Deal Description

Preamble

Geographically, culturally, and religiously linked on both sides of the Palk strait. People-to-people movement between the two countries is very important and high in demand. Since the Rameshwaram – Thalai Mannar ferry service stopped in mid-1980 there is a need and demand to start an affordable, convenient, and comfortable passenger ferry service between both countries.

Initiatives with the Government of India

The promoter of IndSri Ferry Services Pvt Ltd, Mr. S Niranjan Nanthagopan, has taken initiatives in 2015 and had several discussions with the Ministry of Shipping and Ministry of External Affairs of the Government of India. Recently we are in contact with the Tamil Nadu Government under whom the Port of Nagapattinam is being managed by the Tamil Nadu Maritime Board.

Promotor Director with the then Minister of Ports, Shipping and Waterways, GoI, Shri. Mansuk Mandavya discussed the Karaikal – Kankesanthurai Ferry Service in December 2019 as well as participated in the inter-ministerial meeting chaired by the Hon. Minister.

Subsequently, also participated and made a presentation at the Pudhuchery Secretariat attended by officials of the Ports Department Government of Pudhuchery and Karaikal Port chaired by Hon Minister of Ports and Shipping Shri. Mansuk Mandavya on 27^th February 2020.

 Later Sagarmala Development Company Limited of the Ministry of Ports, Shipping and Inland Waterways, Government of India invited Expression of Interest for the Karaikal – Kankesanthurai Passenger Ferry Service in December 2020 and we have signed an MOU for the same. Photos below signing of MOU between the Managing Director of INDSRI FERRY SERVICES PVT LTD (ISFS), S Niranjan Nanthagopan and SAGARMALA DEVELOPMENT COMPANY LTD Shri. Dilip Kumar Gupta on 1^st March 2021.

Department of Ports, Government of Puducherry has already issued a letter with necessary clearance from the Ministry of Home Affairs, Government of India.

 Recently, since Karaikal Ports Ltd was bought over by the Adani Group, GOI has decided to change the port from Karaikal to Nagapattinam which is about 25km south of Karaikal, due to practical difficulties to operate from Karaikal.

Initiatives with the Government of Sri Lanka

 The Ministry of Ports, Shipping and Aviation has already issued a letter with approval to start the passenger Ferry Service between Karaikal and Kankesanthurai valid up to 30 September 2023.

 The Service

 We have identified a passenger ferry that will be acceptable and registered with IRS Class HSC and CAT-A notation, with a capacity of about 120 passengers, each with 100 kg of free baggage allowance. The Ferry will have a speed of about 23-25 nm/hr and will cover the distance between Nagaipatnam and Kankesanthurai in about 3 hours. Hence this will be an everyday service between the ports.

IndSri Ferry Services Pvt Ltd was incorporated in India on 20^th December 2020 to serve this sector.

The Managing Director of the company is S Niranjan Nanthagopan, a Sri Lankan, and a Singapore Permanent Resident, is an accountant by profession, a proud alumnus of the Indian Institute of Management Ahmadabad (IIMA) and a self-made Entrepreneur with a wealth of experience of over 30 years. He and his family will hold 52% of the Holding Company in Singapore.

 The company is in the process of making final arrangements in appointing a Principal Sales and Ground Handling Agent in Sri Lanka as well as developing a web-based ticketing and check-in system and an integrated app for both Android and iOS as well.

A forecast of financials for the first year for the Indian Company is shown below.

Please also note Indian Registered Entity IndSri Ferry Services Pvt Ltd will be 98% owned by the Singapore Company IndSri Holding Pte Ltd.

 The holding company will take it on a lease and the said ferry will sublease to the fully owned subsidiary for a monthly lease or management fee payment.

The equity requirement is to purchase the identified, passenger ferry manufactured in Singapore. The ferry is currently in the Indian Waters and is owned by a company registered in India. This company will transfer the ownership of the ferry to our Singapore entity or its SPV subsidiary.

The Indian entity will remit a lease amount or management fee to the Holding Company in Singapore.

Fund Requirement

To execute the project the following funds are required :

Porposed Structure

 Investment will be made into INDSRI HOLDING PTE LTD (incorporated in Singapore) partly by equity and party by Debt. Major Portion of thie USD 1.5 Mn can be debt with fixed rate tobe deignated as Redeemabe Preferance Shares as Dividend declared in Singapore after corporate tax is free in the hands of the share holders. 

IndSri Holding Pte Ltd will own 98% of the operator in India INDSRI FERRY SERVICES PVT LTD who currently holds the necessary approvals from GOI and & GOSL.  Holding company will acquire the intended ferry thourgh a Fully owned Subsidiary registered in Singapore INDSRI FERRYONE PTE LTD. This company wil bareboat chater to the Indian Operator and recive an Charter Payment to the holding company which will be the main income to the Holding Company. 

Promoter (S Niranjan Nanthagopan & Family will hold 51% of the holding company Ordinary Shares. 

Further detais can discussed with potentional insvestor or investors.

Forecast Finanacials can be shared with those who are interested.  

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