As a world-leading shipbuilding organization HD Hyundai Heavy Industries (HHI) from South Korea seeks suitable sites within India to establish its future shipyard facility. The company has started site inspections in Tamil Nadu while negotiating with various states and industrial entities to fulfill India's objective of growing its presence in international shipbuilding.

HD Hyundai Heavy Industries (HHI) from South Korea intends to build a shipyard in India while maintaining its position as one of the world’s largest companies with a 10 percent market share. A group from HHI toured both Thoothukudi and Cuddalore in Tamil Nadu during this month to meet with L&T executives about possible joint projects at the Kattupalli shipyard.

The financial parameters of this investment have yet to be determined. Previous projects such as the 550 million USD Philippine operation led the company to consider an investment capital within the range of 100 million USD to 500 million USD. Lower labor expenses and government benefits create conditions which allow businesses in India to achieve higher profits. Additional cost reduction opportunities exist for the business because of its partnership with Larsen & Toubro. Shipyard projections rely on anticipated maritime development planning by the government to take advantage of its upcoming 1,000-vessel fleet expansion over the upcoming decade. The proposed project ensures both improved technology and financial benefits because HHI has committed itself to a final agreement.

Investment Competition Heats Up Among States

The shipyard project has been intensely targeted by Tamil Nadu while Andhra Pradesh and Maharashtra compete aggressively for the same opportunity. A confidential source described the state competition as extremely heated at present. The HD Hyundai company aims to enter India to fulfill local market requirements. After Indian Ports and Shipping Ministry Secretary T.K. Ramachandran led a delegation to South Korean shipyards including HD Hyundai in December 2023 the nation pursued manufacturing facilities at the port.

India's Shipbuilding Goals and Policy Initiatives

The shipbuilding industry of India plans to become among the top ten shipbuilding nations by 2030 and reach the top five positions by 2047. The Maritime India Vision 2030 together with Amrit Kaal Vision 2047 specifies that the national fleet should expand with 1000 new vessels during the upcoming ten-year period. India plans to reduce its dependence on foreign shipping costs which amounted to USD 110 billion annually in recent times by achieving a 30% reduction before 2047 to achieve annual savings of approximately USD 33 billion.

The government invests major funds into this initiative. During its 2025 Budget allocation the government established a Maritime Development Fund worth ₹25,000 crore which provided subsidized enduring financing. The revised Shipbuilding Financial Assistance Policy grants financial support of 20-30% for eco-friendly vessels along with specialized ships that can direct approximately ₹10,000-15,000 crore into shipbuilding facilities up to 2035.

According to an expert in the industry environmental regulations together with global trade expansion drives the demand for ships. “Existing yards are full, and capacity expansion is a priority. HHI previously attempted to set up operations in the Philippines but faced challenges. With India now prioritising local shipbuilding, this is an ideal opportunity for HHI to establish a base outside Korea,” the expert added.

Technology Collaboration and Strategic Partnership

HHI plans to work with Indian shipbuilding facilities because Indian vessel requirements keep escalating while expanding its footprint within the Indian market. The veteran of the shipping industry described HHI's future Indian market entry as positive, stating, “They will share advanced shipbuilding technologies and open access to key contracts with global equipment makers, enhancing India’s shipbuilding ecosystem.”

India's Shipbuilding Ambitions and Policy Drive

The establishment of a shipyard by HHI in India would trigger a transformation of the national shipbuilding sector through technology transfer programs and increased shipbuilder investment in advanced manufacturing systems. The coming decisions of this company will determine the future direction of India's maritime expansion and international shipbuilding opportunities.