As the second-largest ship owner in the world by fleet size develops a non-marine portfolio that provides more stable and sustainable cash flows than the extremely volatile shipping industry, Japan’s Mitsui O.S.K. Lines, Ltd (MOL) announced that it will invest in an Indian logistics startup “very soon” after investing “slightly less than ₹2,000 crore” for minority stakes in commercial real estate projects that are upcoming in Gurgaon and Chennai.
In 2021, MOL launched MOL Plus to invest in startups pertaining to its primary shipping and logistics operations. In 2024, MOL Switch was established to invest in renewable energy and sustainability projects. MOL Plus has established a department in India to investigate potential investments in local businesses. According to MOL, the size of the ticket for these purchases would rely on the type of clean tech businesses that are likely to attract a larger investment.
The Japanese fleet owner will co-invest in the startups rather than totally buy them out. With 13 ships registered under the Indian flag, 10 of which are located in the Domestic Tariff Area (DTA) and three of which are located in the Gujarat International Finance Tec-City (GIFT City), MOL is the fourth-largest ship owner in India in terms of fleet size. Bharat Petroleum Corporation Ltd. (BPCL) and other state-owned energy firms are involved in the deployment of crude oil and gas carriers.
When its partners require additional ships to carry their energy raw materials or completed goods, MOL intends to expand the Indian fleet. MOL would consider “collaborations” with India’s state-run companies in order to grow, as the Middle East, South Asia, and India are becoming an important part of the regional strategy outlined in the management plan known as “Blue Action 2035.” MOL is changing from a shipping-only business to a multi-sectoral social infrastructure organization as part of Blue Action 2035.
