HD Hyundai Eyes Shipyard Expansion in India
HD Hyundai Heavy Industries (HHI), a leading South Korean shipbuilding company, is making significant strides towards establishing a shipyard in India. Earlier this month, a delegation from HHI visited potential sites in Thoothukudi and Cuddalore, Tamil Nadu, as part of their exploration for a new facility. This move is part of HHI’s strategy to tap into the growing local demand for shipbuilding and enhance its global presence.
Site Visits and Collaborations
During their visit, HHI representatives engaged in discussions with executives from Larsen & Toubro (L&T), which operates a major shipyard in Kattupalli. The talks focused on potential collaboration opportunities that could benefit both companies. HHI’s interest is not limited to Tamil Nadu; they are also considering locations in other coastal states, including Andhra Pradesh and Maharashtra, which are actively vying for the company’s investment. A source familiar with the discussions noted, “The competition between states is very intense now.” This competitive landscape reflects India’s ambitions to boost its shipbuilding capabilities and attract foreign investment in the sector. HHI’s plans align with the Indian government’s goal to increase the country’s share in global shipbuilding, currently under 1%, aiming for a top 10 ranking by 2030.
Strengthening India’s Shipbuilding Sector
The potential establishment of HHI’s shipyard in India comes at a time when the Indian government is keen on enhancing its maritime industry. In December 2023, an Indian delegation, led by T.K. Ramachandran, the secretary of the ports and shipping ministry, visited South Korea to explore collaborative opportunities with major shipbuilders, including HHI. Industry experts believe that HHI’s entry into the Indian market could significantly impact the local shipbuilding ecosystem. A veteran in the shipping industry stated, “HHI is planning to tie-up with a shipyard in India to increase their market share.” This partnership would not only facilitate technology sharing but also provide Indian shipbuilders access to contracts with various equipment manufacturers.
Future Prospects and Government Initiatives
The Indian government has ambitious plans to establish a new shipping enterprise, aiming to expand its fleet by at least 1,000 vessels over the next decade. This initiative seeks to reduce international freight costs by one-third by 2047 and enhance trade earnings through partnerships between government entities and foreign companies. As demand for ships rises due to increasing environmental regulations and trade growth, the need for expanded shipbuilding capacity becomes more pressing. An industry expert highlighted that existing shipyards are currently operating at full capacity, indicating a strong market for new entrants like HHI. The company’s presence in India could lead to increased investment in advanced technologies and bolster confidence among ship owners in local builders.
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