fresh Certificate of Incorporation issued on 31 Dec 1976 pursuant to the Shareholders Resolution passed in the General Meeting held on 18 Dec 1976. The Company was converted into a Public Limited Company pursuant to the Shareholders Resolution passed in the Annual General Meeting held on 25 Aug 17 and a fresh Certificate of Incorporation dated 17 Nov 17 was issued by the Registrar of Companies, West Bengal. GRSE as on date is registered as a Government Company (Public Company) as “Garden Reach Shipbuilders & Engineers Limited” under CIN U35111WB1934GOI007891.

Changes in the Registered Office

The Registered Office of GRSE was changed from 2, Fairlie Place, Calcutta, West Bengal to its present location at 43/46 Garden Reach Road, Kolkata – 700 024, West Bengal with effect from 01 Apr 1961 pursuant to the Shareholders Resolution passed in the Extra Ordinary General Meeting dated 28 Mar 1961 due to takeover of GRSE by the GOI which resulted in the change in the management of GRSE.

Major events in GRSE history

The table below sets forth the key events in the history of GRSE:

 

Calender Year

Major Achievements

1961

Built the Indigenous Warship of the Country INS Ajay, which was the First Naval Ship built in the Country after India's independence.

1980

Built the Patrol Vessel for Indian Coast Guard, CGS Rajhans (GRSE Yard 2003).

1981

Designed and built Survey Vessel for Indian Navy. This 1900-ton ship, INS Sandhayak was delivered on 26 Feb 1981.

1984

Designed In-House and built the First of Class Landing Ship Tank (Large).

1992

The Ship of New Design FPV, CGS Priyadarshini (GRSE Yard 2031) was delivered to Indian Coast Guard on 03 Mar 1992.

1994

The First of Class P-16A Guided Missile Frigate “INS Brahmaputra” (GRSE Yard 3009) was Launched on 26 Jan 1994.

Built Research Vessel.  The Ship was named as “Sagardhwani” which means 'Sound of Sea”.

1997

Designed & Developed, Portable Steel Bridges for the First time in India.

2000

Built and Delivered the Fast Attack Craft (GRSE Yard No. 2047) on 11 Sep 2000 after extensive trials.

2009

The two WJFACs, INS Carnicobar and INS Chetlat were delivered on 09 Jan 09 to Indian Navy.

2011

GRSE signed the contract for building CGS Barracuda, a Multi-Role Offshore Patrol Vessel for National Coast Guard of Mauritius on 04 Mar 11 for First Ever Export of a Warship. CGS Barracuda also had the distinction of being the First ever Ship to be built at the new Integrated Shipbuilding Facility, created in GRSE Main Yard under Modernization.

2014

The First of Class ASW Corvette, INS Kamorta, was delivered to Indian Navy on 12 Jul 14.

2016

The First of the Four (4) Follow-On WJFACs, INS Tarmugli (GRSE Yard No 2109) was delivered to the Indian Navy on 16 Apr 16.

2016-2017

Three Ships of the Class New Generation Landing Crafts have been delivered to Indian Navy on 30 Sep 16 , 20 Jul 17 and 09 Jan 18.

 

Over the years, GRSE had established capabilities for In-House Design and Shipbuilding and has made considerable contributions to the Indigenous Warship Construction program of our Country. GRSE’s Shipbuilding Product Line spans from Technologically Sophisticated Frigates and Corvettes to Fast Patrol Vessels. In last five (5) decades, GRSE had built and delivered Ships ranging from Small to Large and Advanced Vessels including Frigates, Anti-Submarine Warfare Corvettes, Missile Corvettes, Landing Ship Tanks, Landing Craft Utilities, Survey Vessels, Fleet Replenishment Tankers, Fast Patrol Vessels, Offshore Patrol Vessels, Inshore Patrol Vessels, WJFAC, Hover Crafts and Fast Interceptor Boats to the Indian Navy, Indian Coast Guard, MHA and Governments of other Countries. GRSE had built and supplied more than Seven Hundred Fifty (750) Vessels to carry Men and Materials as well as for the Surveillance of the Coast Line. Over the years, GRSE have responded to the varied Shipbuilding Requirements of the Indian Defence Services and have evolved from building Simpler Vessels to building Bigger and Technically Advanced Warships.

 

Presently, GRSE has Three (3) Separate Facilities for Shipbuilding, all of which are located in close vicinity of each other at Kolkata, India. GRSE build the Ships at the Main Works Unit and the Rajabagan Dockyard Unit. The Third Facility, the Fitting Out Jetty (FOJ) Unit is primarily used for Fitting Out and Repair of Ships. GRSE acquired the Rajabagan Dockyard from Central Inland Water Transport Corporation Limited in the year 2006. GRSE’s DEP Unit is engaged in the Testing and Overhauling of Marine Propulsion Engines and Assembly of Semi-Knocked Down units of Diesel Engines. GRSE’s Engineering Segment is engaged in the Manufacturing and Fabrication of Portable Steel Bridges, Deck Machineries of Ships and Marine Pumps.

 

Over the years, GRSE has been credited with many Firsts in the Indian Shipbuilding Industry. For instance, GRSE is the First Indian Shipyard to integrate Carbon Composite Superstructure with Steel Hull for the construction of the Third ASW Corvette for the Indian Navy, which resulted in a reduction in Weight and increase in Stability of the Ships. In the year 2000, GRSE became the First and the only Indian Shipyard to build and subsequently deliver a Fleet Tanker to the Indian Navy and to build and subsequently deliver a Hovercraft to the Indian Coast Guard among others. These are in addition to Pioneering Works in supplying the First ever Indigenous Warship for Indian Navy (INS Ajay). (Source: ICRA Report)

 

On 05 Sep 06, GRSE was conferred with the status of Schedule B & Mini Ratna-Category I Company by the Department of  Public Enterprises under the Ministry of  Heavy Industries and Public Enterprises, Government of India. GRSE had also been conferred with several Awards including the Defence Minister’s Trophy “Best Performing Shipyard Award” for Four (4) consecutive years (Fiscal 2010-2011, 2011-2012, 2012-2013 & 2013-2014), from the Hon'ble Raksha Mantri; the Defence Minister’s Trophy “Best In-house Design Effort” on 30 May 17 for Mauritius Coast Guard Ship, CGS Barracuda among others.

Awards and Recognition

GRSE had received the following awards:

 

Year of Award

Award

2006

Accorded the Status of Mini Ratna - Category I

2010-11

Best Performing Defence Shipyard

2010-11

Excellent Grading under MoU signed with the GOI

2011-12

Best Performing Defence Shipyard

2011-12

Excellent Grading under MoU signed with the GOI

2011-12

Indira Gandhi Rajbhasha Puraskar – 2nd prize in ‘C’ Region for the Implementation of Official Language Hindi in GRSE

2012-13

Best Performing Defence Shipyard

2012-13

Indira Gandhi Rajbhasha Puraskar – 1st prize in 'C' Region for Implementation of Official Language Hindi under PSU Category

2012-13

Excellent Grading under MoU signed with the GOI

2013-14

Best Performing Defence Shipyard

2013-14

Excellent Grading under MoU signed with the GOI

2014-15

National Talent Management Leadership Award 2015 in the Best Onboarding Program category from the World HRD Congress

2014-15

Most Caring Company Award at CSR Congress-2015

2014-15

Rajbhasha Kirti Puraskar – 2nd prize in ‘C’ Region for Excellence in Implementation of Official Language Policy under PSU category

2015-16

Raksha Mantri’s Award for In-House Design Effort of CGS Barracuda

2015-16

Rajbhasha Kirti Puraskar – 1st Prize for Excellence in Implementation of Official Language in GRSE.

2016

Quality Leadership Award by Quality Circle Forum of India.

2016

Rajbhasha Kirti Puraskar – 2nd Prize for Excellence in Implementation of Official Language

2016

Rajbhasha Kirti Puraskar – 2nd Prize for the Magazine ‘Rajbhasha Jagriti’

2017

Quality Leadership Award by Quality Circle Forum of India

2017

Runner-up in the category of ‘Contribution of Women in PSEs’ by ICC

2017

Runner-up in the category of ‘Human Resource Management’ by ICC

2017

Runner-up in the category of ‘CSR & Sustainability’ by ICC

2017

ICC PSE Excellence Award in the category of “Company of the Year”

2017

ICC PSE Excellence Award in the category of “Corporate Governance”

2017

SCOPE Corporate Communication Excellence Award 2017 in the category of Brand Building through Inclusive Growth Initiatives

2017

SCOPE Corporate Communication Excellence Award 2017 in the category of Best Corporate Communication Campaign/ Program (External)

 

GRSE had in the past and continue to associate with several Technology Firms in the Industry like MTU and other International/ Domestic Entities for different Business Segments such as Diesel Engines and Deck Machinery, which has added to GRSE’s credibility in the International Market.

 

In the Half Yearly ended on 30 Sep 17, Fiscal 2017, 2016 and 2015, GRSE’s Revenue from Operations (Gross) were ₹4,931.50 million, ₹9,304.06 million, ₹16,620.03 million and ₹15,675.25 million. GRSE’s Profit After Tax for the 30 Sep 17, Fiscals 2017, 2016 and 2015 were ₹180.69 million, ₹122.32 million, ₹1,620.47 million and ₹517.28 million respectively. As of 28 Feb 18, GRSE’s Order Book for all the Product Categories was ₹208,033.60 million, of which the Shipbuilding Order Book consisted orders of Fourteen (14) Vessels with an Aggregate Outstanding Revenue value of ₹207,307.40 million. GRSE’s Order Book only represents Business that is considered firm. In addition to the Firm Order Book, as of the date of this DRHP, GRSE have also been adjudged the Lowest Bidder for Four (4) Survey Vessels (Large) and Eight (8) Anti Submarine Warfare Shallow Water Craft (ASW SWC), which presently does not form a part of the Order Book as Letters of Award have not been issued to GRSE.

 

Competitive Strengths

GRSE benefits from the Strengths listed below that together differentiate it from the Competitors.

Modern Manufacturing Platform and Integrated Shipbuilding Facilities to deliver Quality Products

GRSE believes that the Modern Infrastructure Facilities available at the Shipyard coupled with the Vast Expertise provide a significant edge over other Domestic Defence Shipyard. GRSE has been taking steps to ensure simplification in the Process and Procedures, adopt Modern Practice and Technology, enhance Capacity and Modernize Infrastructure and improve on Governance.

GRSE has undertaken Major Modernization of its Infrastructure. In the year 2013, GRSE developed a new Integrated Shipbuilding Facility at the Main Works Unit that use Modular Construction Technology when building Warships, which enable GRSE to reduce the Shipbuilding Period, improve Quality through the implementation of Integrated Construction Technology, and to construct Ships in line with the Global Practices in the Shipbuilding Industry. GRSE’s Facilities help it to produce Eight (8) Large Ships and Twelve (12) Medium/ Small Ships concurrently. In addition, GRSE have constructed new Hull Shop, Module Shop for Mega Block Integration, Dry Dock and Building Berth, which are being supported by 250-Ton Goliath Crane. GRSE believes that the Advanced Modular Construction Technique enables it to simultaneously build a greater number of Large Warships in a more Truncated Time Period at Main Works Unit. GRSE’s Main Works Unit is supported by the FOJ Unit, which is dedicated to Fitting Out and Repair of Ships. Fitting Out follows the Float-Out of a Vessel and precedes Sea Trials. GRSE’s In-House Facilities are also augmented by hiring Larger Dry Docks of the Kolkata Port Trust on as and when required basis.

While GRSE have been enhancing the Infrastructure, in parallel, improvements and upgradation of Design Capabilities, new Technology, Methods and adoption of Quality Initiatives have also been undertaken and are underway. To further increase the construction capacity, GRSE use Rajabagan Dockyard exclusively for the construction and fitting out of Small Ships. The Rajabagan Dockyard facilities are further being upgraded for construction of more Smaller Ships.

Further, GRSE completed the Modernisation of it’s DEP unit in Ranchi in 2016. The Modernisation was intended to create a new, state-of-the-art Diesel Engine Assembly Shop that would enable carrying out Overhaul and Assembly of Engines in a Dust-and-Moisture-proof Environment. With commissioning of the “Modernised Diesel Engine Assembly Shop”, GRSE’s DEP unit is poised to take up work on next generation of Marine Diesel Engines and also move ahead on to produce Marine Diesel Engines under 'Make in India' Initiatives.

GRSE provide End-to-End Solutions

GRSE has a dedicated Central Design Office (“CDO”) undertaking Design and Research and Development, which comprises of Highly Skilled Workforce of Seventy-Four (74) members as on date of the Draft Red Herring Prospectus. GRSE’s CDO team uses various Software ranging from Aveva Marine, NAPA for Naval Architectural Design, AutoCAD for Drafting Work and other Softwares for Structural Analysis. With it’s dedicated CDO team, GRSE have achieved Innovative Measures in carrying out Complex Warship Designs work, some of which are Landing Craft Utility Mark IV, which is an In-House Design Product with 15 knots Speed, which is unique for a vessel of this size and type.

GRSE believes in it’s ability to provide End-to-End solutions to our Customers, ranging from Product Conceptualization, Design, System Integration and Project Management increases the capability to meet customer demands. When a Customer has a Project Proposal, GRSE utilizes it’s resources to fulfill the entire project from the Design Stage to Delivery of the Finished Product. This provides GRSE an increased level of understanding with respect to meeting our customers’ needs. Also, GRSE believes that by designing the ship it delivers, will allow it to gain a greater Understanding of the Ship it is expected to Build and Control over the Manufacturing Process. Because GRSE manages the entirety of the Project, as it has dedicated Production Lines for independently managing construction of Small/ Medium and Large Ships. Thus GRSE gain efficiencies relative to some of the Competitors who participate in the Construction of Ships, but do not participate in other Stages of the Project. Further, GRSE also avoids a Significant Amount of Reliance on Third-Parties to fulfill an Order relative to it’s Competitors.

Strong and Established Relationships with Indian Navy and Indian Coast Guard

GRSE have long-standing relationships with the Indian Navy and Indian Coast Guard. The relationship and experience with the Indian Navy is over Five (5) Decades, beginning when it delivered the INS Ajay, the First Indigenous Warship, to the Indian Navy in 1961. These relationships allow GRSE to secure Shipbuilding Projects. GRSE have delivered Ninety-Five (95) Ships to the Indian Navy and Indian Coast Guard on an aggregate basis. Both of GRSE’s Historical Operations and Ongoing Operations exhibit the level of Satisfaction and Depth of Relationships it possess with respect to the Indian Navy and Indian Coast Guard.

GRSE have historically delivered Ships to the Indian Navy and Indian Coast Guard that no other Indigenous Shipbuilding Companies have delivered to them. For instance, in the year 2000, GRSE became the First and only Indian Shipyard to build and subsequently deliver a Fleet Tanker to the Indian Navy and to build and subsequently deliver a Hover Craft to the Indian Coast Guard. Further, in the year 2009, GRSE became the First and only Indian Shipyard to build and subsequently deliver to the Indian Navy a Landing Ship. In 2017, GRSE built and delivered to the Indian Navy, for the First time in the Company’s history, Warships that have Weapon and Sensors Trials completed which until then were undertaken at various Indian Navy facilities Post Delivery of Warships. (Source: ICRA) Additionally, GRSE built and delivered the INS Kiltan, an Anti-Submarine Warfare Stealth Corvette and the First Indian Warship with a Superstructure made entirely of Composite Material, in 2017. GRSE also have several Ongoing Projects with the Indian Navy and Indian Coast Guard. In the Fiscals 2017, 2016, 2015, 2014 and 2013, GRSE have built a total of Sixteen (16) Ships, out of which Nine (9) Ships were delivered to the Indian Navy; Six (6) Ships were delivered to the Indian Coast Guard; and One (1) Ship was delivered to the Government of Mauritius.

Strong Order Book

GRSE’s Aggregate Order Book as on 28 Feb 18 was ₹208,033.60 million, comprising Gross Order Value in the Shipbuilding Segment, Engineering Segment and the Engine Segment of ₹207,307.40 million, ₹633.80 million and ₹92.40 million, respectively. The Aggregate Value of GRSE’s Order Book represents the total Nominal Value of the Contracts that have not been completed, excluding the portion of Revenue in respect of those Orders that GRSE have recognized as of such date.

GRSE’s Current Order Book provides with a deep pool of Revenue-Generating Projects and that the Revenue generated from it’s Order Book shall allow to invest in the Design Capabilities and Facilities in order to become more Efficient and Technologically Sophisticated. GRSE currently have Contracts to deliver Twenty (20) Ships to the Indian Navy and Indian Coast Guard, out of which Five (5) Ships have been delivered. A number of those Ships are Large, Advanced Vessels that deliver Significant Profit Margins of the Ships GRSE construct. The Shipbuilding Contracts, GRSE enter into with it’s Customers stipulate the agreed Specifications of the Vessel and Classification of Classification Society with which the Vessel is intended to be certified. Typically, GRSE is permitted to subcontract any portion of the construction work of the vessel to subcontractors, other than Few Major Sub-Contract tasks such as the Main Hull Structure and Superstructures for which it requires the Prior Approval of the Client.

However, GRSE’s Order Book information is only indicative of Future Revenues and one should not place undue reliance on such information in making an investment decision.

Our growth rate, the number of orders we have received in the past and our current order book may not be indicative of our future growth rate or the number of orders we will receive in the future.

GRSE’s Order Book on hand, as of a certain date, represents the total Nominal Value of the Contracts that have not been completed, excluding the Portion of Revenue in respect of those Orders that GRSE have recognized as of such date. As of 28 Feb 18, GRSE’s Shipbuilding Order Book consisted of  balance Fourteen (14) Vessels with an Aggregate Outstanding Revenue value of ₹207,307.39 million. The successful conversion of these Orders into  Revenue depends on a number of Factors including, among other things, Absence of Adverse Changes in the Indian Shipbuilding Markets, the Availability of Funds with Shipowners, Competition, GRSE’s Production Capacity, it’s Research and Development, and it’s Ability to Deliver the Vessels on time. There can be no assurance that GRSE’s Order Book will not be affected by Delays, Cancellations and the Renegotiations of the Contracts, and therefore there can be no assurance that GRSE will be able to deliver all of it’s existing Orders on Schedule and Successfully. Furthermore, there can be no assurance that GRSE’s Order Book is an accurate indicator of it’s Future Performance or Future Revenue. The growth of GRSE’s Order Book is a cumulative indication of the Revenues that is expected to recognise in future periods in relation to Signed Contracts. GRSE’s Order Book only represents Business that is considered Firm, although this is subject to, among other things, Cancellation or Early Termination because of a breach by GRSE of it’s Contractual Obligations, Non-Payment by our Customers, a Delay in the Initiation of it’s Customers' Projects, unanticipated Variations or Adjustments in the Scope and Schedule of GRSE’s Obligations for reasons outside it’s and it’s Customers' Control or Change in Budget Appropriations which affect our Customers. Although the overall Order Book Position of GRSE is healthy, since the Construction of certain Vessels are presently at Design and Preparatory Stage, the Effective Value of Production that could be achieved in the next couple of years will be limited due to the skewed nature of Product Realization. Any Adverse Effects on GRSE’s conversion of Order Book Contracts into Revenue may have an adverse effect on it’s Business, Results of Operations, Cash Flows and Financial Condition.

Make in India Initiative

GRSE has an advantage over Global Shipyards in securing Contracts to build Vessels for the Indian Navy and Coast Guard because it qualifies for the Make in India initiative under the DPP. The Make in India Initiative grants Indigenous Manufacturers a Competitive Advantage when supplying to the Domestic Market. The MOD has given the Highest Priority to Indigenously Designed, Developed and Manufactured (“IDDM”) Products for Capital Procurement. GRSE’s repeat Customers, the Indian Navy and Indian Coast Guard, constitute Part of the Domestic Market and are therefore, required to give it a Preference over Global Shipyards in certain circumstances. As part of the Make in India initiative, internally GRSE have put in Considerable Efforts in increasing the Percentage of Indigenization over the last few years. GRSE have made significant progress in Indigenization of it’s Products in terms of Value of Production during the last year.

Business Diversification

Shipbuilding is GRSE’s Key Product Offering. In addition to GRSE’s Core Manufacturing Activities for Shipbuilding, it offers Diversified Products and Services to it’s Customers including Portable Bridges, Deck Machinery Items, Pumps and Engines. GRSE produce Bridges at it’s 61 Park Unit and Taratala Unit which enable it to counterbalance the Cyclical Nature of the Shipbuilding Income Stream. GRSE’s Product Diversification allows to rely on Different Product Areas to generate Revenue when the Market Conditions dictate a decrease in Demand for Shipbuilding.

Further, GRSE is not aware of any other Shipyard in India that has a Dedicated Deck Machinery Equipment Facility or an Engine Assembling and Testing Facility, both of which, are essential for the Shipbuilding and Testing Process. In the absence of such Facilities, GRSE’s Competitors approach Third-Parties to complete such tasks related to Deck Machinery and Engine Assembly and Testing. This Vertical Integration enables GRSE to produce Ships in a more Time Efficient manner because of it’s Non-Reliance on Third-Parties.                                

Experienced Workforce

GRSE’s Qualified and Experienced Senior Management Team and Technically Skilled Employee base have contributed to the Growth of it’s Operations and the Development of In-House Processes and Competencies. GRSE’s Human Resource Policies are aimed towards Enhancement of Institutional Knowledge and Skills. GRSE’s Human Resource Department has active Initiatives to further develop the Skills and Knowledge of it’s Employees.

GRSE’s Senior Management Team consists of Technically Qualified and Experienced Professionals who bring with them Extensive Experience in Shipbuilding, Design and Engineering, Order Management, Operations, Human Resources, Finance and After-Sales Services. GRSE have a large pool of Experienced Engineers. As of 28 Feb 18, Engineers constitute 20.10% of our total Employees. GRSE believes in high standards of Ethical Integrity and it ensures that all it’s Business Functions are carried out in a Transparent Manner. GRSE’s Talented and Motivated Employees have been key to it’s Success so far and will further enable it to Capitalize on Future Growth Opportunities.

 

GRSE’s Strategies

Looking at the future Order of Warship Building for Indian Navy and the Indian Coast Guard, GRSE believes that in the next decade, it’s existing Customers alone can provide GRSE with opportunities to have a Robust Order Book with Full Capacity Utilization. In addition, GRSE is also focusing on Order Prospects from Foreign Countries. GRSE is committed to continue to increase it’s Market Share across the Product Verticals and to Diversify it’s Customer Base and Geographical Footprint, thereby minimizing the Exposure to Particular Sectors, Markets and Customers. Pursuant to the SEBI Exemption Letter-I, GRSE, being an Entity under the Administrative Control of the MOD has been exempted from disclosing its Strategies since the same may compromise National Interests. In relation to the same, GRSE is setting out below some of it’s Generic Strategies, which should not have a bearing on the National Interests.

Further Strengthen GRSE’s Relationship with Indian Navy and Indian Coast Guard

GRSE intends to continue to further strengthen our Strong Relationships with the Indian Navy and Indian Coast Guard in order to generate Revenue from their Acquisition Plan, which aims to significantly expand the Fleet Ship Size of the Indian Navy and Indian Coast Guard. Available information on the Indigenous Construction Component of Acquisition Plans for the next decade indicate that the Indian Navy and Indian Coast Guard will acquire Indigenous Aircraft Carrier, Fleet Support Ships, Frigates, Mine Counter Measure Vessels, Fast Attack Crafts, Patrol Vessels, New-Generation Corvettes, Survey Vessels, Fuel Barges. GRSE intends to focus on securing Orders for the Construction of Major Weapon Vessel Platforms (Frigates and Corvettes) to optimize the Capacity Utilization of it’s Facilities.

Upgrading GRSE’s Technological Capabilities and Facilities 

GRSE intends to Advance and improve it’s Technological Capabilities and Facilities. In order to maintain it’s relationships with the Indian Navy and Indian Coast Guard, GRSE must continually meet their Shipbuilding Requirements. From constructing Ships on a Shorter Timeline, to the Production of Ships with greater Technological Capabilities, the Indian Navy and Indian Coast Guard require constant Innovation and Improvements in Efficiency from Shipbuilders. In 2013, GRSE laid the foundation with respect to meeting the future requirements of the Indian Navy and Indian Coast Guard by Modernizing the Main Works Unit to allow for Modular Construction, which reduces Costs and the Shipbuilding Period. Further, in 2016, GRSE Modernised it’s Engine Plant at Ranchi. Over the next Two (2) years, GRSE intends to augment the Capabilities of the Rajabagan Dockyard and enhance the Shipbuilding Capabilities. GRSE also plans to invest in Research and Development Capabilities to more completely meet the requirements of the Indian Navy and Indian Coast Guard.

GRSE’s Collaborations

GRSE currently Collaborate with MTU to produce MTU 396-04, 4000, 1163, 538, and 183 series Diesel Engines. Also, in 2016, GRSE delivered 9 Engineering-Rail Less Helo Traversing Systems. The Rail Less Helo Traversing Systems were Designed in Collaboration with an International Entity having the relevant expertise.

Further, GRSE have entered into a MoU for development of Engines for Marine Applications with an Engine Manufacturer in October 2017. The Scope of Collaboration is to produce Diesel Engines for Diesel Alternators for Marine Applications for Indian Navy and Indian Coast Guard Vessels in the range 50-500 kW with an aim towards Self-Reliance and to promote “Make in India” Initiatives.

Human Resources

GRSE have a group of Dedicated, Committed and Highly Skilled Personnel and Staff. As of 28 Feb 18, GRSE employed a total workforce of 2,224 full-time Employees, which comprised of 486 Officers, 119 Supervisors, 110 Office Assistants and 1,509 Operatives in various Departments. All of the Employees are based at GRSE’s various Facilities in Kolkata, Ranchi, Delhi, Mumbai and Visakhapatnam. As of 28 Feb 18, around 3,249 Contract Labours were engaged by various Contractors for Execution of Job Contract placed on them by GRSE. It’s Contract Workforce Strength undergoes regular change based on the necessity and work involved. 

Operative and Office Assistant category of Employees are unionized. GRSE have separate Memorandum of Settlement (“MoS”) with Operatives’ Trade Union recognized by the Company as the Sole Bargaining Agent and Office Assistants’ Union. GRSE believe that the relationship between it’s Management and the Employees is generally cordial.

Employee Training

GRSE recognize that it’s Employees are an invaluable resource and that the Competency and Dedication of the Employees has been instrumental to GRSE’s success. To help ensure that GRSE’s Employees are equipped with the necessary Skills and Expertise, it conduct various Training Programs for it’s Employees. Such Training Programs are either conducted In-House by the Senior Staff or External Faculty and they involve both Classroom Lessons and On-the-Job Training by Qualified Instructors.

Health, Safety and Environment

GRSE believes that it has an Effective Risk Management system with Self-Regulatory processes and procedures for ensuring that the Business is conducted in a Risk Conscious manner. Under GRSE’s Risk Management System, Operational, Contractual, Financial, Business and Reputational Risks arising are assessed by the respective Risk Owners and suitable Mitigating Measures are taken in advance.

GRSE is committed to Creating and Maintaining a Safe Work Environment on an ongoing basis. GRSE is subject to Extensive Health, Safety and Environmental Laws, Regulations and Production Process Safety and Environmental Technical Guidelines which govern GRSE’s Processes and Facilities. GRSE have implemented a Health and Safety System to inform New Employees of it’s Work and Safety Policies. GRSE’s Employees holding Supervisory Positions are required to ensure that all Employees comply with these Policies.

GRSE also focus on raising Safety Awareness among it’s Employees and Subcontractors’ Workmen through various In-House and Onsite Training Programs.

Industrial Security

GRSE’s Facilities qualify as ‘Prohibited Place’ under the Official Secrets Act, 1923, and therefore Industrial Security is of critical importance for GRSE. The physical security of GRSE’s Facilities at Main Works, Rajabagan Dockyard and FOJ has been entrusted to Central Industrial Security Force, which is a Central Armed Police Force of the Government of India, who are responsible for providing integrated security cover to Major Critical Infrastructure Installations. As per the security arrangements, GRSE have round-the-clock vigil, with Armed Personnel and Wireless CCTV Surveillance Systems covering all Critical Locations and Installations. GRSE also have a Biometric Access Control System for various Categories of Persons entering the Shipyard. There is a Visitor’s Facilitation Centre for the Scrutiny and Verification of the Credentials of visitors to the Company.

Information Technology

Information Technology is an essential element of GRSE’s Operations Infrastructure. GRSE invest in Information Technology as it’s use directly Lowers Cost, enables Scalable Operations, improves Efficiency, reduces Business Continuity Risks and enables a Secure Enterprise. Due to the sensitive nature of the Business, GRSE have implemented the IT Policy and Guideline, which sets out the Security Policy relating to Administration of the Information Technology including for Procurement of IT Equipment, Computer Asset Recording Procedure, IT Asset Operation Maintenance Procedure, IT Asset Disposal Procedure, Change Management Policy and Data Back-Up Policy. To mitigate the Risks from Cyber Threats, GRSE have an Operational Replica-based Disaster Recovery Data Centre at Mumbai, to minimise the impact in case of any Natural Disaster.

Certifications

GRSE have several Certifications and Accreditations including the TUV Nord’s Certificate affirming that the Management Systems of the Company for Manufacturing of Ships are as per ISO 14001:2004 and BS-OHSAS 18001-2007 and the Indian Register Quality Systems Certificate affirming that the Management Systems of the 61 Park Unit are as per ISO 9002 – 1994/ EN ISO 9002 – 2014. GRSE have also received ISO 9001:2008 or ISO 9001:2015 accreditation for all the facilities for Quality Management Systems. 

Intellectual Property

GRSE holds patents for Stiffened Steel Deck System for Single Lane Bridges and Manufacture of Double Lane Portable Steel Bridges which were awarded to it in the year 2011 and 2007, respectively. Further, Two (2) more Patent Applications pertaining to Improvised Single Lane Steel Bridge System and Improvised Steel Decking system are under processing for Certification. GRSE have not filed any Application for Registration of Copyrights and/or Trademarks including it’s Corporate Logo.

Corporate Social Responsibility

GRSE as a responsible Corporate Citizen are committed to take up different Developmental Projects, as part of it’s Corporate Social Responsibility (“CSR”) Initiatives towards improving the Quality of lives of the underprivileged sections of the Society and other Stakeholders, primarily around the factories. GRSE’s CSR Strategies are aligned to National Priorities to meet the basic needs of the Local Community.

GRSE’s CSR policy defines the frame work for implementing CSR activities in compliance with Section 135 of the Companies Act, 2013 and rules framed thereunder.

GRSE is working toward improvement of Quality of Life of the Marginalized Segment through various Initiatives like Skill Building, Swachh Bharat Abhiyan, Healthcare, Mainstreaming Differently Abled Persons and Women Empowerment.

The key initiatives of Fiscal 17 are given below:

Education & Skill Development

Vocational Training to One Hundred Seventy-Six (176) unemployed youth of Metiabruz area through IIEST (erstwhile BESU), Shibpur, Kolkata. The students are provided Travel and Tiffin Allowances during Training and Placement Assistance after Training.

Adoption of Women ITI, Kolkata (Gariahat) - Provided Latest Machinery, Equipment, Teaching Aids and Other Infrastructure for Class Room, Laboratory and Workshops of Electronic Mechanic trade and Computer Operator and Programming Assistant (COPA) trade.

Setting up Centre of Excellence at ITI, Tollygunge - GRSE has facilitated in setting up Centre of Excellence in Advanced Welding at Tollygunge Govt. ITI by providing Welding Booths with Advanced Features like Fume Extractor, Submerged Arc Welding Machine, Seam Welding Machine and Magnetic Particle Testing Machine.

Supported three (3) classes of Indian Institute of Cerebral Palsy (IICP), Taratala, having forty-three (43) children with severe multiple impairments. Two (2) classes were for academic training and one (1) class for pre-vocational skill training such as block printing, paper bag making etc.

Swachh Bharat Mission

Construction of Thirty-Nine (39) Toilets in Five (5) Local Schools. GRSE is actively engaged in implementing Swachh Bharat and Swachh Vidhyalaya Mission by constructing Toilets in Local Schools. Thirty-nine (39) toilets were constructed in following five (5) local Government schools located in Metiabruz, Maheshtala and Kidderpore areas of Kolkata during FY 2016-17.

Kankhuly Girls’ High School

Badshah Khan Centenary Girls’ High School

St. Barnabas’ High School

The Kidderpore Academy

Garden Reach Nut Behari Das HS School (Boys’)

GRSE adopted Twenty-Three (23) Anganwadi Centres of Metiabruz in Collaboration with CII Foundation. The Initiative included Construction of Child Friendly Toilets, Water Purifiers, Utensils, Medicines, Educational Materials etc. and also capacity building of the Anganwadi Workers to improve the early Childhood Education and Nutrition for the lactating Mothers and below six (6) years children.

Training is being imparted to 5,300 School Children to develop Sustainable Mechanism and inculcate Good Hygiene and Sanitation Practices as well as maintenance of WASH (Water, Sanitation and Hygiene) facilities in four Local Schools where Toilets have been constructed by GRSE.

Tata Institute of Social Sciences (TISS) has carried out an in-depth study of Metiabruz area (Kolkata) to identify projects and prepare a roadmap for GRSE to implement Swachh Bharat Mission initiatives in Metiabruz.

GRSE have contributed ₹7.50 million towards Swachh Bharat Kosh and of ₹2.50 million towards Clean Ganga Fund.

Health Care

Five Hundred (500) Cataract Surgeries were conducted for the Poor and Needy people of Metiabruz, Kolkata. Pre-operative check-up with Investigations and Post-operative Check-up with Medicines, Consumables were provided for upto six (6) weeks from the date of Surgery. Spectacles were also provided after proper Binocular Refractive Correction. 

Support has been extended to Tata Medical Centre for procurement of Three (3) Equipment Critical for Cancer Diagnosis and Treatment.

Various Appliances such as Tri-Cycles, Wheel Chairs, Axilla Crutch, Elbow Crutch, Smart Cane, Braille Kit, ADL Kit and Cellphones for Leprosy affected persons etc. were distributed to 912 Beneficiaries in Association with ALIMCO.

Monthly Health Check-up Camps / Clinics are held in the 61 Park Unit on the last Saturday of every month in which on an average, 190 – 200 Patients are Examined and provided Medicines.

 Blood Donation Camp was conducted in which Employees donated Blood for Patients suffering from Thalassaemia, Haemophilia or the victims of Road Accident.

The completed Projects/ Activities of –Fiscal 2015 and Fiscal 2016 were evaluated by IISWBM in order to measure the degree of Success or Failure of the Project.

In Fiscal 2017, GRSE incurred an expense of ₹45.49 million for the aforesaid initiatives.