NEW DELHI: Domestic shipbuilder and fabricator Swan Defence and Heavy Industries (SDHI) is exploring a collaboration with South Korea’s Samsung Heavy Industries (SHI) to build complex commercial vessels at its Pipavav yard in Gujarat, as India pushes to scale up shipbuilding capacity.
In an interview with Mint, SDHI chief executive officer Vipin Kumar Saxena said the companies plan to cooperate initially on medium-range (MR) product tankers and potentially very large gas carriers (VLGCs), with Samsung providing designs and engineering support.
“We will start by working together on specific ships (MR tankers and VLGCs). Once we execute these successfully and build confidence, the relationship can evolve further,” Saxena said in the interview.
Samsung will license vessel designs and provide engineering and material packages, while construction will take place at SDHI’s Pipavav yard. SDHI will pay design and licence fees on a per-vessel basis.
The partnership is currently structured as a licence-led collaboration rather than a formal joint venture, though Saxena said it could expand over time.
“At this stage, it is not an equity joint venture. It is a cooperation model where they bring design and know-how, and we execute. Over time, if both sides see value, it can expand,” he said.
Financial terms of the collaboration were not disclosed.
The collaboration comes as India seeks to expand domestic capability in complex ship segments and reduce reliance on overseas yards, particularly in categories dominated by Korean and Chinese shipbuilders. Industry executives say a phased licensing model allows Indian yards to acquire technological capability while limiting upfront risk for foreign partners.
Swan has submitted a joint bid with SHI in response to a Shipping Corp. of India (SCI) tender to construct two firm and two optional dual-fuel ready MR product tankers valued at around $200 million in total. The companies are also looking to participate in upcoming SCI tenders for eight VLGCs, under which two vessels would be built at a Korean yard and six at an Indian shipyard using the same technology platform.
Phased model limits risk
Industry executives say such a phased model reduces risk for foreign shipbuilders while allowing Indian yards to build capability in high-technology vessels.
“In terms of quality of shipbuilding, Koreans are a close second to the Japanese. While one is not aware of the details of the collaboration, Samsung is a leader in ship building and if Samsung will be ready and willing to transfer technology to our yards, surely this can be a win for both sides,” said Anil Devli, chief executive officer, Indian National Shipowners’ Association (INSA).
“We will improve our skills and import the technology to build complex vessels and Samsung will benefit by being a direct beneficiary of the Indian market while continuing to serve demand worldwide,” Devli added.
Indian public sector oil companies have consolidated demand for 59 ships, largely tankers, creating order visibility that industry executives say could help build local shipbuilding capacity, and also attract global partners. The discussions also come amid policy support aimed at encouraging domestic construction of tankers and gas carriers.
India currently has shipbuilding capacity of about 1,00,000 gross tonnage (GT). Under the Maritime Amrit Kaal Vision 2047, the country aims to enter the top 10 globally in ship ownership and shipbuilding by 2030 and the top five by 2047. The plan envisages expanding Indian-flagged ship ownership sevenfold to 100 million GT and increasing output 40 times to 4.5 million GT by 2047.
Strategic push at Pipavav
SDHI operates one of India’s largest dry docks at Pipavav and has been expanding fabrication capacity and infrastructure since restarting operations in early 2024.
The company has increased fabrication capacity to more than 160,000 tonnes per annum and is investing in crane capacity, digital integration and brownfield expansion. It has also signed a ₹4,250 crore memorandum of understanding with the Gujarat Maritime Board covering augmentation, a proposed maritime cluster and a training-focused centre of excellence.
A second 600-tonne Goliath crane is under consideration to enable concurrent construction of large vessels, while the yard is integrating design, procurement and production systems under a digital “smart shipyard” framework.
Saxena said the objective is to position Pipavav as a hub for complex commercial vessels such as MR tankers, gas carriers, chemical tankers and eventually container ships.
Export momentum builds
The prospective Samsung collaboration follows SDHI securing India’s first export order for six 13,000 DWT (deadweight tonnage) chemical tankers from a Norwegian client, with an option for six more vessels. The company has also won a defence export contract to build a cadet training ship for Oman.
Winning export contracts against established Asian shipbuilders has boosted confidence at the yard, Saxena said, adding that partnerships with global design leaders are critical to accelerating India’s move up the value chain.
“If we can build these ships here with global design support and competitive cost structures, India can emerge as an alternative to traditional shipbuilding hubs,” he said.
Policy tailwinds
The Centre’s revamped shipbuilding financial assistance (SBFA) scheme, which offers up to 25% support on eligible vessels, has narrowed the cost differential with overseas yards and improved bidding competitiveness, industry executives say.
Combined with demand visibility from state-run shipping companies and oil PSUs, the policy environment has encouraged Indian yards to plan for scale.
For SDHI, the strategy is to secure domestic and orders alongside global design partners while gradually deepening those relationships into more formal alliances.
While a full-fledged joint venture with Samsung has not been finalised, cooperation on initial projects at Pipavav could serve as a template for future foreign collaborations in India’s shipbuilding sector.
“As confidence builds, partnerships will naturally deepen,” Saxena said.