BUSINESS OVERVIEW
Knowledge Marine & Engineering Works Limited ("KMEW" or "the Company") is an India based company specializes in dredging and carries out Capital and Maintenance dredging works at various ports, rivers, lakes and fishing harbours.
KMEW also specializes in owning and chartering Port Ancillary Crafts such as Pilot boats, Patrol boats, Survey boats, Mooring boats and Tugs. Our clientele includes Inland Waterways Authority of India, Ministry of External Affairs, Dredging Corporation Of India, Shyama Prasad Port Authority (Earlier Kolkata Port Trust), Visakhapatnam Port Authority, Kandla Port, Paradip Port Authority, V.O. Chidambaranar Port Authority, New Mangalore Port Authority and Mumbai Port Authority at domestic front and Myanmma Port Authority and Bahrain at International front.
As on the date of financial year closing, we own and operate 40 Fleets out of which 15 are Dredgers and 25 Port Ancillary Crafts including and not limited to Tugs, Pilot boats, Survey Boats, Fast speed patrol boats required for ISPS compliance, Mooring Boats and Multi-cat work boats.
KMEWs subsidiaries and Associate Company includes Knowledge Marine Co. W.L.L., Bahrain, Knowledge Dredging Co. W.L.L., Bahrain, Indian Ports Dredging Private Limited, Knowledge Infra Ports Private Limited and KMEW Offshore Private Limited.
DREDGING INDUSTRY STRUCTURE Global Dredging Market
(Source: CARE Report)
Dredging and Marine Engineering Services play a crucial role in the development and maintenance of waterway infrastructure. Dredging involves the removal of sediment, debris, and other materials from the bottom of lakes, rivers, harbours, and other water bodies to ensure they remain navigable and functional. This process is vital to prevent sedimentation, where natural processes like the washing of sand and silt gradually fill channels and harbours, obstructing safe passage for ships and boats. The primary goal of dredging is to maintain or increase the depth of navigation channels, anchorage areas, and berths. As global trade relies heavily on maritime transport, dredging ensures that vesselsparticularly large shipscan navigate safely without running aground. The increasing size of modern vessels further underscores the need for regular dredging to accommodate these massive ships, which are essential for transporting goods globally. Therefore, dredging directly impacts a nations economy by enabling efficient trade and transportation.
Marine engineering, on the other hand, encompasses the operation, maintenance, and monitoring of mechanical systems aboard marine vessels, such as ships, boats, and submarines. It integrates various engineering disciplines including mechanical, electrical, and electronic engineering, as well as computer science. Marine engineers ensure the functionality and safety of vessel systems, from propulsion to navigation, contributing to the reliability and efficiency of marine operations. Together, dredging and marine engineering services are fundamental to maintaining the integrity of waterway infrastructure and supporting the maritime industrys pivotal role in global commerce.
Global Market Size of Dredging and Marine Engineering Services
The global market for dredging and marine engineering services has been growing at a CAGR of 8.5% from CY19 to CY23 reaching market size of USD 22.3 billion by CY23. The market size for CY24 has been estimated at USD 23.1 billion and is expected to further grow at a CAGR of 3.5% from CY24 to CY29, reaching market size of USD 27.4 billion by CY29. The growth of the Dredging and Marine Engineering Services market is primarily driven by the continuous expansion of global trade and the increasing reliance on maritime transportation. As countries invest heavily in port and waterway development to accommodate larger ships, the demand for dredging services has surged to ensure safe navigation and smooth trade flow. The rising need for deeper channels and expanded infrastructure to support growing vessel sizes further fuels this demand. Additionally, the market is being bolstered by the growing focus on environmentally sustainable and technologically advanced dredging solutions, which present new growth opportunities. The construction and maintenance of ports, alongside the need for sedimentation management, are key factors propelling market growth. As urbanization and global trade continue to rise, the need for efficient and well-maintained marine infrastructure will drive sustained growth in the industry.
Dredging Market Trends & Analysis
Increasing sea-borne trade is expected to propel the growth of the dredging market going forward. Seaborne trade refers to the transportation of goods that takes place through accessible water routes and ports. Dredging helps sea-borne trade by expanding existing ports, maintaining existing waterways, and building new ports and waterways, increasing water-borne trade is driving the growth of the dredging market. Product innovations have emerged as a key trend gaining popularity in the dredging market. Major companies operating in the dredging sector are focused on developing new innovative products to strengthen their position in the market. The dredging market includes revenues earned by entities through dredging services such as capital dredging, maintenance dredging, and inland water dredging. The global economy witnessed mixed trends during the fiscal year.
Many maritime nations still are government-owned and operated dredging fleets. However, the commercial or privately-owned dredging companies are expanding fast these days. Dredging corporations are increasingly acting as the principal contractors for large-scale dredging projects and are in charge of engaging subcontractors to do particular tasks related to the overall construction.
Innovations in dredging vessels and other machinery are required for a highly specialized business. Moreover, every harbor dredging project includes consideration of the environment, and pre-, adaptive, and post-monitoring have developed into industry norms.
Applications of Dredging and Marine Engineering Services
Dredging and marine engineering services are widely applied across various industries, with governments, oil and gas companies, and mining industries being the key drivers. Governments are the leading players in dredging and marine engineering, driving most dredging projects, particularly those related to infrastructure development. They invest in dredging to improve navigational channels, expand ports, build coastal defences, and manage flood risks. Such projects are vital for enhancing trade efficiency, ensuring environmental protection, and supporting regional development. In the Oil and Gas industry, dredging is essential for creating and maintaining access to offshore drilling sites, laying pipelines, and constructing offshore platforms. Marine engineering services are also involved in deepening channels for shipping oil and gas supplies. Dredging ensures that these operations can occur in deeper waters and that logistics routes remain open and accessible for large vessels. Dredging plays a crucial role in the Mining industry, especially in mineral extraction from sea beds or riverbeds. Marine engineering services are employed to clear sediment and create access to mineral-rich areas, enabling the extraction of valuable resources. It is particularly relevant in operations like placer mining, where materials such as gold or precious metals are collected from the water.
Indian Dredging Market
Source: CARE Report
The Indian maritime sector is witnessing rapid expansion, which, in turn, is boosting the need for dredging. Dredging has become an inevitable process for ports to sustain business, the economy and the environment. The Indian maritime sector offers a plethora of opportunities for dredging. The Indian market for dredging and marine engineering services has been growing at a CAGR of 8.1% from CY19 to CY23 reaching market size of USD 615 million by CY23. The market size for CY24 has been estimated at USD 655 million and is expected to further grow at a CAGR of 8.4% from CY24 to CY29, reaching market size of USD 982 million by CY29. The growth of the dredging and marine engineering services market in India is driven by rapid industrialization and the expansion of port infrastructure to support increasing trade volumes. As a key player in global shipping, India is investing heavily in dredging activities to improve its ports, enhance coastal defences, and facilitate land reclamation projects. Government initiatives aimed at boosting maritime trade and improving logistical capabilities further propel demand for dredging services. The growing economy and rising trade activities are expected to continue driving the need for dredging to maintain and develop Indias critical port and harbour infrastructure.
Sagarmala Projects:
There are 839 projects worth investment of ~INR 5.79 Lakh Cr. for implementation under the Sagarmala Programme by 2035, out of which, 272 projects worth ~INR 1.41 Lakh Cr. have been completed and 214 projects worth ~INR 1.62 Lakh Cr. are under implementation. In addition to the above, 353 projects worth ~INR 2.75 Lakh Cr. are under various stages of development. These projects are being implemented by relevant central ministries, state governments and major ports. Regular monitoring of the projects and interaction with project proponents, various line ministries and implementing agencies is being done with MIS tool. These projects are categorized into five pillars Port Modernization, Port Connectivity, Port-Led Industrialization, Coastal Community Development and Coastal Shipping and Inland Water Transport. Under holistic development of coastal districts, a total of 567 projects with an estimated cost of around ~INR 58,000 Cr. have been identified.
Governments hold the largest share, by application, in the market size of the dredging and marine engineering services industry. This share is expected to rise from an estimated 42.5% in CY24 to 43.1% in CY29. Governments have long dominated the dredging market due to their substantial investments in infrastructure projects. Historically, their initiatives have been focused on maintaining waterways, regulating water levels, and developing naval and military ports essential for national security and trade. The growing demand for new and upgraded naval bases and port facilities has reinforced the government segments dominance in the global dredging market. Currently, governments continue to invest heavily in dredging activities to foster economic growth, infrastructure development, and environmental sustainability. This trend is likely to accelerate in the future as emerging economies place greater emphasis on the development and upkeep of naval ports and waterways. With the constant evolution of global political and economic factors, government policies and investments will remain critical to the expansion and development of the dredging sector.
Approximate siltation at Indian ports |
|
Port/Client |
Approximate siltation (mcum) |
Major ports |
|
Syama Prasad Mookerjee Port Trust | 11.10 |
Paradip Port Trust (including sand trap) | 7.00 |
Visakhapatnam Port Trust | 0.28 |
Kamarajar Port Limited (Ennore) | 0.70 |
Cochin Port Trust | 22.20 |
New Mangalore Port Trust | 6.50 |
Mormugao Port Trust | 2.20 |
Mumbai Port Trust | 3.33 |
Jawaharlal nehru Port Trust | 10.00 |
Deendayal Port Trust | 14.95 |
Chennai Port Trust | 0.2 |
Subtotal (major ports) | 78.46 |
Other |
|
Director General Naval Projects, Visakhapa- tnam |
0.40 |
South Naval Command, Kochi | 1.80 |
Western Naval Command, Mumbai | 1.60 |
Cochin Shipyard Limited & KLPL | 2.00 |
Subtotal (Other): | 5.80 |
Grand total | 84.26 |
Source: MoPSW |
The Dredging Guidelines issued by MoPSW in June 2021 are based on the scientific mode of "working dredging rate" for minimising associated costs and include detailed technical investigation for dredging projects. Survey and geotechnical investigation are two crucial aspects of a dredging project. Detailed investigations are prerequisites for equipment planning, rate determination and avoiding conflicts between the contractor and the port authority. Besides, these guidelines highlight the importance of reusing dredged material. In fact, recycling and reusing dredging material has been a key focus area for the MoPSW. The utilisation of these materials results in saving a significant amount of resources, thereby contributing to environmental conservation.
The 12 major ports under the administrative control of the MoPSW undertake dredging activity for the removal of dredged material to maintain navigable depth for vessel movement. The material comprises a mixture of silt, clay, sand, gravel and other impurities. Typica lly, this material is either disposed of to the deep sea or used for reclamation purposes, if suitable.
The MoPSW guidelines call for major ports and the Inland Waterways Authority of India to incorporate suitable provisions in dredging contracts for promoting the reuse/recycling of generated dredged material. This also rationalises the cost of dredging through the monetisation of the dredged material, resulting in the creation of "waste to wealth". Moreover, the utilisation of these materials contributes to resource sustainability, thereby aiding environmental conservation efforts through the recycling of waste and the conservation of fresh resources.
Several major ports are already utilising dredged soil for beneficial purposes. For instance, Cochin Port is incorporating it into construction activities (approximately 30 to 40 mcum). Visakhapatnam Port and Jawaharlal Nehru Port Authority use dredged soil for beach nourishment while the V.O. Chidambaranar Port Autho rity utilises it for reclamation purposes. Paradip Port is also utilising dredged soil for land reclamation for Numligarh Refinery Limited and at a storage terminal complex at Paradip.
PORT ANCILLARY CRAFTS
Owning, Operating, and Chartering of Port Ancillary Crafts involves the ownership, operation, and leasing of auxiliary vessels that support port operations. These vessels are essential for ensuring the smooth functioning of maritime activities, such as assisting with the entry and exit of large ships, facilitating cargo loading and unloading, and performing maritime rescue operations. The fleet of port auxiliary vessels typically includes Pilot Boats, Mooring Boats, Service Boats, Tugboats, and Fast Speed Patrol Boats for security and patrolling services. These vessels play a crucial role in maintaining safety and efficiency in port operations.
In India, there are approximately 13 major ports and 217 non-major ports, each operating its own fleet of auxiliary vessels to cater to its specific requirements. The Indian Port Ancillary Crafts Market was valued at 135.34 million USD in 2024 and is projected to grow significantly in the coming years. The market growth is driven by strong economic activity and the Indian governments ongoing focus on enhancing maritime infrastructure.
The development of the port auxiliary vessel market in India is primarily fuelled by the increasing demand for advanced, efficient, and specialized vessels that can support modern port operations. These include not only traditional vessels like tugboats and pilot boats, but also newer vessels designed for environmental protection, safety, and firefighting. The market is also benefiting from innovations in ship design and propulsion systems, with an increasing focus on sustainability and reducing the carbon footprint of maritime operations. As ports evolve, the need for such advanced and efficient auxiliary vessels becomes even more critical to ensuring smooth and safe maritime trade.
Global Outlook
Globally, the port ancillary crafts market is also experiencing growth due to increasing global trade and the expansion of port capacities to handle larger volumes of cargo. The Asia-Pacific region, particularly China and India, is leading this growth due to their rapid industrialization and urbanization, which necessitate enhanced port infrastructure and operations.
The global port ancillary crafts market is driven by the need for advanced and efficient service vessels that can support the operations of modern ports. This includes not only tugs and pilot boats but also specialized crafts for environmental protection, security, and firefighting. Innovations in vessel design and propulsion systems are also contributing to the market growth, with a focus on sustainability and reducing the carbon footprint of maritime operations (PwC) .
Globally, port ancillary crafts are vital to the smooth functioning of maritime trade. Major ports around the world rely on these crafts for various tasks.
India Outlook
In India, the port ancillary crafts market is poised for significant growth due to robust economic activities and governmental focus on improving maritime infrastructure. This growth is partly driven by the governments focus on capital spending and infrastructure development, which includes substantial investments in ports and related facilities (Goldman Sachs).
The Indian government has been actively promoting initiatives like the Sagarmala Programme, which aims to enhance the performance of the countrys logistics sector by unlocking the potential of waterways and the coastline. This includes developing new ports, improving existing ones, and ensuring the availability of modern port ancillary crafts like tugs, dredgers, pilot boats, and other service vessels necessary for efficient port operations.
The Owning, Operating, and Chartering of Port Ancillary Crafts Market in India is projected to grow at a CAGR of 6.66% from 2025-29, driven by key factors such as advancements in vessel technology, government investments in port infrastructure, and the rising need for specialized vessels. Technological innovations in vessel design are improving efficiency, safety, and operational costs, while government initiatives like the Sagarmala Project are modernizing port facilities and increasing demand for advanced support vessels. A notable driver is the growth of the tugboat segment, reflecting the need for powerful and versatile vessels to handle larger ships and more complex port operations. This indicates a thriving maritime industry in India and a continued expansion of the ancillary crafts market.
Types of ancillary crafts
Pilot Boats are specialized vessels designed to transport maritime pilots to and from ships. These boats are characterized by high visibility, durable construction, and fast manoeuvrability, enabling them to navigate efficiently in various sea conditions. They play a crucial role in maritime operations by ensuring that pilots can safely board and disembark from large vessels, facilitating smooth navigation through ports and harbours.
Fast Speed Patrol Boats are essential for security and patrolling services. These boats are equipped with high-speed capabilities, advanced navigation systems, and often weaponry for defence purposes. They ensure the safety of maritime boundaries and provide rapid response to potential threats or emergencies, making them a vital component of maritime security.
Mooring Boats assist in mooring and unmooring ships, a crucial task in busy ports. These boats are equipped with winches and towing gear, and their strong hulls allow them to handle the heavy loads involved in mooring operations. They ensure that ships can be securely anchored and released, facilitating the smooth flow of maritime traffic.
Service Boats provide various support services to ships, such as delivering supplies, performing maintenance, and assisting in other operational tasks. These boats are versatile and often equipped with storage space for supplies and equipment like cranes or lifting gear, enabling them to handle a wide range of support activities efficiently.
Tugboats are indispensable in docking, undocking, and towing larger vessels. The role of tugboats is particularly significant in the India Port Ancillary Crafts Market. Tugboats are widely used for towing large ships entering and leaving ports, helping them navigate difficult docking manoeuvres and ensuring their safe berthing. High-powered tugboats are also utilized for offshore towing operations. Their exceptional manoeuvrability, equipped with adjustable pitch propellers, makes them highly effective for managing complex operations. The power of their main engine defines their efficiency, and they are key to improving maritime traffic safety, operational efficiency, emergency response, and overall economic development in the maritime sector.
As per the latest data, India has around 12 major ports and approximately 200 non-major ports. Each of these ports operates a fleet of ancillary crafts tailored to its specific needs.
PERFORMANCE OVERVIEW
Operational Highlights
During the year under review, company has achieved various milestones. Few of them are as under:-
1. Expansion of Fleet:-
During the year, we achieved a significant operational milestone by scaling up our vessel size from 16 to 40, more than doubling our capacity. This strategic upgrade marks a bold step towards enhancing our operational efficiency, expanding our production capabilities, and strengthening our competitive edge.
2. Independent Order Book and Turnover:
This year marks special for KMEW, as the Current turnover of Rs. 200+ Crores is being carried out the KMEW, independently and without any collaboration or joint venture agreement with other outside parties.
3. Extending Our Maritime Footprint:
KMEW has significantly expanded its operational footprint by establishing a presence in several key locations across India, including Paradip, Tuticorin, New Mangalore, Mumbai, Patna, Jharkhand, and Assam.
Our growing presence across both port cities and inland regions underscores KMEWs strength of delivering value at scale and hard work and dedication towards nation building.
4. Order Book driven Year: - FY 2024-25 has Order Book driven year for the KMEW. The Company has won 11 orders during the year amounting to Rs. 441.26 Crores from various major ports, IWAI and DCI.
5. Myanmar International Contract: KMEW has secured its repeat international contract from the Myanmmar Port for the work of maintenance dredging of Yangon River Channel for a period of 1 year at a contract value of 4.85 million USD. This is repeat independent international contract of the Company with Myanmma Port Authority is more than double the previous order of USD 2.20 million received in October, 2023. This increase in order value highlights KMEWs ability to maximize its profits.
6. Customer Base Expansion:- On the ancillary crafts business, KMEW has successfully expanded its customer base by adding the contract from Mumbai Port and Paradip Port. KMEW has secured an order from the Mumbai Port Trust for the hire of two dock tugs valued at Rs. 34.49 crores for a period of seven years while at Paradip Port KMEW has secured a contract value of Rs. 5 Crores for the supply of 20 knots speed patrol boat for a period of 5 years.
7. Successful Execution: - KMEW has also successfully executed various projects during the year. First one being rock dredging project at Mangrol Fishing Harbour for Rs. 78 crores by completing rock dredging quantity of 1.25 lakh cubic metres such completion enables KMEW to participate singly in the further rock dredging contracts. Secondly, execution of first year capital and maintenance dredging at Sittwe Port, Myanmar at an amount of Rs. 248 crores with an executed dredging quantity of 16.73 Million Cubic Meters enables KMEW to get qualified to bid singly for the dredging contracts amounting to INR 300 crores. Further Company has successfully executed the first international contract of 2.20 Million USD with Myanmar Port Authority to carry out dredging at Yangon River.
Financial Highlights
The Consolidated revenue of your Company stood at Rs. 20,070.67. Lakhs for FY 2024-25 as against Rs. 16,358.31 lakhs in the FY 2023-24. The revenue increased by 23%. The increase in the revenue is due to receipt of new orders and successful execution of orders in hand by KMEW team within stipulated timeline. The Companys PAT stood at Rs. 4981.32 Lakhs in FY 2024-25 as against Rs. 3057.82 Lakhs in FY 2023-24. The PAT Margins grew by 63% on Y-o-Y basis. This rise in the Profit margins is mainly due to independently execution of works by the Company without reliance on joint venture partnerships or sub-contracting arrangements, dedicated in-house team for crew manning and operational functions and several other factors.
(Amount in Rs. In Lakhs)
Financial Results |
Standalone for the Year Ended 31st March |
Consolidated for the Year Ended 31st March |
||
2024-25 | 2023-24 | 2024-25 | 2023-24 | |
Turnover (Rs. in Lakhs) | 14,922.07 | 13,928.31 | 20,070.67 | 16,358.31 |
PAT (Rs. in Lakhs) | 3,497.51 | 2,488.55 | 4,960.64 | 3,043.80 |
EPS | 32.39 | 23.12 | 46.12 | 28.31 |
Key Financial Ratios (On Standalone basis)
Particulars |
Financial Year 2024-25 | Financial Year 2023-24 | % Change between Current FY 2023-24 and 2024-25 |
Debtors Turnover Ratio | 3.95 | 3.28 | (20.43)% |
Interest Coverage Ratio | 8.17 | 11.57 | 29.35% |
Current Ratio | 1.62 | 3.00 | 45.94% |
Debt-equity Ratio | 0.48 | 0.06 | (667.11)% |
Operating Profit Margin Ratio | 0.50 | 0.36 | (38.35)% |
Net Profit Margin Ratio | 23.44 | 17.93 | (30.74)% |
Return on Net worth | 0.18 | 0.16 | (14.77)% |
Notes: a. The above ratios were based on Consolidated Financial Statements of the Company. b. Definitions of ratios:
1. Debtors turnover: The revenue from operations divided by the average accounts receivable.
2. Interest coverage ratio: earnings available for debt service (PAT + Interest cost +Depreciation) to interest cost.
3. Current ratio: Current assets by current liabilities.
4. Debt-equity ratio: Total debt by shareholders equity.
5. Operating profit margin: EBITDA by Revenue from Operations.
6. Net profit margin: Profit after tax by Revenue from Operations.
7. Return on average net worth: Profit for the year by average net worth for the year.
HUMAN RESOURCE DEVELOPMENT
Your Company treats its "human resources" as one of its most important assets. Your Company continuously invests in retention and development of talent on an ongoing basis. A number of programs that provide focused people attention are currently underway. Your Companys thrust is on the promotion of talent internally through job rotation and job enlargement.
The Company articulates the culture of the entire workforce both onshore and offshore employee as a one Team. The Company sets out the theme of "One Team One Plan One Goal" which resulted in cutting edge over competition. Further, KMEWs team lead by youngsters (Naval Architect, Marine Engineer, Mechanical Engineer, Company Secretary, Lawyer and Chartered Accountant) running the show on the ground.
The Company aim to foster with every member of the workforce to generate ideas from all levels, emphasize on continuous improvement, and implement valuable inputs across the Company. This bottom-up approach making KMEW more resilient.
This approach also helps in creating more opportunities and strengthen uniform implementation of the ideas and Innovation practices across the organization.
CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT
At KMEW, we recognize that sustainable business growth goes hand in hand with social and environmental responsibility. Our Corporate Social Responsibility (CSR) initiatives are integral to our long-term strategy and reflect our commitment to creating a positive impact in the communities where we operate.
In line with our commitment to building healthier and more educated communities, KMEW contributed INR 84.52 Lakhs in FY 202425 towards initiatives focused on education and preventive healthcare, in collaboration with the Anvi Medical and Educational Foundation.
This marks a significant increase from INR 65.20 Lakhs contributed in FY 202324 for similar initiatives, reflecting our continued and growing dedication to driving meaningful change where its needed most.
These efforts underscore our commitment to improving access to quality healthcare and education for underprivileged communitiesan investment in the social fabric that supports inclusive growth.
Growth Drivers Amrit Kaal Vision 2047
The Amrit Kaal Vision 2047 Action Points have been defined across 11 key themes which are provided as below. A total of 300+ initiatives along with their action plan have been identified across these themes.
Maritime India Vision 2030
Maritime India Vision (MIV) 2023 - taking India to Global Maritime Leadership
? The countrys maritime sector plays a crucial role in its overall trade and growth, with 95% of the countrys trade volume and 65% of the trade value being undertaken through maritime transport.
? with the objective of propelling India to the forefront of the Global Maritime Sector, Ministry of ports, Shipping and Waterways has formulated Maritime India Vision 2030 (MIV 2030), a blueprint to ensure coordinated and accelerated growth of Indias maritime sector.
? MIV 2030 identifies over 150 initiatives across 10 themes covering all the facets of the Indian maritime sector and is a comprehensive effort to define and meet national maritime objectives.
Category |
Develop Best-in-class Port Infrastructure KPI Metric | Current | Target (2030) |
World class Mega Ports |
No. of Major ports with 300 MTPA+ cargo handling capacity | - | 3 ports |
No. of ports with 18m+ draft availability to handle main line calls | 5 | 9 ports | |
Transshipment hub |
% of Indian cargo transshipment handled by Indian ports | 25% | >75% |
Infrastructure modernization |
% of cargo handled by ppp/ Captive/ O&M parties across Major Ports | 51% | >85% |
Sagarmala Project Boost to Dredging Activity
? India has 7,517 Km long coastline with 14,500 Km of potentially navigable waterways and strategic location on key international maritime trade routes.
? To promote port-led development in the country, the government has introduced Sagarmala Programme.
? 802 projects totaling Rs. 5.54 Lakh Crore worth of invesment have been identified to be implemented under the Programme by 2035.
Project Theme |
Total | Completed | Under Implementation | |||
No. of Project | Project Cost (Rs. Cr.) | No. of Project | Project Cost (Rs. Cr.) | No. of Project | Project Cost (Rs. Cr.) | |
Port Modernization | 241 | 2,60,419 | 68 | 27,019 | 56 | 35,471 |
Port Connectivity Enhancement |
208 | 1,36,331 | 35 | 19,489 | 69 | 84,410 |
Port Led Industrialization | 33 | 1,19,846 | 2 | 45,865 | 21 | 72,706 |
Coastal Community Development |
76 | 8,434 | 16 | 1,423 | 15 | 1,373 |
Coastal Shipping & IWT | 244 | 28,918 | 24 | 993 | 50 | 15,869 |
Total |
802 | 5,53,948 | 185 | 94,789 | 201 | 2,09,829 |
Inter Linking of Rivers Boost to Dredging Activity
? The Indian Rivers Inter-link is a large-scale civil engineering project that aims to effectively manage water resources in Indian by linking Indian rivers by a network of reservoirs and canals to:
- Enhance irrigation and groundwater recharge,
- reduce persistent floods in some parts and water shortages in other parts of India.
? under the National Perspective Plan (NPP), the National Water Development Agency (NWDA) has identified 30 Links (16 under Peninsular Component & 14 under Himalayan Component) for preparation of Feasibility Reports (FRs).
? Estimated cost for all Inter Linking of Rivers projects is Rs. 8.44 lakh crore.
? Ken-Betwa Link project is the first ILR project under NPP, that is under implementation.
Inland Water Transport Boost to Dredging Activity
? The Inland Water Transport (IWT) mode is widely recognized as a fuel efficient, environment friendly and cost-effective mode.
? India has total of 111 National Waterways with total length of 20,375 Kms spread across 24 atates. 23 National Waterways with 5,200 Km have been identified with potential for mechanized crafts and 17 are currently operational.
? Key focus areas are for development of National Waterways are
- Navigation channel with adequate depth and width for movement of reasonable size of inland vessels.
- Navigation aids for day and night nagigation.
- Terminals to provide berthing of vessels, loading and unloading of cargo/passengers and road/rail connectivity
Various Government initiates for infrastructure development
? Jal Marg Vikas Project for capacity augmentation.
? Arth Ganga and Arth Brahmaputra for holistic and sustainable development leveraging NW2 for freight and passenger movement.
? Inland Vessels Bill, Land Use Policy for IWs.
? Dredging Policy for IWs, and promoting private participation in terminal operations and maintenance.
Traffic on National Waterways (in million tonne)
GREEN SHIPPING
In April 2018, IMO adopted a strategy for reducing greenhouse gas emissions from international shipping, which sets the level of ambition of reducing emissions by at least 50 % by 2050 compared with the level in 2008. The overall vision is to phase out greenhouse gas emissions from the industry as soon as possible in this century. In addition, the IMO strategy includes ambitions to improve the energy efficiency of each ship and to reduce the carbon intensity of the whole sector by reducing emissions per unit of transport work done by at least 40 % by 2030 and further towards 70 % by 2050.
The Green Shipping and move to Net Zero Shipping is now getting lot of national and international attention with GOI setting up National Hydrogen Mission and a committee under Cochin Shipyard for taking advantage of such changes under Atmanirbhar Bharat. This may require coordination at various levels for determining our position at IMO and one coordinator at IMO cell or the shadow committee may alone be not sufficient to do that work, analysis, etc. It also involves initiating greening of ports and shipping, development of regulatory framework for alternate fuel bunkering facilities and thus coordination with various stakeholders such as port, MoEF, Ministry of Commerce, DRDO, Ministry of New and Renewal Energy, etc. Further, the cell may have officers from Cochin Shipyard, Major Ports, IMU, IRS, Ministry of New and Renewable Energy and Ministry of Environment and Ministry of Commerce for issues related to Market Based Measures.
The decarbonization cell will develop Indias decarbonization roadmap outlining the need for specific policies and initiatives being/ to be taken by major ports and shipping industry.
The Green Tug Transition Program (GTTP) is a government initiative aimed at replacing diesel-powered harbor tugs with eco-friendly, zero-emission alternatives to reduce the maritime sectors carbon footprint. All Major Ports of India are mandated to call for tenders of Green Tugs under GTTP for a period of 15 years. Authorities such as Jawaharlal Nehru Port, Deendayal Port, Paradip Port, V.O. Chidambaranar Port, New Mangalore Port, Visakhapatnam Port have floated tenders for Green Tug. KMEW is very keen to participate in such tenders with a view of sustainable business of 15 years. This gives KMEW a sustainable growth and opportunity and make us a part of the Govt.s initiative towards Green energy.
Risk and Concerns
Your Company has in place a mechanism to identify, assess, monitor, and mitigate various risks to key business objectives that may threaten the existence of the Company. Major risks identified by the various functions are documented along with appropriate mitigating controls on a periodic basis. The risk management framework is reviewed periodically by the Board and Risk Management Committee.
The Company is exposed to normal industry risk factors. The Company manages these risks, by maintaining a prudent financial profile and by following healthy business and risk management practices.
1. Competition from Established Players - The marine engineering industry is a competitive industry which faces competition with both Small and larger players in the segment. Small/Unorganised players without proper evaluation of business and industry sometimes place unbalanced bids and quote unreasonably low which makes difficult for companies like us to compete with them. Such companies fail miserably in the long run but for shorter run such competition challenges the company either to lower down the price or loose the bid.
Large, established companies possessing more resources, a broader client base, and advanced technology have strong reputation and the ability to secure high-value contracts, which makes it harder for KMEW to compete. Additionally, larger players can offer lower prices due to economies of scale, putting pressure on smaller companies to maintain their market share. This competition requires KMEW to find unique ways to differentiate itself, such as focusing on specialized services or providing superior customer service.
2. Technological Advancements - The rapid pace of technological advancements in marine engineering, such as the adoption of automation, AI, and robotics, presents both opportunities and challenges. Failing to keep up with these innovations could leave Knowledge Marine Engineering behind competitors who integrate cutting-edge technologies. These technologies improve efficiency, reduce operational costs, and enhance safety. Therefore, staying current with technological trends requires continuous investment in research, development, and employee training to avoid falling behind in the market.
3. Economic Instability - Economic fluctuations, such as recessions or downturns in global trade, can directly affect the demand for marine engineering services. Reduced shipping activity, lower port expansion projects, and decreased infrastructure spending can lead to fewer contracts. In addition, factors like rising fuel prices or global financial crises can increase operational costs and disrupt supply chains. We will adopt flexible strategies to navigate economic uncertainty, diversifying its client base and developing a risk management plan to mitigate potential losses.
4. Rising Operational Costs - The cost of raw materials, fuel, labour, and specialized equipment has been rising steadily in recent years. These rising costs can reduce the profit margins for marine engineering projects, especially when clients are unwilling to absorb the increased expenses. Additionally, the price volatility of materials and fuel could lead to budget overruns if not managed effectively. We will need to optimize its operational efficiency, explore cost-saving technologies, and ensure accurate project budgeting to minimize the impact of these rising costs on its bottom line.
5. Supply Chain Disruptions - The marine engineering industry is highly dependent on the timely delivery of materials and components, making supply chain disruptions a significant challenge. Factors such as geopolitical instability, natural disasters, or pandemics can lead to delays in the procurement of critical supplies, impacting project timelines. These disruptions can also lead to price hikes for raw materials and equipment, straining project budgets. To mitigate these risks, We are diversifying our suppliers, maintain strategic partnerships, and develop contingency plans to avoid delays and cost overruns.
6. Weather and Environmental Risks - Marine engineering projects are particularly vulnerable to unpredictable weather conditions, such as storms, cyclones, or extreme temperatures, which can delay operations or damage equipment. For instance, dredging projects or ship repairs could be halted due to severe weather, leading to increased costs and extended timelines. Such disruptions can also pose safety risks to personnel. We are incorporating weather forecasting tools, monitor environmental conditions closely, and develop risk mitigation strategies to minimize the impact of such weather-related risks on its projects.
In FY 2024-25, KMEWs Audit Committee and Risk Management Committee regularly reviewed the risk management reports and suggested corrective actions.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has a proper and adequate system of internal financial controls commensurate with its size & scale of operations, procedures, policies ensuring the effective, efficient and orderly conduct of the business and meets the following objectives: (a) Providing assurance regarding the effectiveness and efficiency of operations; (b) Efficient use and safeguarding of resources; (c) Control on Capex Cost (d) Proper Planning and bidding for the tenders having minimum 35% EBITDA Margins.
(e) Carrying out site visits and pre and post surveys before carrying out any project. (f) Compliance with policies, procedures and applicable laws and regulations; and (g) Transactions being accurately recorded and reported timely.
(h) The Company has a budgetary control system to monitor expenditures and operations against budgets on an ongoing basis.
The internal audit function is carried out by an independent firm of Chartered Accountants who carry out an in-depth review of internal control systems. During the year under review, the Company had engaged M/s. RSSA & Associates, Chartered Accountants, Mumbai for reviewing adequate Internal Financial Controls and to ensure proper and adequate systems for compliance with the provisions of all applicable laws. Such controls were tested and no reportable material weakness in the design or operation was observed.
Your Companys Financial Statements are prepared on the basis of the Significant Accounting Policies that are carefully selected by Management and approved by the Audit Committee and the Board. These Accounting policies are reviewed and updated from time to time.
The transactional controls built into the Tally ERP Systems ensure appropriate segregation of duties, appropriate level of approval mechanisms and maintenance of supporting records. The Policies related to the Information Management reinforce the control environment. The systems, Standard Operating Procedures and controls are reviewed by Management. These systems and controls are subjected to Internal Audit and their findings and recommendations are reviewed by the Audit Committee which ensures the implementation.
Your Company has in place adequate internal financial controls with reference to the Financial Statements commensurate with the size, scale and complexity of its operation ensuring the effective, efficient and orderly conduct of the business. Such controls have been assessed during the year under review taking into consideration the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by The Institute of Chartered Accountants of India. Based on the results of such assessments carried out by the Management, no reportable material weakness or significant deficiencies in the design or operation of internal financial controls were observed. Your Company recognizes that the Internal Financial Controls cannot provide absolute assurance of achieving financial, operational and compliance reporting objectives because of its inherent limitations. Also, projections of any evaluation of the Internal Financial Controls to future periods are subject to the risk that the Internal Financial Controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. Accordingly, regular audits and review processes ensure that such systems are reinforced on an ongoing basis.
Based on the assessment carried out by the Management and the evaluation of the results of the assessment, the Board is of the opinion that the Company has an adequate Internal Financial Control System that is operating effectively during the period under review.
There were no instances of fraud that necessitates reporting of material misstatements to the Companys operations
For and on behalf of the Board of Directors |
Knowledge Marine & Engineering Works Limited |
Saurabh Daswani |
Kanak Kewalramani |
Managing Director |
Whole-time Director & CFO |
DIN: 07297445 |
DIN: 06678703 |
Date: 03/September/2025 |
Place: Mumbai |
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