the unicorn in ship recycling f - gms beginning hailing from the western indian state of gujarat dr....
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DR. ANIL SHARMA
President & CEO, GMS
42 AUGUST 2017 STEEL 360 INDIA
S T O R YCOVER
THE UNICORN IN SHIP RECYCLING
DR. ANIL SHARMA
rom the streets of little-known Bhavnagar in Gujarat to the helm of the ship
Frecycling industry, the journey of GMS chief Dr Anil Sharma has been nothing
short of an unbelievable tale of grit, acumen and as Dr Sharma magnanimously
puts it, fortune. Dr Sharma, not long back, was working as a professor in
Maryland, USA, before embarking up on a path that would eventually lead him to the
position of a global business leader, within the course of two decades.
After having built a company which stands as the largest cash buyer of ships in the
world, from ground up, Dr Sharma is reckoned as an authority in the field of ship
recycling with more than 2 decades spent establishing what is now the widest trade
network in the field. Dr Sharma's dominance in the industry can be better gauged by
the fact that it was he who coined the term ship-recycling. GMS presently has a 25 per
cent market share and has its footprint in more than 12 countries. During its 25 year
journey GMS has emerged as a pioneer in environment friendly recycling and was also
the first cash buyer to develop its own Green Ship Recycling Programme. The company
is acknowledged world over for its contribution towards development of infrastructure,
human resource and knowhow in green recycling.
B Y S T E E L 3 6 0 B U R E AU
STEEL 360 INDIA AUGUST 2017 43
DR. ANIL SHARMA
President & CEO, GMS
42 AUGUST 2017 STEEL 360 INDIA
S T O R YCOVER
THE UNICORN IN SHIP RECYCLING
DR. ANIL SHARMA
rom the streets of little-known Bhavnagar in Gujarat to the helm of the ship
Frecycling industry, the journey of GMS chief Dr Anil Sharma has been nothing
short of an unbelievable tale of grit, acumen and as Dr Sharma magnanimously
puts it, fortune. Dr Sharma, not long back, was working as a professor in
Maryland, USA, before embarking up on a path that would eventually lead him to the
position of a global business leader, within the course of two decades.
After having built a company which stands as the largest cash buyer of ships in the
world, from ground up, Dr Sharma is reckoned as an authority in the field of ship
recycling with more than 2 decades spent establishing what is now the widest trade
network in the field. Dr Sharma's dominance in the industry can be better gauged by
the fact that it was he who coined the term ship-recycling. GMS presently has a 25 per
cent market share and has its footprint in more than 12 countries. During its 25 year
journey GMS has emerged as a pioneer in environment friendly recycling and was also
the first cash buyer to develop its own Green Ship Recycling Programme. The company
is acknowledged world over for its contribution towards development of infrastructure,
human resource and knowhow in green recycling.
B Y S T E E L 3 6 0 B U R E AU
STEEL 360 INDIA AUGUST 2017 43
THE BEGINNING
Hailing from the Western Indian state of Gujarat Dr.
Sharma grew up in Bhavnagar, not far from the
unofficial ship breaking capital of the world, Alang
and thus was familiar with the business. However,
his tryst with ship breaking did not begin from
Gujarat, Dr Sharma rather would have to travel
halfway around the world to finally encounter his
true calling, while teaching in America.Capitalizing
on one opportunity after another from the
basement of his house in the US, Dr Sharma
established an empire that now stretches from
finance to owning its own fleet of ships.
While talking about his first step into the industry
Dr Sharma shared, I had people in Gujarat asking to
explore prospects to buy ships from the US for quite
some time, they would tell me you are so close to
Washington why don't you start buying ships and I
would reply that I simply dint have the money or
knew anything about ships. In Dr Sharma's
narration he did start actually pondering about the
possibilities and then finally found a company in
United Kingdom which was willing to lend me the
money. “I found out that the United States Maritime
Administration was looking to sell a few obsolete
naval ships and I immediately saw an opportunity”
Dr Sharma exclaimed. He bought 6 out of 8 ships in
the very first year of his business and subsequently
became the largest buyer.
Back in early 90s how strong was the industry and
demand?
Back then ship recycling was just beginning to grow in
Alang. People started getting aware of a business
opportunity. The industry was being shored up by
people who had little understanding about the field and
even bakers and restaurant owners were getting into
ship recycling to get a piece of the pie. However since
then Alang in particular has come a long way. Today
THE JOURNEY
A year later Dr Sharma was invited to Russia to
explore the possibilities of a similar deal to procure
naval ships and it was the successful completion of this
deal that cemented Dr Sharma's place in the field.
According to Dr Sharma he dealt with naval ships
between 1992 and 1996. “I knew very little about the
industry at that point in time while I was still working
out of my home. I chose to sell only to Alang initially as
my brother was there and had quite a few trade
sources”, Dr Sharma added. “It was only after 1996
that I planned to resign from my job after I had
established the business to some extent” Dr Sharma
asserted.
It was after this that Dr Sharma started developing
trade network in other major markets such as
Bangladesh, Pakistan, China and Turkey. He
established GMS in US, which stands as a global hub
for trade and transport. Talking further about the
company's journey, Dr Sharma shared that after GMS
was established in the industry as a cash buyer it was
only natural to venture into other avenues to further
propel growth. “We saw an opportunity after the 2008
banking crises as major banks had stopped lending to
small and medium sized fleet owners leaving a major
gap in the system” he shared. “We gradually started to
provide assistance to these ship owners and
companies as a collaboration and ventured into
financing and along with it also owning ships” he said.
S T O R YCOVER
DR SHARMA IN A CASUAL TETE-A-TETE WITH STEEL360, TALKS US THROUGH HIS RENDEZVOUS WITH DESTINY AND SHARES INSIGHTS INTO THE SHIP RECYCLING INDUSTRY.
those very people have grown into experts in ship
recycling and have established facilities that stand as an
example for recyclers around the globe. Today the
recyclers in Alang comply with industry best practices
and carry out their trade in accordance with the recycling
plans that we prepare. Our Green team members visit
these facilities on a regular basis and conduct audits and
extend technical assistance for greener, safer and more
profitable recycling.
44 STEEL 360 INDIAAUGUST 2017
How were Pakistan and Bangladesh poised back then?
In 1992 when I started out, I was a considerably small
player in the market and rather chose to sell only to the
recycling facilities inAlang. I did not have that many
connections in other countries. Because when you are new
in the market one tends to be more careful. However I was
aware that ship recycling had been going on in both
countries but I opted to diversify supply only after a certain
point of time.
Where do you see GMS going from here forth?
We have endeavored into various different verticals
including finance and ship ownership and plan to
consolidate our position in the industry. I have said this
time and again while speaking to the GMS team that our
job is not to sit on the sidelines and we rather need to be the
change. Our logo talks about leadership and we have these
values ingrained in our ethos. We have a global perspective
towards shipping and would want to influence positive
change. India government's acknowledgment of the Hong
Kong convention is an example how industry leaders such
as GMS can contribute towards developing a greener and
progressive industry.
How is the overall outlook for the industry in
medium term?
The outlook for the industry in the medium term looks
flatish, atleast during 2018-19. Primary reason behind this
is the aggressive scrapping of ships between 2011 to 2013.
In fact 2012 was the biggest year in history for ship
recycling and saw more than 1000 ships being scrapped.
After the global financial crisis in 2008 the market began
to resurge and a lot of ships were built. By 2012 due to
high cost even container ships which are supposed to run
for 30 years were being sold for recycling at just 8 years
of age.
Most countries are imposing strict standards on
quality of steel. How do you think this would impact
ship recycling?
The scrap from ship breaking is not used for purposes
which require superior grade of steel. The market that ship
recycling feeds does not need advanced or high strength
steel. In Bangladesh for example steel from ships is the
primary source in absence of blast furnaces. What needs to
be understood here is that sustainability is a key element
and ship recycling provides the world green steel. Today
yard owners in the United States are also pushing the
government to promote green steel.
As an entrepreneur yourself what do you think
is the key to success
I strongly believe that the harder you work the
luckier you get. There can be no shortcuts. Business
leaders like Bill Gates and many others like him are
not smart talking businessmen but have tasted
success through grit and persistence and exhibit a
great deal of integrity in their work. Initially when
we started, the industry had a terrible reputation and
I would almost be like an outcast in conferences. But
over the years we turned things around exponentially
and have created value not just for GMS but for the
ship recycling industry as a whole. Dr Sharma about
his own journey does modestly say that he was at the
right place at the right time but also makes it clear
that it has been persistence that finally paid off.
GMS recently invested in an Indian Super
League team, what drove you to Indian football?
I have been away from India for many years now and
I had wanted to give back to the country in some way
or the other. India is a country of over a billion people
yet the country's performance in global sports such as
football has been short of what the youth of India are
capable of. I have played a lot of cricket back in the
days and do have a soft corner for sports. My son,
who is also an athlete, discussed about the investment
proposal with me and even he was quite keen on
investing in the growth of football in India, so Delhi
Dynamos - representing the capital city of India in
football - seemed like the obvious choice.
Initially when we started, the
industry had a terrible
reputation and I would almost be
like an outcast in conferences.
But over the years we turned
things around exponentially and
have created value not just for
GMS but for the ship recycling
industry as a whole.
“
STEEL 360 INDIA AUGUST 2017 45
THE BEGINNING
Hailing from the Western Indian state of Gujarat Dr.
Sharma grew up in Bhavnagar, not far from the
unofficial ship breaking capital of the world, Alang
and thus was familiar with the business. However,
his tryst with ship breaking did not begin from
Gujarat, Dr Sharma rather would have to travel
halfway around the world to finally encounter his
true calling, while teaching in America.Capitalizing
on one opportunity after another from the
basement of his house in the US, Dr Sharma
established an empire that now stretches from
finance to owning its own fleet of ships.
While talking about his first step into the industry
Dr Sharma shared, I had people in Gujarat asking to
explore prospects to buy ships from the US for quite
some time, they would tell me you are so close to
Washington why don't you start buying ships and I
would reply that I simply dint have the money or
knew anything about ships. In Dr Sharma's
narration he did start actually pondering about the
possibilities and then finally found a company in
United Kingdom which was willing to lend me the
money. “I found out that the United States Maritime
Administration was looking to sell a few obsolete
naval ships and I immediately saw an opportunity”
Dr Sharma exclaimed. He bought 6 out of 8 ships in
the very first year of his business and subsequently
became the largest buyer.
Back in early 90s how strong was the industry and
demand?
Back then ship recycling was just beginning to grow in
Alang. People started getting aware of a business
opportunity. The industry was being shored up by
people who had little understanding about the field and
even bakers and restaurant owners were getting into
ship recycling to get a piece of the pie. However since
then Alang in particular has come a long way. Today
THE JOURNEY
A year later Dr Sharma was invited to Russia to
explore the possibilities of a similar deal to procure
naval ships and it was the successful completion of this
deal that cemented Dr Sharma's place in the field.
According to Dr Sharma he dealt with naval ships
between 1992 and 1996. “I knew very little about the
industry at that point in time while I was still working
out of my home. I chose to sell only to Alang initially as
my brother was there and had quite a few trade
sources”, Dr Sharma added. “It was only after 1996
that I planned to resign from my job after I had
established the business to some extent” Dr Sharma
asserted.
It was after this that Dr Sharma started developing
trade network in other major markets such as
Bangladesh, Pakistan, China and Turkey. He
established GMS in US, which stands as a global hub
for trade and transport. Talking further about the
company's journey, Dr Sharma shared that after GMS
was established in the industry as a cash buyer it was
only natural to venture into other avenues to further
propel growth. “We saw an opportunity after the 2008
banking crises as major banks had stopped lending to
small and medium sized fleet owners leaving a major
gap in the system” he shared. “We gradually started to
provide assistance to these ship owners and
companies as a collaboration and ventured into
financing and along with it also owning ships” he said.
S T O R YCOVER
DR SHARMA IN A CASUAL TETE-A-TETE WITH STEEL360, TALKS US THROUGH HIS RENDEZVOUS WITH DESTINY AND SHARES INSIGHTS INTO THE SHIP RECYCLING INDUSTRY.
those very people have grown into experts in ship
recycling and have established facilities that stand as an
example for recyclers around the globe. Today the
recyclers in Alang comply with industry best practices
and carry out their trade in accordance with the recycling
plans that we prepare. Our Green team members visit
these facilities on a regular basis and conduct audits and
extend technical assistance for greener, safer and more
profitable recycling.
44 STEEL 360 INDIAAUGUST 2017
How were Pakistan and Bangladesh poised back then?
In 1992 when I started out, I was a considerably small
player in the market and rather chose to sell only to the
recycling facilities inAlang. I did not have that many
connections in other countries. Because when you are new
in the market one tends to be more careful. However I was
aware that ship recycling had been going on in both
countries but I opted to diversify supply only after a certain
point of time.
Where do you see GMS going from here forth?
We have endeavored into various different verticals
including finance and ship ownership and plan to
consolidate our position in the industry. I have said this
time and again while speaking to the GMS team that our
job is not to sit on the sidelines and we rather need to be the
change. Our logo talks about leadership and we have these
values ingrained in our ethos. We have a global perspective
towards shipping and would want to influence positive
change. India government's acknowledgment of the Hong
Kong convention is an example how industry leaders such
as GMS can contribute towards developing a greener and
progressive industry.
How is the overall outlook for the industry in
medium term?
The outlook for the industry in the medium term looks
flatish, atleast during 2018-19. Primary reason behind this
is the aggressive scrapping of ships between 2011 to 2013.
In fact 2012 was the biggest year in history for ship
recycling and saw more than 1000 ships being scrapped.
After the global financial crisis in 2008 the market began
to resurge and a lot of ships were built. By 2012 due to
high cost even container ships which are supposed to run
for 30 years were being sold for recycling at just 8 years
of age.
Most countries are imposing strict standards on
quality of steel. How do you think this would impact
ship recycling?
The scrap from ship breaking is not used for purposes
which require superior grade of steel. The market that ship
recycling feeds does not need advanced or high strength
steel. In Bangladesh for example steel from ships is the
primary source in absence of blast furnaces. What needs to
be understood here is that sustainability is a key element
and ship recycling provides the world green steel. Today
yard owners in the United States are also pushing the
government to promote green steel.
As an entrepreneur yourself what do you think
is the key to success
I strongly believe that the harder you work the
luckier you get. There can be no shortcuts. Business
leaders like Bill Gates and many others like him are
not smart talking businessmen but have tasted
success through grit and persistence and exhibit a
great deal of integrity in their work. Initially when
we started, the industry had a terrible reputation and
I would almost be like an outcast in conferences. But
over the years we turned things around exponentially
and have created value not just for GMS but for the
ship recycling industry as a whole. Dr Sharma about
his own journey does modestly say that he was at the
right place at the right time but also makes it clear
that it has been persistence that finally paid off.
GMS recently invested in an Indian Super
League team, what drove you to Indian football?
I have been away from India for many years now and
I had wanted to give back to the country in some way
or the other. India is a country of over a billion people
yet the country's performance in global sports such as
football has been short of what the youth of India are
capable of. I have played a lot of cricket back in the
days and do have a soft corner for sports. My son,
who is also an athlete, discussed about the investment
proposal with me and even he was quite keen on
investing in the growth of football in India, so Delhi
Dynamos - representing the capital city of India in
football - seemed like the obvious choice.
Initially when we started, the
industry had a terrible
reputation and I would almost be
like an outcast in conferences.
But over the years we turned
things around exponentially and
have created value not just for
GMS but for the ship recycling
industry as a whole.
“
STEEL 360 INDIA AUGUST 2017 45
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