Ejvind Vgg Own Man in India

The Indian Ship building Industry

DIBD OMII

Own Man In India

April 2012

Ejvind Vgg Own Man in India

Introduction to the Indian shipbuilding industry

Current and future market situation Main segments Key players in the industry SWOT

Ejvind Vgg Own Man in India

Current and future market situation

The Indian shipbuilding industry has around 28 shipyards comprising of 8 public sector, 6 yards under central and 2 under state governments with around 20 private shipyards. The Indian shipbuilding turnover for both the private and public shipyard sector reached 1.6 billion dollars in 2010. Government owned Cochin Shipyard Limited and Hindustan Shipyard Limited are the major shipyards in India.

Private shipyards are more in numbers, but are severely limited by capacity and size of ship they can build.
The Indian ship building industry does not only produce Indian and International cargos, but also provides facilities such as ship repairing. The Indian shipbuilding industry is estimated to double from its 2010 revenue of $1.6 billion in the next five years.

Ejvind Vgg Own Man in India

Main segments in the Indian shipbuilding industry

Shipbuilding industry is mainly divided into the following: New ship building yards New building ship yards are mainly active in building commercial and defence vessels Commercial vessels are mainly built for European owners and Defence vessels are for Indian Navy Ship yards mainly build vessels for European owners Major yards are ABG Shipyard, Bharti Shipyard, Modest, Pipavav Shipyard, L&T Shipyard, Cochin Shipyard, etc Ship repairing Indian ship repairing industry consists of around 7 ship repair units (SRUs), namely Alcock Ashdown & Co. Limited, Chennai Port Trust, Hindustan Shipyard Limited, Mumbai port Trust, Cochin Shipyards, Garden Reach Shipbuilders and Mazgaon Dock Limited who have been given the permanent approvals as SRUs.

Ejvind Vgg Own Man in India

Key government players in the Indian shipbuilding industry

Company name Activities Office locations Total turnover in India in USD $ 279 million 132 million 616 million 205 million 190 million Cochin Shipyard Hindustan Shipyard Mazgaon Docks Goa Shipyards Garden Reach Shipyard Ship building, ship repairing Ship building, ship repairing Ship building Ship building, ship repair and engineering Ship building, ship repair South India, Tamil Nadu South India, Andhra Pradesh West India, Maharashtra West India, Maharashtra East India, West Bengal

Hooghly Docks

Ship building, ship repair

East India, West Bengal

75 million

Ejvind Vgg Own Man in India

Key private players in the Indian shipbuilding industry

Company name ABG Shipyard private Bharati Shipyard Pipavav Shipyard Chowgule & Company Limited L&T Shipyard Tebma Shipyard Activities Ship building, ship repair Ship building, ship repair Ship building Ship building, ship repair Ship building, ship repair Ship building, design Office locations West India, Maharashtra West India, Maharashtra West India, Maharashtra West India, Maharashtra South India, Tamil Nadu South India, Tamil Nadu Total turnover in India in USD $ 407 million 284 million 157 million 110 million 60 million 69 million

Ejvind Vgg Own Man in India

Major shipyards in India

ABG Shipyard Alcock Ashdown L&T Shipyard Pipavav Shipyard

Garden Reach Shipyard Hooghly Docks

Bharati Shipyard Mazgaon Dock

Hindustan Shipyards

Bharati Shipyard Chowgule & Company Goa Shipyard

Cochin Shipyard Tebma Shipyard

Note ABG has 2 shipyard in Gujarat Bharati Shipyard has 3 shipyards in Maharashtra

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Scandinavian cases in India (2/2)

Viking Life Saving Equipments A/S SELCO A/S

Viking is a Denmark based company founded in 1960. Viking manufactures life saving equipments such as life raft, lifejackets, fire fighting equipments, etc and supplies to industries such as marine, Viking started its operations in India since 2010 with their office in Mumbai. Viking is a known brand in India from last decade catering to various ship industries. Viking has acquired one of its close competitor Hemmingfire in March 2010 who was into fire cloth manufacturing. Viking has a group turnover of around USD 210 million

SELCO is a Denmark based company founded in 1960. SELCO has subsidiaries in China, India, Middle East and South East Asia. SELCO manufactures electronic equipments such as electronic control, alarm systems and supplies to industries such as marine, engineering, power control, etc. SELCO started its operations in India since 2009 with their office in Mumbai. SELCO imports their products from Denmark and sells in India.

Ejvind Vgg Own Man in India

SWOT Analysis of the Indian shipbuilding industry

Strengths Government allowing 30% cash subsidies to new building yards in India. Large coastline for ships Strong labour force Low cost labour Weaknesses Lack in building high capacity ship yards Lack of trained engineers and skilled labours Government support and initiative for shipbuilding is negligible. No financing support to shipbuilding companies from the government Threats Order cancellation in new ship building due to untimely delivery by ship yards. Lack of government recognition Shipbuilding industry do not have countrywide presence. Lack of professionals and R&D facilities.

Opportunities Requirements of equipments and ancillaries in Indian new building shipyards. Demand for offshore oil exploration and production in Indian shores and abroad through collaborations. Increase in demand in India for offshore platforms and their repair facilities.

Ejvind Vgg Own Man in India

Danish contact in India

If you are interested to hear more about India and the rising shipbuilding industrys possibilities do not hesitate to contact: Ejvind Vgg director of the DI office in India: E-mail: ejv@di.dk Phone: +91 9930 562729/ +45 2728 0486 Annemette Samina Olesen assistant director of the DI office in India: E-mail: amso@di.dk Phone: +91 9930 562761/ +45 2728 2950