HD Hyundai Heavy Industries (HHI), the giant South Korean shipbuilding company, has initiated plans to establish a shipyard in India, conducting site visits this month to explore potential locations.
The delegation from the company, which holds approximately 10% of the global market share in shipbuilding, visited Thoothukudi and Cuddalore in Tamil Nadu. They also held discussions with L&T executives regarding possible collaboration. L&T operates a substantial shipyard in Kattupalli that handles shipbuilding, retrofitting and conversions.
The company’s interest extends beyond Tamil Nadu to other coastal states.
“HD Hyundai Heavy Industries came down to India earlier this month to assess possible sites for a shipbuilding facility,” a source familiar with the matter told ET. “They have a shipyard in South Korea and are now very keen to build one in India to cater to the local demand.”
<p>HD Hyundai Heavy Industries plans<br></p>
“The competition between states is very intense now,” revealed another source. “It is not just in talks with Tamil Nadu but also Andhra Pradesh and Maharashtra, who are also courting the company aggressively.”
In December 2023, an Indian delegation, headed by ports and shipping ministry secretary T.K. Ramachandran, visited major South Korean shipyards to explore collaborative opportunities for enhancing India’s shipbuilding sector.
The delegation conducted meetings in Seoul with representatives from Korea’s leading three shipbuilding companies, including HD Hyundai.
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“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 potential entry of the company into India aligns with the Indian government’s focused efforts to strengthen the country’s position in global shipbuilding.
Currently, India accounts for under 1 percent of worldwide shipbuilding activities but has set targets to rank among the top 10 by 2030 and advance to the top 5 by 2047.
The administration has proposed establishing a new shipping enterprise with plans to grow its fleet by minimum 1,000 vessels within ten years. This plan seeks to reduce international freight expenses by one-third by 2047 and boost trade earnings through shared ownership between government-run entities and overseas companies.
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According to an industry expert, increasing environmental regulations and trade growth have created a higher demand for ships.
“The present yards are full, with order books and looking to expand capacity,” this person said. “HHI has tried setting up yards in the Philippines in the past but were not very successful. With Indian government emphasis on local ship building, they can utilise this opportunity of increasing their base in countries outside Korea.”
The expert emphasised that HHI’s presence in India would significantly impact the Indian shipbuilding sector through technology sharing, enhanced ship owner confidence in Indian builders, and increased investment in advanced technologies.
The HD Hyundai Group’s establishment dates back to 1947 by Chung Ju-yung, though the shipbuilding venture began in the early 1970s under his leadership.
Construction commenced in March 1972 on a coastal site that would develop into one of the world’s premier shipyards.
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Located along Mipo Bay in Ulsan, Korea, the Hyundai shipyard spans four kilometres. The facility’s shipbuilding division constructs various vessel types, featuring ten large-scale drydocks and nine ‘Goliath Cranes’. By 2023, they had delivered over 2,300 ships to 335 clients across 51 countries.
The company’s workforce comprises approximately 15,000 employees across production, engineering, management and administration departments. Recent financial reports indicate a substantial increase in operating profit to 705.2 billion won, quadrupling previous figures.