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ONGC's offshore crane business-I: Competitors play all kind of games
Apr 10: Supply and refurbishing cranes in ONGC platforms is big business and the it is riddled with all kinds of games.
8ONGC's attempts to get its large fleet of aging cranes refurbished has always been a controversial.
8There are critics who claim that buying new cranes is easier than refurbishing them. The company allows refurbishments if the cost is less than 75% of that of buying a new crane.
8Another controversial move is to allow these refurbishments on a nomination basis with the original equipment manufacturer.
8So the OEM ends up with a two fold advantage: It avoids going through an intensely competitive process to buy new cranes and it does good business extending the life of these cranes, which are usually for a period of 20 years. After a revamp, these can provide up to another 15 years of service.
8For suppliers, selling of cranes and then subsequently refurbishing them can be a lifetime business
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