After its continuous losses, State-owned Shipping Corporation of India (SCI) has decided to exit its chemical carrier joint venture with Shapoorji Pallonji Group. The exit is part of a plan to trim losses at IndiaÂ’s biggest ocean carrier, which faces the prospects of losing its so-called navaratna tag if it posts losses in the year to March 2014, which would be its third in a row.
SCI holds a 50 per cent stake in SCI Forbes, a chemical transportation company that started operations in 2009 with four new chemical tankers, each having a capacity to carry 13,000 tonne of cargo.
Shapoorji Pallonji Group companies Forbes and Sterling Investment Corp own 25 per cent each in IndiaÂ’s lone chemical tanker operating firm. The joint venture company was formed to tap the demand for moving petrochemicals from West Asia. The board of Shipping Corp has allowed the company to exit the joint venture by selling its 50 per cent stake to the other partners.
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