How Hyundai's proposed $2B shipyard could boost India's shipbuilding sector
What's the story
South Korea's HD Hyundai, one of the world's largest shipbuilders, is eyeing a major investment in India's shipbuilding sector. The company plans to set up a mega-shipyard in Thoothukudi, Tamil Nadu. Although there has been no official confirmation yet, the investment could be close to $2 billion, according to Business Line.
Project rebranding
'SMITH Project' rebranded as 'Make in Tamil Nadu'
The initiative was previously known as the "SMITH Project" (Shipbuilding Make in India Together with Hyundai). However, at the Tamil Nadu Investment Conclave in Madurai, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) Vice President Hannae Choi announced a rebranding to "Make in Tamil Nadu." He emphasized India's potential and HD Hyundai's commitment to the country.
Agreement details
MoU signed for shipyard establishment
At the summit, HD KSOE officials led by Choi signed a Memorandum of Understanding (MoU) with Guidance Tamil Nadu MD Darez Ahmed. The MoU comes as HD Hyundai joins Cochin Shipyard and Mazagaon Dock Shipbuilders in their commitment to set up greenfield commercial shipyards in Thoothukudi. The two Indian companies have already pledged ₹30,000 crore toward this project, which is expected to create jobs for 55,000 people.
Expansion strategy
HD Hyundai's global presence and future plans
Choi also highlighted HD Hyundai's global footprint, with shipyards in Vietnam, the Philippines, and Saudi Arabia. He expressed his vision for a mega-shipyard in India, saying Thoothukudi's strategic location, favorable climate, and skilled workforce made it an ideal choice. The vision of building this shipyard will be realized with the cooperation of the Indian government, Tamil Nadu government, and HD Hyundai.
Policy introduction
Tamil Nadu's commitment to maritime manufacturing
The Tamil Nadu government has also expressed its commitment to maritime manufacturing. A statement from the office of Industry Minister TRB Rajaa said a shipyard will be built in Thoothukudi, which offers climatic and geographic conditions suitable for a world-class shipyard. The state is also set to introduce the proposed Tamil Nadu Maritime Manufacturing Policy soon.