HD Hyundai has entered into a strategic partnership with the government of Tamil Nadu to build a new shipyard in India. This move is part of the South Korean shipbuilding company's plan to grow its presence in one of the fastest-growing maritime markets worldwide.
The agreement was signed on December 7 in Madurai, making HD Hyundai the chosen partner for shipyard development in Tamil Nadu, after the state was selected from five candidates by the Indian government. The signing ceremony included notable attendees such as Tamil Nadu Chief Minister M.K. Stalin, State Industries Minister T.R.B. Rajaa, and Choi Hannae, the head of corporate planning at HD Korea Shipbuilding & Offshore Engineering.
Thoothukudi in Tamil Nadu is seen as a top choice for the shipyard because its climate and rainfall are similar to Ulsan, Korea, where HD Hyundai Heavy Industries is based. The area already hosts major South Korean companies, including Hyundai Motor and Samsung Electronics, and plans for further investment in port infrastructure are underway.
This partnership is in line with India's "Maritime Amrit Kaal Vision 2047," which aims to rank the country among the top five shipbuilding and shipping nations. The Tamil Nadu government is prioritizing the establishment of a shipyard as part of its strategy to boost the economy. They are offering incentives, subsidies, improved infrastructure, and development of skilled talent to support this initiative.
In addition to shipbuilding, HD Hyundai is expanding its crane manufacturing in India through a deal with BEML (Bharat Earth Movers Limited), a state-owned company under the Indian Ministry of Defence. This partnership will focus on the design, production, and quality assurance for port cranes, with plans to supply goliath and jib cranes to local shipyards.
Earlier this year, HD Hyundai delivered a 600-ton Goliath crane to Cochin Shipyard and has been enhancing its presence in India through a partnership signed in July with Cochin Shipyard, which includes design support and workforce development.
An HD Hyundai official stated, “India is a market with strong growth potential, supported by the government’s commitment to developing the shipbuilding industry. We will keep expanding our cooperation with India in shipbuilding and offshore sectors, and aim to turn it into a new growth engine.”
India's shipbuilding industry has seen remarkable growth, with its market value jumping from around $90 million in 2022 to over $1.12 billion by 2024—a twelvefold increase. The sector is expected to continue growing at over 60% annually until 2033.
This initiative by HD Hyundai comes amidst a surge of international investment in India's maritime sector. In November, Maersk announced a $2 billion investment to expand APM Terminals Pipavav in Gujarat, while DP World committed $5 billion for projects in green coastal shipping, shipbuilding, and repair. Additionally, MSC Mediterranean Shipping Company revealed plans to deploy 12 vessels under the Indian flag following talks with Prime Minister Narendra Modi.
In early October, CMA CGM signed a letter of intent with Cochin Shipyard Limited to construct six dual-fuel LNG containerships in India. This marks the first order for LNG vessels from an Indian shipyard by a major international container shipping company, with deliveries scheduled between 2029 and 2031.
These private sector investments are supported by government initiatives, including a maritime development fund of 250 billion rupees ($2.9 billion) announced in February to provide long-term financing for India's shipbuilding and repair industry.
HD Hyundai’s expansion in India is part of a wider global strategy, which includes recent agreements with Huntington Ingalls Industries, the largest defense shipbuilder in America, and defense collaboration with Peru’s state-run SIMA shipyard for joint submarine development.