Tata announces that it will open its own shipping company, a move that could boost shipping industry
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Tata’s shipping technology business, which it acquired last year for $1.9 billion, is going public.
The Tata Group announced Wednesday that it is announcing that it has purchased Maersk, a maritime logistics company that has been in private ownership since 2011.
Maersky, which was founded in 2004, operates in the maritime space.
Maerks fleet includes a variety of ships, including the Tata-operated Triton, a ship-to-shore cargo ship.
Maerrks founder and CEO Nita Goel said in a statement that Tata will become Maerskt, or Tata-Maerskt Shipping.
Tata, which also operates in logistics, will focus on container and logistics and has been working to improve its shipyard.
Tata will focus primarily on shipping the world’s biggest containers.
“This transaction will be a major step in our strategy to drive sustainable growth and profitability of Tata and Maersko and Tata and Tata’s global network of suppliers,” said Tata chairman Arvind Singhal.
Maera’s business is more of a logistics business than a shipbuilding company, and Tata will be the first global shipbuilding firm to be bought by a Tata company.
Tata already has a significant presence in the shipping space, as the company is the world leader in shipping containers and has invested in the production of container ships.
Maerkas shipping fleet includes two cargo ships, the Tata and the Tata Express.
Tata said the Maerkis ships would be used to ship containers and other large products around the world.
Maering is based in Germany.
Tata’s announcement comes as Tata’s shipyard, Tata Ports Ltd., is being closed for good.
Tata Ports, based in Mumbai, is a unit of Tata Group, which is controlled by its chief executive officer, Nandan Nilekani.
Maeroi, which Tata owns, said in February that it had agreed to sell Maerska to Tata for $500 million, a valuation it expects to be more than double its current market value.
Tata has been trying to reduce its dependence on shipping by shifting its focus to other parts of the global shipping industry.
Maierks fleet is expected to include more than 2,000 ships.
Tata and Maruti Suzuki Group India Ltd., the worlds largest motorcycle manufacturer, said earlier this month that it was launching a new company, Maerkes, to create a logistics service to supply cars to Tata Group and Marumos, a group of Indian motorcycle manufacturers.
Tata Group said the company will focus more on its supply chain and logistics.
Tata Motors India Pvt.
Ltd., India’s largest carmaker, said it would merge with Tata Motors in the coming months.
The company also said it will establish a joint venture with India’s biggest private bank, Bofors, to invest in the logistics business.
Tata Motor India said the move will allow the company to focus on the logistics and manufacturing business.
Tata’s shipping technology business, which it acquired last year for $1.9 billion, is going public.The Tata Group announced Wednesday that…
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