Great Eastern Shipping Company (GE Shipping) has formally split. On Wednesday, Indias largest private shipping company announced its much awaited reformation - a vertical split - involving the demerger of its offshore oilfield services, consisting of drilling services, marine logistics, marine construction and port/terminal services. Vijay Sheth, managing director of GE Shipping, will take charge as managing director of the demerged company.
Bharat Sheth, currently deputy chairman and managing director, will continue to head, GE Shipping. KM Sheth, chairman of GE Shipping, is unlikely to assume any responsibilities in the new company. He will continue to hold 25% in the new firm.
All the assets under the offshore division as on March 31, 05, will be shifted to the new company. Around 80 people who are presently working for the division will also be transferred to the new entity, whose headquartered would be at Energy House on DN Road in Mumbai.
The company restructuring was commenced to boost shareholder value, and that it has not stemmed from any individual discrepancy.