Our client, a subsidiary of Dubai World had invested over AED100m (cUS$30m) in a new venture to largely develop ambient pressure submarines. After substantial investment, including erecting of a state of the art manufacturing facility, there had been no return on investment achieved. We were tasked, along with selected key management of the Group, to come up with alternative plans to generate returns for the facility and thereby reduce the cash burn.
Our task involved:
- Critical evaluation of viability of any “submarine” related products in existence – including whether the design and manufacturing process would obtain the necessary maritime approvals.
- Managing daily cash burn and outstanding purchase commitments.
- Managed integration of new business into facility (with incumbent problems) – including development of a business plan with funding requirements.
- Managed existing projects to ensure they would be completed – including achieving necessary maritime approvals.
- Recruited new experienced management to ensure success of business.
We were able to successfully shelve the vast majority of the submarine projects and minimised further exposure of the group. We integrated a luxury yacht building business (Palm Marine) into the facility and recruited a successful New Zealand Managing Director. We were able to complete 3 different yachts under extreme time frames for the Dubai boat show (one pictured above) and sold over 8 at the show as a result. The business plan developed obtained the necessary funding from Dubai World board to continue in operations.