After achieving positive net assets for the first time in 40 years, Hindustan Shipyard (HSL) plans to expand its shipbuilding capacity by establishing its first satellite shipyard. The news has been confirmed by HSL Chairman and Managing Director Hemant Khatri, who said that the company has already approached the Andhra Pradesh state government regarding the expansion project.
Hemant Khatri stated, “We are working on the expansion of HSL with a satellite shipyard closely linked to the company here. This will help us achieve business and targets. At least 110 acres of land is required for the project. Initially, Moolapeta in Srikakulam district and the Kakinada coastline have been identified with formal site visits. We are trying to meet the government again to expedite the PPP mode project”.
According to reports, HSL achieved operating revenue of approximately 18 billion rupees (approximately US$205 million) in the 2024-25 fiscal year, with a target of reaching approximately 30 billion rupees (approximately US$342 million) within the next two years.
In April this year, it was reported that HSL had overcome supply chain challenges, liabilities and unresolved legacy issues, with its net assets turning positive for the first time in 40 years and reducing its liabilities by 12.53 billion rupees (approximately US$143 million).
Currently, HSL has signed strategic cooperation agreements with Lotus Wireless, South Korea’s Vinssen, DSEC, and other companies to help the company grow. At the same time, the shipbuilder is working with Japan’s M/S Toshiba to develop LTO batteries, and on this basis, it has completed the design of electric and hydrogen-powered tugboats and submitted a proposal for a hydrogen-powered ferry with a capacity of 150 people to the Indian Inland Water Transport Authority.
Hemant Khatri also pointed out that HSL is engaged in business in the fields of defense, green ships, merchant ships, and oil and gas. Specifically:
- Commercial ships: The Indian oil and gas industry requires 112 ships, including 30 medium-range product tankers, 24 large gas carriers and 4 offshore ships.
- Green ships: HSL plans to supply electric and hydrogen-powered tugboats to major Indian ports.
- Oil and gas: Seeking to provide two wellhead platforms for Oil India Limited and two jack-up drilling rigs for Oil and Natural Gas Corporation (ONGC).
Founded in 1941, HSL is India’s second-largest shipyard after the Cochin Shipyard. It is located adjacent to India’s nuclear-powered submarine-building hub and the Eastern Naval Headquarters. HSL’s location south of Visakhapatnam and its expertise in submarine conversion are key assets.
The shipyard, with three slipways and a 550-meter-long outfitting pier, is currently building support vessels for the Indian Navy and performing submarine modifications. Currently, the yard is focusing on reducing costs, improving productivity, and fostering innovation.