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Indian Shipbuilding  

Shipbuilding

Shipbuilding is a globalized, technology and capital intensive industry, with high volatility.
Shipbuilding is a cyclical industry, where variables like fresh developments in the shipping industry, current market perception, government tax and reforms. Shipbuilding is a unique industry, because a ship is sold before the construction begins and each ship is custom made for the owner.

IThe lead time is anywhere between 1 year to 3 years for the delivery of a new ship. Orders are placed in anticipation of the ship’s future use. In many cases, companies even enter into a charter agreement in advance, which makes it absolutely imperative and critical for the shipyard to deliver within specified deadlines. Thus, delay in delivery not only affects the owner, but also the reputation of the yard where it was put on order, not to mention the financial aftermath. Hence, companies prefer to place orders with established shipyards with a good track record.

Indian Shipyards have an orderbook of close to 260 ships with aggregate value in the region of Rs.280 billion. Approximately, Rs.200 billion are export orders, while Rs.80 billion is for domestic shipping companies.

Majority of the orders placed at Indian shipyards are from European ship owners. Indian shipyards have built offshore supply vessels for leading offshore companies such as Deep Sea Supply, Bourbon Offshore, Lamnalco Group, Halul Offshore, Maridive Oil, etc. They have also built ships for leading international cargo carriers. Cochin Shipyard has built ships for Clipper Group. In addition, Indian shipyards have new-building orders from Precious Shipping of Singapore, Reederei Vogemann and Opielok Reederei of Germany, etc.

Indian Shipbuilding - Current Scenario
India has close to 32 shipyards including those owned by Central Government, State Government, Defense Ministry, listed and privately held. The following chart summarises the Indian shipbuilding industry, in terms of ownership of shipyards.
INDIAN SHIPBUILDING
Government Controlled
Private Sector
Central Government
State Government
Public Listed
Privately Held
Ministry of Surface Transport
Ministry of Defense

 

 

 

1. Cochin Shipyard

2. Hindustan Shipyard

3. Hooghly Dock

1. Mazagon Dock

2. Goa Shipyard

3. Garden Reach Shipyard

1. Alcock Ashdown

2. Shalimar Works

1. ABG Shipyard

2. Bharati Shipyard

3. Pipavav Shipyard

About 22: some of the leading ones are L&T, Chowgule, Tebma, Dempo, Shoft etc.
Despite the current downturn, Indian shipyards weren’t idle. Most new-building orders during recession were from government companies such as ONGC, SCI and other firms such as coast guard, navy, etc. The orders received during the shipping upturn period are due to be completed by 2011-12. Many orders are nearing completion and the ones due for delivery in 2009-10 are unlikely to be cancelled. Orders due in 2011-12 may be cancelled. However, this will not have an immediate impact, because the shipyards will be compensated with penalty fees for such cancellations.
+ Shipyards Booked till 2011-12 Detail
+ Expansion Plans Put on Hold Detail
+ Future Outlook Detail
+ Defense Detail
+ Offshore Detail
+ Indian Ship Owners Detail
+ Coastal Trade & Inland Waterways Detail
 
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