Some analysts and industry watchers feel that DP World has restructured its India operations in order to facilitate fund raising in the country, if required in future.
Some analysts feel that the restructuring exercise is intended to raise the companyÂ’s valuation with an eye to tap the local capital market for funds in the future.
According to the restructuring plan of the firm, all the local assets of the company would be transferred to a newly incorporated company in India, named Hindustan Ports.
According to some analysts, the restructuring is aimed at consolidating and ‘Indianising’ the local assets, which would make their overall management easier and help route investments directly. DP World’s investments in India so far have been reportedly routed through Mauritius.
The restructuring could help direct investment through the holding company. With the restructuring of the business, the holding company is expected to be resilient as it could diversify the risks in earnings at a weak terminal.
DP World is majority owned by the Dubai Government. It is the biggest container port operator in India, handling close to 40 per cent of the countryÂ’s container volume through its five terminals. DP World is all set for an organisational restructuring in India.
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