Ocean Blue in talks with 20 PE firms to raise long-term funds

Luxury boat manufacturer - Ocean Blue Boating is in talks with nearly 20 Private Equity firms to raise funds, which will enable the firm to strengthen its foothold in the domestic market, a top company official said.

"We are in talks with at least 20 Private Equity firms. We will raise the same in tranches over the next five years. The first tranche is expected to be completed by end of this year," Blue Ocean Boating's chief executive officer, Malav Shroff told PTI here.

The company plans to raise the amount in different tranches over the next five years beginning this year, Shroff said.

While Shroff would not disclose the amount company plans to raise, it is understood that the amount could be anywhere between Rs200-Rs250 crore.

The funds raised will be utilised to fuel its ongoing joint venture operations in India, which include a JV with Mahindra and Mahindra group to build high-potential fibreglass powerboats, Shroff said.

The JV--Mahindra Ocean Blue -- has set up a boat manufacturing facility in Goa and plans to build around 100 boats by the end of FY 11, he said. The boats, which will be branded as Mahindra Odyssea, would be priced in the range of Rs16 lakh - Rs60 lakh, Shroff said.

The company decided to scale up investments in the luxury yatch segment taking into account the increasing demand in the sector, he said.

"We want to expand our business to cater to the fast growing demand for luxury yachts. We have started production at our Goa facility four months back and expect to build 100 boats by the end of next fiscal," Shroff said.

As part of expanding its business in the global space, the company has also partnered with international sailing yachts brand 'Nautor's Swan', he said.

The partnership will enable Ocean Blue to launch various models of exquisitely crafted yachts on the Indian seas in the near future, Shroff said, adding, it expects to launch atleast 10 boats here over the next three years.

Finland-based Nautor's Swan is a leading player in the segment and has so far built over 4000 yachts over the last 40 years, he said.

"Given that there is a huge demand in the Indian market, we have targeted 5000 potential buyers in the country. The yachts will be priced at Rs 3-crore and above," Shroff said.
       
Ocean Blue expects to open its first Marina in Kochi, Kerala in the next two months. According to Shroff, Indian leisure boating industry will grow to Rs5,000 crore in the next decade.