South Korean shipbuilding giant HD Hyundai Heavy Industries (HHI) is looking to set up a shipyard in India and has already made a visit this month to scout for potential sites, people aware of the developments said.
“HD Hyundai Heavy Industries came down to India earlier this month to assess possible sites for a shipbuilding facility,” one person cited above said.
“They have a shipyard in South Korea and are now very keen to build one in India to cater to the local demand.”
The company, which is among the world’s largest shipbuilders and commands around 10% market share as per their website, had a delegation visit Thoothukudi and Cuddalore in Tamil Nadu and met executives at L&T to explore a tie-up, sources added. L&T has a mega shipyard in Kattupalli for shipbuilding as well as retrofitting and conversions.
Not just Tamil Nadu, the company is also in talks with other strong port states. “The competition between states is very intense now,” another person said. “It is not just in talks with Tamil Nadu but also Andhra Pradesh and Maharashtra, who are also courting the company aggressively.”
Queries sent to HD Hyundai Heavy Industries and L&T remained unanswered as of press time Wednesday.
In December last year, an Indian delegation led by secretary T.K. Ramachandran of the ministry of ports, shipping and waterways visited South Korea’s major shipyards to seek cooperation in boosting India’s shipbuilding industry.
Reports suggested that the delegates met with officials in Seoul from Korea’s top three shipbuilders including HD Hyundai. “HHI is planning to tie up with a shipyard in India with whom they can collaborate and utilize more market share of ships being built in India,” a shipping industry veteran who did not wish to be identified said. “They will also share information about the technologies utilized for building the latest ships and will give the Indian shipbuilding ecosystem access to various contracts HHI has with many equipment makers.”
The company’s possible India foray comes at a time when there’s been a concerted push by the government to strengthen India’s position in global shipbuilding. India holds less than 1% of global shipbuilding market but aims to break into the top 10 by 2030 and top 5 by 2047.
The government has planned to establish a new shipping company to expand its fleet by at least 1,000 ships within a decade. This initiative aims to cut foreign freight costs by one-third by 2047 and increase trade revenue, with joint ownership involving state-run corporations and foreign firms.
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