$500-million boost for India shipbuilding as Cochin Shipyard, HD Hyundai Group advance JV talks

KOCHI : The proposed venture, being structured with equal participation from both sides, signals a potential breakthrough in India’s long-standing ambition to emerge as a serious shipbuilding nation alongside established leaders such as China, South Korea and Japan.

Cochin Shipyard Limited is in advanced talks with South Korea’s HD Hyundai Group to establish a $500-million shipbuilding joint venture in Kochi, marking the first time a global shipbuilding major is directly investing in core shipbuilding infrastructure in India, Mint reported on Tuesday.

The proposed venture, being structured with equal participation from both sides, signals a potential breakthrough in India’s long-standing ambition to emerge as a serious shipbuilding nation alongside established leaders such as China, South Korea and Japan, Mint said. The timing is significant, with Asian shipyards currently operating at full capacity and order books stretching years ahead.

Mint said the partnership will involve HD Korea Shipbuilding and Offshore Engineering (HD KSOE), the shipbuilding arm of the HD Hyundai Group. CSL chairman and managing director Jose VJ told Mint that a CSL delegation is set to visit South Korea this month to finalise discussions. Representatives from HD Hyundai have already conducted site inspections and preliminary evaluations in Kochi.

Jose said the agreement is expected in the second half of 2026, with an initial investment of about Rs 4,500-5,000 crore to build a ship block fabrication facility near CSL’s existing yard, Mint reported. The planned facility will be located close to CSL’s 310-metre dry dock in Kochi.

A block fabrication facility produces large hull sections that are later assembled in a dry dock. Mint reported that the proposed unit will come up on around 80 acres leased to CSL by Cochin Port Trust in Kerala. With a projected annual output of 120,000 metric tonnes, the facility is expected to create about 2,000 direct jobs, while also supporting substantial indirect employment across MSMEs, logistics networks and ancillary industries.

By combining Hyundai’s design expertise, advanced production systems and global order access with CSL’s infrastructure, the venture aims to enable construction of larger and more sophisticated vessels, Mint said. These would include cargo ships, container vessels, tankers, dry bulk carriers, MR tankers, Panamax vessels and multipurpose ships.

Mint reported that very large crude carriers (VLCCs) are not part of the initial blueprint due to current infrastructure limitations. However, the segment could be considered later, depending on market dynamics and capacity expansion.

CSL plans to utilise its recently commissioned 310-metre dry dock – capable of handling ships up to 300 metres in length – to build larger vessels such as Suezmax tankers, container ships and Capesize bulk carriers. The dry dock, inaugurated by Prime Minister Shri Narendra Modi in January 2024, can accommodate construction of up to six large vessels annually, Mint noted.

A senior CSL executive told Mint that the collaboration is expected to deliver the scale and technological capabilities required for high-volume hull manufacturing using thousands of tonnes of steel. The goal is to move toward double-digit annual ship production to cater to both domestic and international markets.

The report added that the initiative aligns with a broader push by the government to strengthen India’s shipbuilding ecosystem through international partnerships. Discussions are also ongoing with other companies in Japan and South Korea to explore similar ventures in different regions. Queries sent by Mint to HD Hyundai Group and the ministry of ports, shipping and waterways remained unanswered at the time of publication.