One of the biggest shipbuilders in the world, HD Hyundai Heavy Industries (HHI) of South Korea, intends to open a shipyard in India. This action is in line with India’s aspirational plans to develop its maritime infrastructure and emerge as a significant force in the world shipbuilding industry.
HHI has visited several locations in Tamil Nadu, particularly Thoothukudi and Cuddalore, and is in talks with several states, including Andhra Pradesh and Maharashtra, who are vying for the shipyard’s location.
The decision comes after an Indian delegation, headed by T.K. Ramachandran, the secretary of the Ports and Shipping Ministry, visited major shipyards in South Korea in December 2023 to discuss potential collaborations.
In order to meet local demand and grow its market share, HHI is eager to enter the Indian market. In order to benefit from technology exchange and access to international equipment contracts, the company intends to work with already-existing Indian shipyards, such as Larsen & Toubro’s Kattupalli shipyard.
Though it presently makes up less than 1% of the world’s shipbuilding, India hopes to be in the top 5 by 2047 and among the top 10 by 2030. In an effort to cut international freight prices by one-third by 2047, the Indian government has suggested creating a new shipping company to increase its fleet by at least 1,000 ships over the course of the next ten years.
Through technology exchange, increased investment in cutting-edge technologies, and increasing trust among ship owners in Indian builders, HHI’s arrival into India is anticipated to greatly improve the local shipbuilding ecosystem.
