In a first of its kind initiative in the shipping industry, Captain Rajesh Unni, founder and managing director of Singapore-based Synergy Marine Pte Ltd, has distributed capital to a “significant number of employees”, making them shareholders of what is now the fourth largest ship management company in the world.
Captain Unni on Friday announced a new management structure for the 16-year-old company after global private investment firm Searchlight Capital Partners, LP announced it had purchased a minority stake in Synergy Marine for an undisclosed amount.
The new leadership structure, according to Captain Unni, aims to create “diversity in thought process” to walk the path of digitalization and decarbonization, two challenges facing the global shipping industry.
Synergy manages a fleet of approximately 500 vessels comprising the most complex LNG carriers (including floating storage units), LNG carriers, 20,000 twenty-foot equivalent units (TEUs) and container ships, as well as oil and chemical tankers , car transporters and bulk carriers. , employing more than 18,000 seafarers, more than 80 percent of whom are Indian nationals. It manages 25 offices in 13 countries.
With a focus on crew welfare, digitalization and eco-friendly policies, Synergy Marine is at the forefront of transforming the ship management industry.
Synergy provides shipowners with critical services, including full technical management (regulatory compliance, maintenance, provisioning and monitoring of remote systems), crew management (provisioning and training of seafarers and services such as payroll) as well as other maritime services (decarbonisation services, seafarer health and welfare, design and supervision of new construction and project management, including the installation of energy saving devices).
“In an industry where share sharing is not the norm, including a large number of employees as shareholders is a deliberate step in our journey,” he told ET Infra. in an interview.
The ‘concept’ of making employers shareholders of his company was on Captain Unni’s mind as soon as he started his business after a successful career at sea in which he took command of ships.
“From the day we took our first step together, the foundations of this organization have been built on immense care, relentless commitment and collective camaraderie that have stood us in good stead in our most difficult times. Over the years this has only gone from strength to strength, and I truly believe that Synergy’s story is one of partnerships where each of my team played their part far beyond anything that could have been expected. for them,” he continued.
“For me, the philosophy of partnership was the energy that ignited my personal leadership journey. From the start, I was clear that we built this organization together and that there is no way for me to claim the right to sit on it alone,” he remarked.
“It had to be at the right time. We had to walk a distance together, we had to ride out storms, and we had to build ourselves up to be a substantial force to be reckoned with. Today, as the world’s 4th largest ship management company with over 500 vessels to manage, we stand proudly united, rejoicing in light of our collective achievements and eager to cross new frontiers. I sincerely believe that there is no better time than this to make employees shareholders of the company”, he observed.
Managing around 500 ships also gave Captain Unni the “significant mass” to deploy the equity for employees.
Unni, who was named one of the 100 most influential people in shipping for 2020 and 2021 by Lloyd’s List, a leading London-based shipping industry publication, declined to be drawn into the details of the ship’s exit options. shares held by employees.
“I don’t know if the liquidity will come through an initial public offering (IPO) or when and if we attract more investors as we grow. There are many forms. We haven’t thought about which is that only way out for stock-holding employees,” he said.
Captain Unni emphasized that the company must continue to create value for its customers.
“All my life, I have always believed that there is an inextricable link between human connections and disruptive innovation. The power of partnerships will fuel ownership, diverse thought leadership and innovation which, in turn, will give us the courage to disrupt the industry. In the new maritime world, paradigm shifts in operating models will allow us to move from just a token service to decarbonization and digitization to take immediate action and become pioneers in creating a an industry that is both environmentally friendly and economically sustainable. Therefore, I view this step as a personal commitment in my lifetime, to create future leadership for the maritime industry which, with its heightened awareness, will truly be a force for good,” he asserted.
Crushing apprehensions about his role in the business under the new structure, Captain Unni said: “I am still in charge. Nothing will change from an organizational structure or how we deliver, but what will happen now is that we have diversity on the board to discuss how we can constantly creating more value for our customers”.
“Because otherwise we’re all in a traditional industry and if we continue to think traditionally we can talk about all the nice words like digitization and decarbonization, but we really have to follow the word, we have to execute and for that we need diversity in the thinking process,” he signed.
