KOCHI : Pinning its hopes on the Union Shipping Ministry’s demand aggregation initiative to centralise India’s shipbuilding requirements, Cochin Shipyard Limited (CSL) has submitted bids under the newly floated Bharat Container Shipping Line (BCSL) consortium to build various types of vessels, including tankers. Jose V.J., Director (Finance) of CSL, told businessline that the consortium was formed to reduce India’s dependence on foreign shipping lines and cut freight outgo, which currently stands at around $75 billion annually, largely paid to foreign-flagged vessels for crude oil imports.
It is estimated that India would require around 430 ships over the next 10 years, involving an estimated investment of ₹2 lakh crore, he said.
Against this backdrop, the Centre has launched the demand aggregation initiative to consolidate shipbuilding requirements of the four major PSU oil marketing companies, ONGC and SCI, with these ships to be built in India. The initiative is expected to benefit shipyards across the country.
Jose, who is also holding additional charge as Chairman and Managing Director, said CSL is well positioned to capitalise on the opportunity with a ₹6,000-crore capex plan and its newly commissioned large dry dock facility.The Ministry’s initiative would strengthen the domestic shipbuilding ecosystem as also envisioned under the Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047, which aim to elevate India from its current global shipbuilding market share of less than 1 per cent to the 10th position by 2030 and fifth by 2047.
“We already have export orders worth ₹7,300 crore. With shipbuilding/repair facilities in Malpe, Mumbai, Kolkata, the Andaman and Nicobar Islands, and an upcoming facility at Vadinar, we are strategically positioned to undertake commercial shipbuilding and ship repair orders for both domestic and export markets,” he said.
CSL also plans to establish a steel block fabrication facility near International Container Transshipment Terminal, Vallarpadam in Kochi with an investment of around ₹4,000 crore.
The company is also investing in a 72-year-old European ship design firm –Conoship — specialising in short-sea vessels, a move expected to strengthen CSL’s position as a preferred shipyard for overseas clients.
In addition, CSL has formed a joint venture with HBL Engineering Limited, Hyderabad to develop marine battery systems. The venture aims to localise marine battery solutions and energy management systems for ships, which are currently imported.
With an order book of ₹22,300 crore, CSL posted its highest-ever turnover of ₹5,022 crore in FY26 and a profit after tax of ₹717 crore. Backed by strong demand, the shipyard is targeting 12-15 per cent growth in the next fiscal.
Jose added that the ongoing West Asia crisis has disrupted supply chains and increased logistics costs, as the shipbuilding industry relies heavily on imported components, including propulsion systems and engines.
Source : BL
