MoU Signed for Proposed Ship Recycling and Ship Care Joint Venture in Tamil Nadu
The company has signed a Memorandum of Understanding with Elegant Exit Company BV (Netherlands) and ALAR to explore a joint venture for ethical ship recycling and ship care in India.
- JV Partners
- Elegant Exit Company BV (Netherlands) and ALAR
- JV Location
- Tamil Nadu, with land to be identified in or near Tuticorin Port
- Business Focus
- Ethical ship recycling and ship care
- Regulatory Framework
- Hong Kong International Convention, ILO standards and MARPOL requirements
- Stage
- Memorandum of Understanding signed; JV, investment and operations subject to due diligence, negotiations, definitive agreements and…
What was signed
Kothari Industrial Corporation Limited has entered into a Memorandum of Understanding with Elegant Exit Company BV, Netherlands and ALAR to explore cooperation in the business of ethical ship recycling and ship care, described as a first in India, in line with applicable Indian regulations and international standards.
Key terms
- A Joint Venture Company is proposed to be formed in the State of Tamil Nadu for ship recycling and ship care.
- Activities are contemplated in accordance with the Hong Kong International Convention for safe and environmentally sound recycling of ships, relevant ILO standards, MARPOL requirements and accepted environmental, health and safety practices.
- The company will facilitate and coordinate legal, regulatory and administrative requirements for identifying and securing suitable land within or near Tuticorin Port.
- The parties intend to work towards preparing and finalising a Joint Venture Agreement.
What it is not
The update states the MoU records an understanding for exploring the proposed business opportunity and does not by itself constitute an agreement for the proposed financing or completion of the transaction.
Conditions ahead
The proposed JV, investment, commercial arrangements and commencement of operations will be subject to completion of necessary due diligence, negotiations, definitive agreements, regulatory approvals and other applicable conditions. The company has said it will make further disclosures as the proposed transaction progresses and becomes crystallised.
How investors may read it
This signals a possible entry into a new business line for the company, but it is at an exploratory stage with commercial terms, investment size and timelines still to be settled through definitive agreements.
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