KMEW’s ₹1,100.39 crore charter work dominates balance order book

Knowledge Marine & Engineering Works Limited has ₹1,100.39 crore of charter and hire balance contracts, the largest portion of its ₹1,732.55 crore balance order book, with three battery-electric green-tug contracts accounting for ₹929.52 crore and scheduled to end from November 2042 to September 2043.

What is KMEW’s balance order book?

KMEW reports a balance order book of ₹1,732.55 crore against total contract value of ₹2,095.22 crore, with overall completion stated at 20%. The presentation labels this balance as the remaining contract value across its dredging, charter and hire, and shipbuilding activities.

The ₹1,732.55 crore balance comprises ₹1,100.39 crore in charter and hire, ₹467.75 crore in dredging, and ₹164.42 crore in shipbuilding. Charter and hire exceeds dredging by ₹632.64 crore and shipbuilding by ₹935.97 crore on remaining contract value.

Why does charter and hire account for most of KMEW’s order book?

Charter and hire accounts for ₹1,100.39 crore, or 63.51%, of KMEW’s reported balance order book because the segment includes multi-year vessel supply, manning, operation and maintenance agreements. Its total contract value of ₹1,139.69 crore is only ₹39.30 crore above its balance value, in line with the presentation’s 3% completion figure.

The charter and hire schedule contains 17 contracts for patrol boats, launches, tugs, a survey-cum-security launch and a speed-cum-chase boat. Contract durations range from three years for the Dredging Corporation of India Limited survey work ending 25 May 2028 to 15 years for the green-tug agreements.

The three largest charter balances are battery-electric green-tug assignments: ₹367.09 crore for V.O.Chidambaranar Port Authority, ₹325.71 crore for Visakhapatnam Port Authority and ₹236.72 crore for Mumbai Port Authority. Their combined ₹929.52 crore balance equals 84.47% of the charter and hire segment’s remaining value.

How long do KMEW’s largest charter contracts run?

KMEW’s three largest charter contracts each have a stated 15-year duration and are scheduled to end between 28 November 2042 and 14 September 2043. The V.O.Chidambaranar Port Authority green-tug contract starts on 1 December 2027 and ends on 28 November 2042, while the Visakhapatnam Port Authority contract runs from 22 December 2027 to 19 December 2042.

Mumbai Port Authority’s ₹236.72 crore green-tug contract is scheduled from 18 September 2028 to 14 September 2043. The charter schedule describes all three vessels as under construction, linking the full remaining values to future construction, deployment and operation.

Other charter work extends into 2033. A ₹81.56 crore, seven-year contract for a 60-ton bollard-pull tug at V.O.Chidambaranar Port Authority runs from 31 October 2026 to 30 October 2033, while Mumbai Port Authority’s contract for two patrol boats runs from 2 March 2026 to 1 March 2033 and has ₹15.03 crore of balance value.

How does KMEW’s dredging book compare with charter and hire?

KMEW’s dredging balance is ₹467.75 crore, less than half the ₹1,100.39 crore in charter and hire, despite dredging having nine listed contracts against 17 in charter and hire. Dredging is 33% complete, compared with 3% for charter and hire, so a larger share of its total ₹697.63 crore contract value has been completed.

The largest individual dredging balance is ₹256.92 crore for three years of maintenance dredging at New Mangalore Port Authority. That contract is scheduled from 15 November 2026 to 15 March 2029 and represents 54.93% of the ₹467.75 crore dredging balance.

Other sizeable dredging balances include ₹67.34 crore for Inland Waterways Authority of India work on National Waterway-1 between Sultanganj, Mahendrapur and Barh, ending on 1 February 2028. Inland Waterways Authority of India contracts on the Farakka-Kahalgaon and Barh-Digha stretches carry remaining values of ₹23.25 crore and ₹33.27 crore, respectively, and both are scheduled to end in 2027.

What does KMEW’s shipbuilding order book contain?

KMEW reports ₹164.42 crore of shipbuilding balance against ₹257.90 crore of shipbuilding contract value, with 36% completion. The listed customer work is for Inland Waterways Authority of India and includes dredger ancillary units, four cutter suction dredgers with ancillary units, and 10 hybrid-electric passenger ferries with 20-passenger capacity.

The four cutter suction dredgers and ancillary units have ₹74.73 crore of balance value under a contract running from 9 October 2025 to 9 October 2027. The 10 hybrid-electric passenger ferries have ₹56.16 crore of remaining value and are scheduled under a 10-month contract from 19 June 2026 to 19 April 2027.

The presentation separately lists KMEW orders for construction of three 60-ton bollard-pull green tugs valued at ₹270 crore and one 25-knot speed-cum-chase boat valued at ₹5 crore. These entries have stated end dates of 14 September 2043 and 18 September 2031, respectively, while the reported shipbuilding segment total remains ₹257.90 crore.

Conclusion

KMEW’s disclosed balance order book is concentrated in charter and hire, which supplies ₹1,100.39 crore of the ₹1,732.55 crore total. The segment’s value is driven principally by three 15-year battery-electric green-tug agreements worth ₹929.52 crore in unexecuted contract value, whereas dredging has ₹467.75 crore remaining and shipbuilding has ₹164.42 crore.

The next disclosed milestones are the 1 December 2027 and 22 December 2027 starts of the first two major green-tug charters, followed by Mumbai Port Authority’s start on 18 September 2028. Management also targets completion of Phase 1 development at the Saphale Shipyard by February 2027, with capacity of up to 14 vessels annually.