The Shipping Corporation of India Limited (SCI.NS) Bundle
From its founding in Mumbai on 2 October 1961 to its role today as India's largest ocean carrier, the Shipping Corporation of India (SCI) sits at the crossroads of national strategy and commercial shipping-still majority government-owned with a 63.75% stake while 36.25% shares trade publicly; its diversified fleet of 55 vessels (tankers, bulkers, container and offshore assets) anchors liner, bulk, tanker and technical/offshore segments that together generated consolidated revenue of ₹5,605.83 crore and a net profit of ₹843.58 crore in FY25 (up 24.24% year‑on‑year, revenue +11.08%), a performance backed by operational metrics like a 98% on‑time delivery rate in 2023 and environmental gains including a 15% carbon reduction since 2020 and plans for 10 LNG‑fuelled ships by 2025-while national policy moves such as the May 2025 announcement to build a new state shipping company and expand the national fleet by at least 1,000 ships over the next decade place SCI at the center of India's effort to boost capacity, cut foreign freight costs and modernize maritime logistics.
The Shipping Corporation of India Limited (SCI.NS): Intro
The Shipping Corporation of India Limited (SCI.NS) is India's principal national shipping line, incorporated on October 2, 1961, in Mumbai as a public sector undertaking under the Ministry of Ports, Shipping and Waterways. Over six decades SCI has evolved from a domestically focused tanker and dry-bulk carrier to a diversified operator with oil tankers, bulk carriers, container ships and offshore vessels serving global trade lanes. History and key milestones- 1961: Incorporated on October 2 in Mumbai as a central public sector undertaking.
- 2003: Recruited its first batch of female officers, advancing gender inclusivity in Indian maritime services.
- 2019: Government of India approved privatization on November 21 to boost operational efficiency and competitiveness.
- 2022: Privatization process delayed and reassessed due to geopolitical fallout from the Russo‑Ukraine war.
- May 2025: Government announced plans to form a new national shipping company and expand the national fleet by at least 1,000 ships over the next decade, with SCI earmarked to play a pivotal role.
- August 2025: Fleet comprised 55 vessels spanning oil tankers, bulk carriers, container ships and offshore vessels.
- Ownership: Historically a central government‑owned public sector enterprise under the Ministry of Ports, Shipping and Waterways; subject to ongoing privatization/strategic restructuring initiatives since 2019.
- Governance: Board of Directors with representatives from government (during PSU phase), independent directors and professional maritime executives; governance has been moving toward greater commercial autonomy in recent years.
- Strategic role: National carrier for energy and bulk commodity movements, a key asset in national maritime strategy and flagged for participation in the government's fleet expansion plan announced in 2025.
| Vessel Type | Count | Primary Employment |
|---|---|---|
| Oil Tankers | 20 | Crude and product carriage on international and coastal trades |
| Bulk Carriers | 18 | Iron ore, coal, grain and mineral cargos |
| Container Ships | 10 | Box trade on regional and feeder routes |
| Offshore Vessels | 7 | Support to offshore energy projects, rigs and subsea operations |
| Total | 55 |
- Mission: To provide safe, reliable and efficient shipping and logistics services while supporting India's maritime security and trade objectives.
- Core capabilities: Ship owning and operating, time‑charter and voyage charter services, ship management, crew training and offshore logistics support.
- Operational strengths: Diversified vessel mix, strategic positioning on energy and dry bulk trades, experienced technical and crewing organization.
- Asset ownership and chartering: SCI owns and operates vessels and charters them on voyage and time‑charter contracts to commodity traders, oil majors and container lines.
- Freight and charter revenue: Primary revenue derives from freight income on voyage charters and hire income on time charters.
- Ship management and technical services: In‑house technical management, crewing and maintenance deliver operational control and third‑party ship management income potential.
- Offshore and project logistics: Revenue from offshore support vessels and project logistics for energy and infrastructure projects.
- Ancillary services: Earnings from bunkering arrangements, agency services, demurrage and claims settlements where applicable.
- Freight markets: Spot and contract freight rates for tankers, bulkers and containers directly influence top‑line volatility and fleet utilization.
- Time‑charter employment: Multi‑month to multi‑year charters provide stable cash flows and risk mitigation vs. spot exposure.
- Fleet utilization and age profile: Higher utilization and modern/efficient tonnage reduce voyage costs and increase operating margin.
- Fuel and voyage costs: Bunker prices and voyage logistics (ballast legs, port delays) materially affect voyage profitability.
- Ancillary and value‑added services: Ship management, offshore contracts and project logistics enhance revenue diversification and margin uplift.
| Metric | Why it matters |
|---|---|
| Fleet size and composition | Determines revenue mix, market exposure and commercial flexibility |
| Fleet utilization (%) | Higher utilization correlates to better fixed‑cost absorption and profitability |
| Average charter rate / freight rate | Directly impacts revenue per vessel-day or per voyage |
| Voyage costs (bunker, port, canal dues) | Major determinant of voyage profitability |
| Average vessel age | Affects fuel efficiency, maintenance capex and regulatory compliance costs |
- Privatization process (2019 onwards): Intended to improve competitiveness and access to capital; delayed and re‑assessed because of geopolitical instability in 2022, but remains a material strategic theme.
- National fleet expansion plan (May 2025): Government commitment to add at least 1,000 ships over a decade positions SCI as a potential executing partner and beneficiary of new tonnage, contracts and government‑sponsored shipping initiatives.
- Operational modernization: Focus on fleet renewal, compliance with environmental regulations (IMO 2020/2030-era rules), and digitalization of operations to reduce costs and improve service quality.
The Shipping Corporation of India Limited (SCI.NS): History
The Shipping Corporation of India Limited (SCI.NS) is a long-standing public sector shipping company established to operate and manage India's merchant fleet. Over decades it evolved from a state-owned consolidator of national shipping assets into a diversified operator across tanker, bulk, container and offshore segments.- Ownership: The Government of India holds a 63.75% stake; the remaining 36.25% is publicly held and actively traded on the NSE and BSE.
- Privatization timeline: The government initiated divestment in 2022 to bring private investment and efficiency; the process was delayed amid reassessments triggered by the geopolitical fallout from the Russo‑Ukraine war.
- Strategic moves (2025): In May 2025 the government announced plans to establish a new shipping company to expand the national fleet, positioning SCI to play a pivotal role in that initiative.
- Fleet (Aug 2025): SCI's fleet comprised 55 vessels spanning oil tankers, bulk carriers, container ships and offshore vessels, reflecting diversified operations.
| Metric | Data / Value |
|---|---|
| Government stake | 63.75% |
| Public float | 36.25% |
| Primary exchanges | NSE, BSE |
| Privatization initiated | 2022 |
| Privatization impact | Delayed due to Russo‑Ukraine war; strategic reassessment |
| New national shipping company announced | May 2025 (SCI to play pivotal role) |
| Fleet size (Aug 2025) | 55 vessels (tankers, bulk, container, offshore) |
- Freight and chartering: SCI earns voyage and time‑charter revenue by transporting crude, petroleum products, dry bulk cargo and containerized goods for charterers and traders.
- Contract and liner services: Long‑term contracts with oil companies, government agencies and industrial shippers provide predictable cashflows.
- Offshore and specialized services: Revenue from offshore support, rig moves and project logistics for oil & gas and infrastructure clients.
- Third‑party ship management and agency services: Fees from crewing, technical management, and port agency operations.
- Asset utilization and sale/leaseback: Optimizing fleet utilization, short‑term charters and selective divestment or time‑charter reallocation to capture favourable market rates.
- Market sensitivity: Earnings are cyclical and sensitive to global shipping demand and freight rate volatility.
- Strategic ownership change: Any further divestment or the creation of the new national shipping entity (May 2025) can materially affect fleet strategy and capital structure.
- Fleet mix and renewal: Maintaining a balanced mix of tankers, bulkers, containers and offshore assets is central to revenue diversification and risk management.
The Shipping Corporation of India Limited (SCI.NS): Ownership Structure
The Shipping Corporation of India Limited (SCI.NS) is a majority government‑promoted maritime company whose strategic role supports India's trade and national interests. Its mission and values emphasize service to the nation, operational excellence, safety and environmental stewardship.- Mission: Serve India's strategic shipping needs and support economic growth through efficient, reliable maritime services.
- Quality & Safety: Uphold highest standards in fleet management and cargo operations to ensure safety and reliability.
- Environmental Responsibility: Minimize ecological footprint via innovation and compliance with international standards.
| Metric / Target | 2020 Baseline | 2023 Result | 2025 Target |
|---|---|---|---|
| On‑time delivery rate | - | 98% | Maintain ≥98% |
| Industry average on‑time delivery | - | 92% (2023) | - |
| Carbon emissions (vs 2020) | Baseline (2020) | -15% (2023) | -20% (by 2025) |
| LNG‑fueled vessels planned | 0 (baseline) | - | 10 new LNG vessels (by 2025) |
- Commercial shipping services: liner and bulk cargo contracts, time‑charter and voyage charter contracts with exporters, importers and trading houses.
- Freight & charter revenue: income from carriage of dry bulk, liquid cargo (including crude and petroleum products), and containerised cargo.
- Ship management & logistics: ancillary services such as crew management, technical management and multimodal logistics add fee‑based revenue.
- Strategic government contracts: defence and PSU cargo movements provide stable, often long‑term revenue streams aligned with national priorities.
| Revenue Stream | Primary Customers | Revenue Characteristics |
|---|---|---|
| Liner & Container Services | Importers, exporters, freight forwarders | Regular schedules, contract/spot rates, volume‑sensitive |
| Bulk & Tanker Operations | Commodity traders, oil companies, PSUs | Voyage/time charters, market‑linked rates, higher volatility |
| Ship & Crew Management | Third‑party vessel owners, government agencies | Fee‑based, recurring, lower volatility |
| Strategic/Defence Charters | Government departments, PSUs | Longer‑term, predictable cash flow |
- Achieved 98% on‑time delivery in 2023, above the 2023 industry average of 92%.
- Cut carbon emissions 15% vs 2020; target a 20% reduction by 2025.
- Plan to induct 10 LNG‑fueled vessels by 2025 to reduce fuel emissions and meet global standards.
The Shipping Corporation of India Limited (SCI.NS): Mission and Values
The Shipping Corporation of India Limited (SCI.NS) is India's largest shipping company, operating a diversified fleet and service offering across liner, bulk, tanker and technical & offshore segments. Founded in 1961, SCI has grown into a commercially driven, government-rooted enterprise with a strategic role in India's maritime logistics and energy security.
- Founded: 1961 (Government of India initiative)
- Primary listing: National Stock Exchange of India (SCI.NS) and BSE
- Fleet (approx.): ~79 vessels (owned + long-term chartered) including bulk carriers, tankers, LPG/gas carriers, container and multipurpose vessels
- Employees: Several thousand shore and seagoing personnel across global operations
Mission
Ensure safe, efficient and environmentally responsible maritime transportation for India and global clients; support national trade and energy logistics while delivering sustainable shareholder returns.
Core Values
- Safety and regulatory compliance
- Operational excellence and reliability
- Environmental stewardship and fuel/emissions efficiency
- Customer-centric integrated solutions
- Integrity and professional conduct
How It Works
SCI operates through four principal business segments, each structured to capture specific cargo types, routes and service models. The company combines owned vessels, time-charters and voyage-charters, supported by in-house technical management and commercial chartering teams.
- Liner: Break-bulk and container transport on domestic coastal and selected international feeder routes; scheduled services for trade lanes linking India to East Africa, Middle East and regional hubs.
- Bulk Carriers: Dry bulk operations moving iron ore, coal, grain and other commodities for mining, steel and power sectors on both tramp and contract of affreightment (COA) business.
- Tankers: Fleet of crude/product tankers, LPG carriers and gas tankers servicing energy majors, refiners and traders; includes spot and time-charter employment and long-term contracts.
- Technical & Offshore: Offshore marine logistics including towing, anchor-handling, platform support, offshore installation and emergency response vessels; also maintenance and ship management.
- Support services: Chartering brokerage, voyage planning, marine consultancy and technical management offering end-to-end solutions to cargo owners and offshore operators.
| Segment | Primary Activities | Typical Cargo / Clients | Revenue Contribution (approx.) |
|---|---|---|---|
| Liner | Scheduled break-bulk & container services, coastal logistics | Consumer goods, project cargo, containerized freight | ~20-25% |
| Bulk Carriers | Dry bulk tramp/coA voyages, long-haul contracts | Iron ore, coal, grain, minerals | ~25-35% |
| Tankers | Crude/product and gas transport (spot & time charter) | Crude oil, refined petroleum products, LPG, LNG (if applicable) | ~30-40% |
| Technical & Offshore | Anchor handling, towing, offshore installation & support | Oil & gas majors, offshore contractors | ~5-15% |
How SCI Makes Money
- Voyage Revenue: Earnings from single-voyage charters (spot) where freight rates and distance determine revenue.
- Time-Charter Revenue: Fixed daily hire under time-charter contracts, providing predictable cash flows for vessel employment.
- Contract of Affreightment (COA): Long-term contracts for bulk or liner customers providing volume commitments and revenue stability.
- Technical & Offshore Services: Fee-based earnings from offshore support operations, towage and specialized marine projects.
- Value-added Services: Chartering broking, marine consultancy, ship-management fees and voyage optimization services.
- Fleet Optimization: Trading between spot and time-charter markets, and employing a mix of owned vs chartered vessels to manage capital and operating leverage.
Key Operational and Financial Metrics (indicative)
| Metric | Indicative Value |
|---|---|
| Fleet size (owned + chartered) | ~79 vessels |
| Typical annual freight mix | Dry bulk, tankers and liner in balanced proportions depending on market cycle |
| Revenue drivers | Freight rates, vessel utilization, charter-hire rates, bunker costs, port/Canal fees |
| Major cost items | Fuel (bunkers), crewing, maintenance & dry-docking, insurance, port charges, finance costs |
| Commercial levers | Long-term COAs, time-charters, fleet deployment and slow-steaming/fuel optimization |
Recent Financial & Market Notes
- Revenue and profitability are cycle-sensitive and move with global trade volumes and freight-rate cycles (e.g., BDI, tanker rates).
- SCI's earnings mix benefits from a diversified fleet - tankers and bulk often provide offsetting performance across cycles.
- Capital allocation: mix of vessel acquisitions, occasional newbuild contracts and selective charters to balance CAPEX and cashflow.
For a deeper investor-focused profile and shareholder activity, see: Exploring The Shipping Corporation of India Limited Investor Profile: Who's Buying and Why?
The Shipping Corporation of India Limited (SCI.NS): How It Works
The Shipping Corporation of India Limited (SCI.NS) operates as an integrated shipping and maritime services company whose business model converts vessel capacity, specialised marine services and logistics capabilities into multiple revenue streams across domestic and international trades.- Core fleet operations - time-charter, voyage charter and tramp voyages across bulk, tankers, containers and specialised vessels.
- Liner & passenger services - scheduled container liner routes, passenger-cargo services and related terminal/marketing activities.
- Offshore & marine support - offshore supply, towing, anchor-handling, platform support and subsea logistics for oil & gas and renewables.
- Project, chartering & consultancy - project chartering, ship-broking, feasibility & design consultancy, project management and site supervision.
- Freight & charter hires - charter rates (time and voyage) for bulk cargoes (iron ore, coal, bauxite, grain, fertilizers, steel products) and oil/chemical cargoes.
- Container & liner income - box freight, slot chartering, port handling margins, break-bulk services and freight reconciliation fees.
- Passenger-cargo services - ticketing, onboard services and cargo revenue from coastal/passenger-cum-cargo vessels.
- Offshore contracts - day-rate and project fees for towing, anchor handling, supply runs, platform support and heavy-lift operations.
- Value-added services - marine consultancy fees, technical management, ship agency income and demurrage/penalty recoveries.
| Vessel Type | Approx. Count | Main Commercial Role |
|---|---|---|
| Bulk carriers | 20 | Iron ore, coal, grain, steel, bauxite shipments |
| Crude oil tankers | 12 | Long-haul crude carriage under voyage/time charters |
| Product tankers | 10 | Refined petroleum products & chemicals |
| Container vessels | 8 | Scheduled liner services and spot/container slot sales |
| Passenger-cum-cargo | 4 | Coastal passenger & break-bulk cargo |
| LPG carriers | 6 | Liquefied petroleum gas transportation |
| Offshore supply & support vessels | 14 | Marine logistics for energy sector (towing, AHTS, OSV) |
- Voyage charters: Revenue per voyage depends on distance, bunker cost, ballast/laycan scheduling and spot market freight rates; SCI mixes spot and contract voyages to manage volatility.
- Time charters: Stable day-rate income that transfers certain voyage costs and commercial positioning to the charterer-used for predictable cash flows.
- Liner operations: Yield management through network scheduling, container slot optimisation and ancillary port/terminal services.
- Offshore & project work: Higher-margin, contract-based billing tied to project scope, mobilization/demobilization and specialised equipment usage.
- Consultancy & technical services: Fee-based projects (feasibility, design, supervision) that leverage in-house technical and commercial expertise.
| Metric | Amount | YoY Change |
|---|---|---|
| Revenue from operations | ₹5,605.83 crore | +11.08% |
| Consolidated net profit | ₹843.58 crore | +24.24% |
- Fleet mix & employment strategy - balancing long-term charters with spot market exposure to capture upside in freight cycles.
- Fuel & voyage optimization - bunker procurement, slow-steaming and voyage planning to manage fuel as a major cost component.
- Asset utilisation & scheduling - minimising ballast legs, optimising port calls and improving turnaround times.
- Diversification across cargo types and services - buffers against single-segment shocks (e.g., crude vs dry bulk).
- Commercial contracts in offshore & project segments - higher day-rates and multi-year contracts enhance revenue visibility.
- Dry bulk commodities: iron ore, coal, bauxite, grain, fertilizer, steel and plywood.
- Liquid bulk: crude oil, refined products and LPG.
- Containerised & break-bulk cargoes: scheduled liner freight, project cargo movements and roll-on/roll-off where applicable.
- Marine logistics: towing, anchor-handling, offshore installation and subsea support.
- Consulting & chartering: technical advisory, feasibility studies, ship design & project supervision.
The Shipping Corporation of India Limited (SCI.NS): How It Makes Money
The Shipping Corporation of India Limited (SCI.NS) generates revenue through diversified maritime operations, leveraging a large owned and leased fleet, long-term charters, and value-added logistics services. Strong operational performance is reflected in consolidated net profit rising 24.24% to ₹843.58 crore in FY25, underscoring margin expansion and freight-rate realization.- Core revenue streams: time-charter and voyage-charter earnings, container and bulk cargo carriage, offshore and specialized vessels, and logistics/agency services.
- Asset strategies: owned vessels provide steady charter income and resale/depreciation tax benefits; long-term charters smooth cash flows; short-term spot employment captures upside in freight cycles.
- Value-added services: ship management, marine insurance facilitation, and port/agency operations increase per-vessel yield.
| Key Metric | Value / Note |
|---|---|
| Consolidated net profit (FY25) | ₹843.58 crore (up 24.24% YoY) |
| Fleet scale | Over 80 vessels (India's largest ocean carrier by fleet size) |
| Government initiative (May 2025) | New national shipping company to add ≥1,000 ships over next decade; SCI to play pivotal role |
| Freight-cost target | Proposed reduction to foreign firms by ≥33% by 2047 |
| Sustainability focus | Fleet modernization, fuel-efficiency programs, and compliance with IMO emissions norms |
- How revenue converts to profit:
- Higher time-charter utilization and longer-term contracts stabilize earnings and improve EBITDA margins.
- Fleet modernization (dual-fuel/LNG-ready and scrubber retrofits) reduces fuel intensity and regulatory risk, protecting margins.
- Participation in the government's fleet expansion and preferential state-backed contracts can lift utilization and average freight realizations.
- Growth and outlook drivers:
- Scale advantage from being India's largest ocean carrier supports pricing power on domestic-export routes.
- Expected incremental revenue from the national fleet expansion initiative and projected freight-cost reduction to attract foreign cargo via Indian carriers.
- Sustainability credentials improve access to charterers prioritizing lower-emission tonnage, enhancing charter rates over time.
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