?That some achieve great success, is proof to all that others can achieve it as well.??Abraham Lincoln
Being in the business of protecting lives and other precious objects, keen observation is to me as spots to a leopard. I have been observing the growth of Mercator Lines for quite some time now. Lincoln?s quote above truly embodies what I feel whenever I see or read about Mercator?s achievements.
Incorporated in 1983, Mercator Lines is the second largest private sector shipping company in India in terms of tonnage. Since its inception, the company has overcome conventional barriers of the shipping industry and has succeeded in providing the most optimal shipping solutions.
From a traditional tanker company Mercator has diversified interests in transportation, dredging, oil and gas, ship management services, marine logistics and offshore services. It has also made its presence global by setting subsidiaries in Singapore, Mozambique and Indonesia. All this is due to one man?s vision and keen insight?HK Mittal. Aged 60 years, Mittal, Executive Chairman of the company, acquired Mercator in 1988. An enterprising individual, Mittal has been able to bring transparency and professionalism in a traditional industry like shipping. Living up to opportunities around him and making the most of his resources, he has been able to create the fastest-growing shipping company of today (From Rs 65 lakh in 1988, the firm?s revenue increased to Rs 2,200 crore in the year ended March 31, 2009).
Close observations indicate that the company has been able to transform barriers into opportunities for further growth. Considering the cyclical nature of the global shipping industry, the company steered its way by diversifying into various businesses, oil and natural gas exploration being one of them. Thus today, with Western economies emerging from recession, Mercator is expected to benefit from a possible upturn in the global demand for exploring and transporting crude oil and other products.
The business model of Mercator Lines is simple?aggressively grab every opportunity, thereby derisking the business, while locking in its vessels for long-term contracts to mitigate the volatility of freight rates. A strategy that Mittal led his team to believe in and execute successfully, setting a proud example for India Inc as a whole.
One of Mercators core value is ?honouring commitment towards stakeholders?. Truly, living up to this, the company has grown from strength to strength over the last 25 years, expanding both horizontally and vertically, thereby building immense shareholder value. A perfect example of rags to riches, Mercator has grown from a moderate barge operator to India?s second largest private sector company with six solid verticals.
Mercator?s success story can also be attributed to it mastering the art of managing people. It has laid great emphasis on human capital development, talent management and retention. It has successfully inculcated within each employee the ?Mercatorian? spirit of innovation. Testimony to this is the gamut awards one not only individually by Mittal, but also by the company both in India and abroad. My conclusion lies in HK Mittal?s humble words, ?And this is just the beginning.?