Knowledge Marine & Engineering Works Secures ₹96 Crore Tug Contract from V.O. Chidambaranar Port

On December 6, 2024, Knowledge Marine & Engineering Works Ltd. (KMEW), listed on both BSE and NSE (Scrip Code: 543273), announced that it has been awarded a major work order from V.O. Chidambaranar Port for the supply, manning, operation, and maintenance of a highly maneuverable 60-ton Bollard Pull Azimuth Stern Drive (ASD) Tug. This contract, valued at ₹96.25 crore, is for a period of seven years and is a significant milestone in KMEW's expansion in the maritime sector.

1. Overview of the Contract

• Client: V.O. Chidambaranar Port, located in southern India.
• Contract Scope: The contract entails the supply, manning, operation, and maintenance of one 60-ton bollard pull ASD tug.
• Value: ₹96.25 crore (inclusive of taxes).
• Duration: The contract will last for seven years.
• Purpose: The tug will be used for controlling vessels in confined port spaces, particularly for towing, pulling, or pushing capsize vessels weighing 80,000 tons and above, ensuring safe berthing and unberthing operations at the port.

2. Strategic Significance of the Order

This award is notable for several reasons:

• First-Ever 60-Ton Bollard Pull ASD Tug Contract: This marks KMEW's maiden venture into providing 60-ton bollard pull ASD tugs, a step up in the company's marine capabilities.
• Enhanced Fleet Capability: The inclusion of a high-capacity tug significantly enhances KMEW’s ability to cater to larger and more complex vessel handling requirements.
• Expansion in Southern India: With this contract, KMEW strengthens its presence in the southern region of India, following its earlier successful contract for a high-speed patrol boat with V.O. Chidambaranar Port.

3. Key Terms of the Contract

• Supply and Manning: The contract covers the supply of the ASD tug, which will be designed and built to advanced technical standards, and its manning, operation, and maintenance for a seven-year period.
• Domestic Award: The order was awarded by a domestic entity, V.O. Chidambaranar Port, a key player in India’s maritime infrastructure.
• Contract Size: The contract value stands at ₹96.24 crore (approximately USD 12 million), inclusive of taxes.
• Nature of Work: The work primarily focuses on the supply of highly maneuverable ASD tugs used for towage operations at the port.

4. About Knowledge Marine & Engineering Works Ltd.

KMEW, established in 2015, has grown to become a key player in marine engineering, shipbuilding, and marine contracting services. The company provides various maritime solutions, including:

• Shipbuilding and repair services.
• Dredging services at multiple Indian ports.
• Hydrographic and magnetometer surveys.
• Refits and repairs of naval and merchant ships.

The company has developed a multi-million order book from reputed clients such as Ministry of External Affairs, Visakhapatnam Port Trust, Dredging Corporation of India, and Paradip Port Trust, among others.

5. Future Outlook and Expansion

With this contract, KMEW strengthens its position as a reliable provider of maritime services and port ancillary operations. The award of this contract reflects KMEW’s growing expertise in managing high-capacity maritime assets and its readiness to serve the expanding demands of the Indian maritime sector.

CEO Sujay Kewalramani expressed enthusiasm about the contract, noting, "This achievement marks a key milestone in our growth and capacity expansion. We are now poised to meet the rising demand for high-capacity tugs in ports across India."

The company’s successful expansion into the 60-ton ASD tug segment is expected to open new opportunities for future contracts, particularly with larger ports and private sector players, ensuring continued growth in this highly specialized segment.

6. Press Release and Attachments

KMEW’s press release, detailing the contract, and additional information required under SEBI regulations, including the specifics of the contract terms, are attached in the official filing to the BSE and NSE.

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