India has a rich maritime history with sailors from around the world traveling the Indian subcontinent for thousands of years to transport fabrics, gold and spices. In present-day Gujarat, the world’s earliest known port at Lothal was a vital trade centre in ancient times and was a thriving city during the Indus Valley civilisation. Interestingly, the Indian Ocean is the only ocean in the world named after a country and Indian ships dominated the waters till the 17th century CE.
The story of The Great Eastern Shipping Company began on a lovely note during the sugar trade of the early decade of the 20th century. At that time no one could have ever thought that a sugar business partnership between two brothers and a Parsi financier of the Bhiwandiwalla family could lay the foundation for what could go on to become India’s largest private-sector shipping company.
The Great Eastern Shipping Company was born in 1948 immediately after Independence with a humble beginning and today has grown to become India’s largest private sector shipping company and recognised globally. It was during the global crisis of World War II that brought the two disparate tracks of sugar and shipping together. The leap of faith from being a sugar company to entering the shipping business was definitely a good business rationale. During World War II, the United States built around 3000 liberty ships which were low-cost vessels. But they were idling in the New York harbour after the cessation of the war and the US Senate decided to auction these ships .
The company’s promoters, the Sheth brothers on the advice of their London Brokers decided to buy these ships to start their own shipping business. On the advice of Mr HT Parekh, the legendary founder of Housing Development Finance Corp, the promoters decided to form a new company named The Great Eastern Shipping Company Limited on 3rd August 1948. The specific advice given by Mr Parekh was not to mix the sugar trading business with the shipping business and the company name was also given by him . The demand for shipping witnessed an unprecedented boom during the 1950s and 1960s where the sea trade grew more than fivefold during this period going up from approximately 500 million tonnes in 1952 to nearly 2600 million tonnes in 1970 .
The construction of the Suez Canal had a significant impact on global shipping and such an unprecedented and sequential growth has never been seen since in the shipping industry. G E Shipping is today the country’s largest private sector shipping service provider enjoying a formidable presence in the international maritime industry. The shipping business operates under two main businesses – dry bulk carriers and tankers.
Backed by an enviable clientele comprising industry leaders, international oil companies and governments who vouch for its services, the division has earned the status of being the most preferred shipping service provider. With a pulse on the global market and a thorough understanding of the ever-evolving market needs , the division is well equipped to anticipate the demand of its clients and to deliver on its commitments, successfully and satisfactorily. The company posted a net profit of Rs 538 crores on a consolidated basis with its consolidated NAV moving up to Rs 1316 per share as on 31st December 2023. Due to disruptions across the Swiss Canal, the Red sea and the Panama Canal, the shipping industry globally is facing lot of headwinds. The G E Shipping stock is currently quoting at Rs 936 on the Indian bourses and can be added on to the investment portfolio for long term gains .