Garden Reach Shipbuilders and Engineers (GRSE), a leading defence public sector undertaking headquartered in Kolkata, is charting a significant expansion strategy to address surging demand from both domestic and international markets.

Recognising that its current and planned capacity within Kolkata will not suffice to meet the anticipated demand over the next five to ten years, GRSE is actively pursuing the establishment of a greenfield shipbuilding plant outside Kolkata. The company has already identified potential sites on both India’s east and west coasts, with a decision on the final location expected within the next six months.

In 2024, GRSE enhanced its production capability, increasing its concurrent shipbuilding capacity from 20 to 24 vessels. To further boost output, the company plans to revive some defunct facilities and secure long-term leases of dry docks from other agencies, aiming to raise its capacity to 28 ships by the end of 2025.

This expansion is driven by a robust and growing orderbook, which stood at ₹22,680 crore as of March 31, 2025, despite record revenues of ₹5,075 crore in FY25. GRSE’s management is targeting an orderbook of at least ₹40,000 crore by the end of the current fiscal year, with a balanced mix of defence and commercial shipbuilding orders.

Export markets are a key focus for GRSE, with the company aiming to more than double the export component of its orderbook to 10% within a year. This ambition is supported by recent partnerships with international firms, including a memorandum of intent with a German shipowner for the construction of four new multi-purpose vessels and a collaboration with a Dubai-based engineering firm to identify and execute new offshore projects.

GRSE is also investing in ship repair capabilities, a segment it entered recently, anticipating substantial growth and better margins in the coming years.

The West Bengal government has expressed strong interest in supporting defence manufacturing and is open to developing a defence-focused industrial park to attract further investment in the sector. With around 200 industrial parks already established and scope for more, the state aims to leverage its large base of small and medium enterprises to support major defence sector players like GRSE.

GRSE’s expansion plans reflect a proactive response to rising demand, both domestically and internationally.

The company’s strategy includes capacity augmentation, geographic diversification beyond Kolkata, and a sharper focus on exports and ship repair, positioning it for sustained growth in a competitive global shipbuilding landscape.

Agencies