Union Finance Minister Nirmala Sitharaman is set to present the entire Union Budget for the fiscal year 2024-2025 on 23rd July.
The defence sector is buzzing with anticipation, especially regarding advancements in shipbuilding. Industry experts expect substantial growth in the shipbuilding sector over the next five years.
According to the Maritime India Vision 2030, India aims to rank among the top 10 shipbuilders globally, with aspirations to break into the top five by 2047 as outlined in the Maritime Amrit Kaal Vision.
Currently, India holds the 20th position in the global commercial shipbuilding market, commanding a modest share of 0.05 percent.
Indian-owned and flagged ships meet approximately 5 percent of the nation’s total overseas cargo transport needs.
Furthermore, according to a few sources, aiming to transform India’s maritime sector, the shipping ministry has proposed the establishment of shipbuilding clusters on both the east and west coasts of India. This initiative aims to catalyse shipbuilding activities and drive economic growth in India.
The proposal details a strategic roadmap for developing these shipbuilding clusters, highlighting the selection of appropriate sites featuring waterfronts spanning 4-5 kilometers and land areas of at least 1,000 acres on each coast.
By collaborating with private entities and leveraging the Sagarmala scheme to fund essential infrastructure, the objective is to develop 3-4 shipyards per cluster that meet to global standards.
Additionally, the plan involves partnering with leading shipbuilders worldwide, notably from South Korea and Japan, to establish subsidiary units at selected sites.
Following are a few shipbuilding companies in focus during the upcoming Budget 2024:
Garden Reach Shipbuilders & Engineers Limited
With a market cap of Rs. 29,639.8 crore, the shares of one of the leading warship builders in India, moved up by nearly 3.3 percent to Rs. 2,679.85 on BSE on Thursday, as against its previous closing price of Rs. 2,594.75.
Primarily serving the shipbuilding needs of the Indian Navy and the Indian Coast Guard, Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is a premier shipbuilding company in India under the administrative control of the Ministry of Defence.
The company expects to achieve its highest revenue in the fiscal year 2024-2025, reflecting its commitment to leveraging its strengths and seizing market opportunities. The company is also targeting to maintain an order book of Rs. 24,000 crore by the end of 2024.
GRSE is the first Shipyard in India to export warships and deliver 100 warships to the Indian Navy and Indian Coast Guard.
Cochin Shipyard Limited
With a market capitalisation of Rs. 74,392.7 crore, the shares of one of the leading shipbuilding & repair yards in India, surged by nearly 2.4 percent on BSE to Rs. 2,933.7 on Thursday, as compared to its previous closing price of Rs. 2,863.95.
Cochin Shipyard Limited has recently been qualified to enter into the Master Shipyard Repair Agreement (MSRA) after the US Navy –Military Sealift Command conducted a detailed evaluation process and capability assessment, and has reported a strong order book of Rs. 22,000 crores.
Cochin Shipyard Limited is engaged in the business activities of Shipbuilding and Ship repair, operating in two segments: Shipbuilding and Repair of Ships/Offshore Structures.
Mazagon Dock Shipbuilders Limited
With a market capitalisation of Rs. 1.11 lakh crore, the shares of India’s premier Warship and Submarine builders surged by 0.7 percent on BSE to Rs. 5,780 on Thursday, as compared to its previous closing price of Rs. 5,739.1.
The country’s largest shipbuilder, both in terms of revenue and order book, plans to invest Rs. 2,500-Rs. 3,000 crores over the next 3-4 years in new infrastructure and balancing facilities to expand its shipbuilding yard.
Mazagon Dock is entrusted with the production of some of the Indian Navy’s most ambitious projects, such as the Scorpene class of submarines, as well as the Visakhapatnam and Kolkata class destroyers.
Its focus remains mainly on the defence sector, having successfully constructed 801 vessels, including 27 warships ranging from advanced destroyers to missile boats, along with 7 submarines.
Mazagon Dock Shipbuilders Limited provides a wide range of services including shipbuilding, ship repairs and ship refits to both government and private institutions. It is a key supplier of warships, missile boats and submarines to the Indian Navy and Indian Coast Guard.
Written by Shivani Singh
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