Indian Shiprepair Industry | Shiprepair Consultants | Ship Repair | Shipyard

Indian Ship Repair Industry

Ship repair is an evergreen industry as all ships require periodic maintenance. India is strategically located in the Indian Ocean and hence, many ships from the nearby trade routes call on Indian ports. This means that there is a lot of potential for shiprepair industry in India. However, currently shiprepair for these is primarily undertaken in Dubai Dry docks, Singapore, Bahrain and Colombo dockyards.

Indian ship repair industry is moderately regulated, with the shiprepairs being carried out by SRUs (Ship Repair Units) which operate under licenses from DG Shipping. The license not only gives permission to carry out shiprepair but also gives some benefits in the form of custom tax exemptions and so on.

Market Potential

The global ship repair market is estimated to be worth $ 10 to 12 billion, with Singapore hogging 20% share and India on the other hand, has only a share of about $100 million.

India is located strategically on the international trade route, it can attract ships plying from west to east in the trade route for its shiprepair activity. This represents increasing market potential for the shiprepair business, as ship owners prefer to repair their ships without deviating from their trade routes as much as possible. But due to lack of infrastructure and focus, the shiprepair industry is not able to reap the benefits. The shipyards involved in shiprepair such as Cochin Shipyard and Hindustan Shipyard have done well in the shiprepair business in the past.

Another reason for high repair potential is the age profile of Indian fleet. As can be seen in the diagram, almost half of the Indian flag fleet is older than 20 years. Older ships require more frequent and extensive shiprepair and maintenance. This translates into large opportunity for a Shiprepair yard in India.

Mantrana Maritime Advisory provides

Business Scan & Market Study – Indian Shiprepair Industry

Overview of Global Shiprepair Market
Market Dynamics of Shiprepair Industry
Indian Shiprepair Scenario
Opportunities in Indian Shiprepair Industry
Market Potential of Indian Shiprepair
Identify market segments for various types of vessels namely Tankers, Bulk Carriers, Offshore Rigs, Offshore Supply Vessels, Tugs, Barges, Mini Bulk Carriers, etc
Key Players operating in India

Land/Location Assessment

Assess the location from Shiprepair Market Perspective
Identify the types of Ships, that could come for repair
Assess & Evaluate land for suitability for Shiprepair yard
Assess Draft, Connectivity, Labour availability, etc

Technical Study

Infrastructure required for Shiprepair yard
Preliminary layout of repair yard
List of equipments and machinery
Technical capability planning
Project scheduling & planning
Suggest names of companies for Technical/Marketing Tieup/ JV

Regulatory Requirement

List of Permission required for setting up shiprepair yard
Classification & Statutory requirements while repair of ships
Permission as "Ship Repair Unit" from DG Shipping

Financial Study

Capital Expenditure
Phasing of investment to reduce Capex in initial stage
Operational Expenditure
Revenue Forecast
Equity required (how much & when)
Financing options, Sources, Debt/Equity ratio etc.
Break-even analysis & ROI

Profile of Indian Ship Repair Industry

Detail

There are a total of 35 SRU (Ship Repair Units) registered with the Director General of Shipping of which only 7 SRUs namely - Alcock Ashdown & Co Ltd., Chennai Port Trust, Cochin Shipyard Limited (CSL), Garden Reach Shipbuilders & Engineers Ltd. (GRSE), Hindustan Shipyard Limited (HSL), Mumbai Port Trust (MbPT) and Mazagaon Dock Limited (MDL) have been given the permanent approval as SRUs.

The major SRUs in the country are CSL, HSL, Western India Shipyard, MDL, ABG shipyard, etc. Western India shipyard is the only shipyard in India, which is dedicated to ship repairing activity. Other shipyards usually have shipbuilding and repair facilities in the same. Sometimes these facilities and their supporting infrastructure overlap.

The largest dry docking capacity in India belongs to CSL (125,000 DWT) followed by HSL (74,000 DWT). The maximum size of ship that has been repaired in India is LOA 333.12m, beam 60m, molded depth 30.4m.

Future Outlook

Detail

In view of the uncertainty of shipbuilding beyond 2012, Indian shipyards are gearing up to tap into the shiprepair market. Bharati Shipyard is set to carry out shiprepairs using the floating dock it acquired from Swan Hunter shipyard. With a view to realize its 11th five year plan targets, the government will look to fully utilize the 13 dry docks and 1 floating dock at the various port trusts. It is proposed that CSL and HSL be upgraded to world class standards, which will require an investment of Rs 10 billion.