Global shipping leader MOL confirms imminent investment in an Indian logistics startup, signalling a major strategic shift and portfolio diversification.
Japanese shipping titan Mitsui O.S.K. Lines (MOL), the world’s second-largest ship owner by fleet size, is set to make a significant investment in an Indian logistics startup. This move signals a major strategic shift for MOL, aiming to diversify its portfolio with more stable and sustainable cash flows, moving away from the highly volatile shipping industry.
The upcoming investment follows MOL’s recent ventures into the Indian commercial real estate sector, where it injected “slightly less than ₹2,000 crore” for minority stakes in projects currently under development in Gurgaon and Chennai.
Captain Anand Jayaraman, who spearheads MOL’s operations across South Asia and the Middle East, confirmed at a press briefing that discussions with the logistics startup are finalised, with an official announcement expected very soon. He did not disclose the specific investment amount.
This expansion aligns with MOL’s “Blue Action 2035” management plan, which envisions the company transforming from a shipping-only business into a multi-sectoral social infrastructure organisation. A key part of this strategy involves bolstering its non-marine assets.
Strategic Investment Vehicles and Focus Areas
MOL has established dedicated entities to facilitate these new investments:
- MOL Plus (launched 2021): Focused on investing in startups related to its primary shipping and logistics operations. Notably, MOL Plus has already set up a department in India to actively scout for local business investment opportunities.
- MOL Switch (established 2024): Dedicated to investing in renewable energy and sustainability projects. Captain Jayaraman indicated that clean technology companies could attract larger investments based on their potential.
MOL’s preference is for co-investment in startups rather than outright acquisitions. Logistics remains a primary area of interest, reflecting India’s growing importance in global supply chains.
MOL’s Existing and Expanding Indian Presence
MOL already boasts a substantial presence in India, ranking as the fourth-largest ship owner in the country by fleet size. It currently operates 13 Indian-flagged ships, with 10 in the Domestic Tariff Area (DTA) and three in Gujarat International Finance Tec-City (GIFT City). These vessels are actively involved in deploying crude oil and gas carriers for state-owned energy firms like Bharat Petroleum Corporation Ltd. (BPCL).
Looking ahead, MOL plans to expand its Indian fleet in response to its partners’ increasing demand for ships to transport energy raw materials and finished goods. The company is also open to “collaborations” with India’s state-run companies to fuel this growth, aligning with its regional strategy that highlights the Middle East, South Asia, and India as critical markets.
Exploring Indian Shipbuilding Opportunities
Beyond direct investments, MOL is also eyeing India’s shipbuilding industry as a potential alternative to established hubs like Japan, China, and South Korea. While direct investment in Indian shipyards is not on the cards, MOL is open to placing ship orders if Indian facilities meet global quality and delivery standards. “If Indian shipyards deliver good quality on time, they can become a strong option when Chinese and Korean yards are full,” Captain Jayaraman stated, underscoring India’s rising prominence in global logistics and potentially shipbuilding.
Source: India shipping news
