South Korea’s largest shipbuilding group, HD Hyundai, has reached a cooperation agreement with India’s Cochin Shipyard to strengthen its influence in the Indian and global shipbuilding markets. This cooperation marks the beginning of cooperation between the shipbuilding industries of South Korea and India, and it is expected that overall cooperation between the two countries’ shipbuilding industries will be further strengthened.
On July 6, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai Group’s shipbuilding business, announced that it has signed a comprehensive memorandum of understanding (MoU) on “long-term cooperation in the shipbuilding field” with Cochin Shipyard, India’s largest state-owned shipyard.
This is the first cooperation agreement between the South Korean shipbuilding industry and India. Through this cooperation, HD Hyundai plans to incorporate the “South Korean shipbuilding DNA” into the Indian shipbuilding industry and explore growth opportunities together with the Indian shipbuilding industry. HD Hyundai hopes to strengthen its influence in the Indian market, which has the largest population in the world, to further enhance the competitiveness of its global shipbuilding business.
HD Hyundai officials said, “This partnership will provide HD Hyundai and Cochin Shipyard with a better opportunity, and it will also be a turning point in promoting the realization of India’s national vision for the marine industry. HD Hyundai will leverage its accumulated technical capabilities and experience to support Cochin Shipyard in enhancing its global competitiveness, while exploring synergistic development with domestic equipment suppliers.”
It is worth noting that HD Hyundai and Cochin Shipyard have been in talks for some time. As early as November to December 2024, Shri T.K. Ramachandran, Deputy Minister of Ports, Shipping, and Waterways of India, and Madhu Nair, President of Cochin Shipyard, among others, visited HD Hyundai Heavy Industries’ Ulsan Shipyard, Hanwha Ocean’s Geoje Shipyard, and Samsung Heavy Industries’ Geoje Shipyard, and discussed further collaboration opportunities.
According to earlier reports by India’s Economic Times, HD Hyundai’s shipbuilding subsidiary HD Hyundai Heavy Industries and Cochin Shipyard’s joint venture shipyard has confirmed its location in the port city of Thoothukudi in the southeastern part of the Deccan Peninsula in Tamil Nadu, India. The joint venture shipyard will be responsible for building large vessels such as very large crude carriers (VLCCs), with an estimated investment of approximately 100 billion rupees .
However, HD Hyundai Heavy Industries was cautious in its statement at that time, saying, “No decision has been made regarding the joint venture with Kochi Shipyard.” Based on the comprehensive cooperation agreement signed this time, the joint venture shipyard between HD Hyundai Heavy Industries and Cochin Shipyard is very likely to proceed smoothly.
Currently, India has set a goal of becoming one of the world’s top ten shipbuilding countries by 2030 and the fifth largest shipbuilding power by 2047. The comprehensive agreement signed with HD Hyundai is in line with the Indian government’s marine industry cultivation roadmaps such as “Vision 2030 for the Indian Maritime Industry” and “Amrit Kal (Golden Age) Vision 2047” released in 2021 and 2023 respectively.
To achieve its shipbuilding goals, India will set up a marine development fund of about 250 billion rupees this year and expand policy support for its shipbuilding industry and marine infrastructure upgrades.
With full support from the national level, India’s shipbuilding industry is currently developing rapidly. Clarksons data shows that the size of India’s shipbuilding and repair market will increase from about US$90 million in 2022 to US$1.12 billion in 2024, an increase of more than 12 times, and is expected to maintain an average annual growth rate of more than 60% by 2033.