Top Players and Recent Developments in India Shipbuilding Market

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Top Players and Recent Developments in India
Shipbuilding Market
The Indian shipbuilding industry is characterised
by high growth potential and
strategic importance. As of 2021, India holds
over 30 of the global market share in
the ship-breaking industry and boasts the largest
ship-breaking facility globally at
Alang. The industry has witnessed signi?cant
growth, with the global shipbuilding
market poised to increase from USD 150 billion to
USD 180 billion by 2030.
The Indian shipbuilding sector has shown
remarkable progress, accounting for 1
of the global shipbuilding industry with an
annual turnover of around US 1.3 billion
in 2010. Despite this growth, India's share in
world exports remains around 2.5,
highlighting the immense potential for further
expansion and market penetration.
Top Players in India Shipbuilding Market
The top players in the shipbuilding industry in
India include

• Mazagon Dock Shipbuilders Limited (MDL) Known
  for building warships,
• submarines, and offshore platforms, MDL is a key
  player in India's defence sector, contributing
  signi?cantly to the nation's naval capabilities.
• Cochin Shipyard Limited (CSL) Headquartered in
  Kochi, Kerala, CSL is one of India's leading
  shipbuilding and maintenance facilities,
  constructing diverse vessels including tankers,
  bulk carriers, offshore support vessels, and
  more.
• Garden Reach Shipbuilders Engineers Ltd (GRSE)
  Located in Kolkata, West Bengal, GRSE is
  renowned for its diverse portfolio of ships,
  including frigates, corvettes, and patrol
  vessels, with a focus on indigenization and
  self-reliance.
• Hindustan Shipyard Limited (HSL) Based in
  Visakhapatnam, Andhra Pradesh, HSL is a premier
  shipbuilding and repair yard with a strong
  presence in both commercial and defence sectors,
  constructing bulk carriers and offshore support
  vessels to naval ships and submarines.

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5. Alcock Ashdown (Gujarat) Ltd Located in
Bhavnagar, Gujarat, Alcock Ashdown is a renowned
shipbuilding and ship repair company,
contributing to India's shipbuilding landscape.
These companies are shaping the maritime industry
in India, driven by factors such
as a rich seafaring history, a vast coastline,
skilled workforce, advanced facilities,
and a focus on innovation and quality. They
specialise in a wide range of vessels,
including commercial ships, offshore support
vessels, naval ships, submarines,
warships, bulk carriers, and specialised vessels
like tugs and patrol boats.
What are the recent developments in the shipbuildi
ng industry in india?
Recent developments in the shipbuilding industry
in India include

1. Increased Demand for Commercial Vessels The
   Indian shipbuilding industry is experiencing a
   surge in demand for commercial vessels from
   Europe, France, Greece, and the Middle East
   countries. This uptick in demand is attributed
   to the conversion of diesel ships into green fuel
   vessels and the growing value of the 'Make in
   India' brand, signalling a positive turnaround
   for the industry.
2. Market Expansion and Global Presence Indian
   shipbuilding companies are tapping into global
   requirements, with India currently accounting for
   about 20 of the market demand for commercial
   vessels worldwide. This indicates a growing
   presence and competitiveness of Indian
   shipbuilders on the global stage.
3. Order Acquisition Mazagon Dock Shipbuilders Ltd.
   (MDSL) secured an order from Denmark for three
   commercial vessels worth ?350 crore, showcasing
   the company's capabilities and competitiveness in
   the international market.
4. Diversi?cation of Shipbuilding Portfolio The
   shift towards constructing more commercial ships
   is evident, with only a small percentage of
   vessels built by Indian shipbuilders being
   defence-related.

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These recent developments underscore the positive
momentum and growth
trajectory of the shipbuilding industry in
India, highlighting opportunities for
expansion, innovation, and global competitiveness.
What are the challenges faced by the Shipbuilding
market in India?
The challenges faced by the shipbuilding market
outlook in India include

• Scalability The industry struggles with high
  dependence on old ships due to constraints in
  investment capacity for acquiring new ships.
• Cost E?ciency High interest rates on working
  capital in India compared to competing
  countries, along with customs duties of about 35
  on capital equipment required for shipbuilding,
  impact the cost e?ciency of Indian shipyards.
• Productivity Optimization Limited investment in
  research and development for ship designing and
  innovation, non-availability of organised
  component and service supply manufacturers, and
  dependence on imports for critical raw materials
  like high-quality steel plates hinder
  productivity optimization in the shipbuilding
  industry.
• Quality Excellence The industry faces challenges
  related to the lack of basic skills like welding
  and ?tting, inadequate skills and infrastructure
  for conducting research in ship designing and
  technology, and the inability of smaller
  suppliers to keep pace with rising quality
  standards.
• Sustainability Challenges in the shipbuilding
  industry in India include the absence of a
  strong ancillary industry, an inverted duty
  structure, and a lack of synergy between public
  and private shipyards.
• Conclusion

To thrive in the global market, Indian
shipbuilders must focus on enhancing
scalability through streamlined regulatory
processes, improving cost e?ciency by
addressing high interest rates and customs
duties, optimising productivity through
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investments in RD and infrastructure, and
achieving quality excellence by upskilling
the workforce and fostering innovation.