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