Hyundai Heavy Industries Plans Shipbuilding Facility in Tamil Nadu – A Major Boost for India's Maritime Sector

Chennai: South Korean shipbuilding company HD Hyundai Heavy Industries is reportedly planning to establish its shipbuilding facility in India, specifically in Tamil Nadu.

Hyundai is one of the largest shipbuilding companies operating in South Korea. The company has been planning to set up its shipbuilding yard in India for a long time. Now, accelerating this project, Hyundai is conducting studies to identify the most suitable locations in India for establishing its shipbuilding facility.

Recently, representatives from Hyundai Heavy Industries visited India for this purpose. They conducted on-site inspections in Tamil Nadu’s Cuddalore and Thoothukudi regions to assess the feasibility of setting up shipbuilding facilities there. Currently, L&T is the only company in India operating a shipbuilding and repair facility in Kattupalli. Reports suggest that Hyundai may initially enter into a joint venture with L&T to establish its first shipbuilding yard in India.

Hyundai holds a 10% share in the global shipbuilding industry. The company has personally inspected two locations in Tamil Nadu and is also exploring potential sites in Andhra Pradesh and Maharashtra for setting up shipbuilding facilities. At present, the number of shipbuilding yards in India is extremely low, with India's contribution to the global shipbuilding industry being less than 1%. The Indian government has set a target to change this scenario by 2030.

In 2023, a delegation led by Ramachandran, Secretary of the Ministry of Ports, Shipping, and Waterways, visited South Korea and invited shipbuilding companies there to set up their facilities in India. Globally, many countries have implemented stringent environmental regulations, leading to an increase in demand for cargo transportation via ships.