Swan Defence and Heavy Industries Ltd (SDHI), a subsidiary of the century-old Swan Corp Limited, has undertaken a transformative and strategic role in powering India’s journey toward maritime prominence with a clear vision aligned to the national ambition of becoming one of the world’s top five shipbuilding nations by 2047.

By acquiring Reliance Naval and Engineering Ltd (RNEL), the largest shipyard in India, SDHI is revitalising a critical industrial and strategic asset on the west coast of Gujarat, turning it into a world-class hub for shipbuilding, heavy engineering, and maritime manufacturing.

The strategic rationale behind Swan Corp’s acquisition of RNEL revolves around unlocking the latent potential of India’s largest dry dock and, more broadly, its unmatched shipyard infrastructure. SDHI now controls a shipyard facility spanning over 600 acres, housing India’s largest dry dock (662m x 65m), capable of handling Ultra Large Crude Carriers (ULCCs) and Very Large Crude Carriers (VLCCs) up to 400,000 Deadweight Tonnage (DWT).

This infrastructure dwarfs all other Indian shipyards in scale and set an unparalleled industrial base in the country, including India’s largest semi-automatic steel panel line with an annual steel fabrication capacity of 144,000 metric tons, exceeding the combined capacities of other national yards. The acquisition facilitates India’s maritime self-reliance by revitalising indigenous shipbuilding and defence manufacturing, positioning SDHI to support economic growth, create high-quality employment, and enhance national security.

The initial challenges SDHI faced during the revival included managing legacy liabilities inherited from RNEL, complex stakeholder negotiations, restoring investor confidence, and navigating regulatory clearances. These were systematically overcome through an infusion of fresh capital, recruitment of seasoned leadership—led by Rear Admiral Vipin Kumar Saxena (Retd), a decorated naval officer turned industry leader—and implementation of transparent, governance-driven operational reforms. Such decisive actions restored the shipyard’s operational stability and market credibility, culminating in renaming the company to Swan Defence and Heavy Industries Ltd and its relisting on the NSE and BSE. This relisting sent a strong signal to financial markets and stakeholders, reaffirming the company’s renewed commitment to transparency, robust governance, sustained growth, and India’s strategic maritime ambitions.

Leveraging the extensive facilities, SDHI emphasises the modernisation and augmentation of its existing infrastructure. The yard’s large dry dock and dedicated offshore yard, alongside specialised facilities such as a pre-erection berth and a dual berthing quay, form the backbone of a highly efficient shipbuilding ecosystem capable of executing diverse projects—ranging from large commercial vessels to complex naval and offshore platforms. The deployment of advanced semi-automated fabrication technologies, including CNC cutting machines and humidity-controlled painting cells, furthers process efficiency and quality consistency. Investment priorities include modernising equipment, expanding quay facilities, adding a lock gate to convert the dry dock into a protected wet basin for all-weather operations, and strengthening the operational leadership and workforce skills to meet global standards. These initiatives enable SDHI to capitalise on its scale and technological edge to drive growth and profitability.

India’s shipbuilding sector is currently at a strategic inflection point, fuelled by increasing domestic and global vessel demand, capacity saturation in historically dominant shipbuilding hubs such as China, Japan, and South Korea, and the Indian government’s proactive policies under ‘Make in India,’ ‘Atmanirbhar Bharat,’ and the Maritime India Vision 2047. Government support includes revised financial assistance policies, infrastructure status for large vessels, a ₹25,000 crore Maritime Development Fund, and import duty exemptions—all of which provide a supportive ecosystem fostering industry growth and competitiveness. This policy framework offers a clear growth roadmap, incentivising domestic manufacturing and shipyard capacity enhancement, which perfectly aligns with SDHI’s revival and expansion goals.

SDHI’s most significant competitive advantage lies in the unrivalled size and scope of its shipyard infrastructure combined with strategic coastal location. Its ability to build and service vessels up to ULCC class and complex naval platforms, alongside a vast annual steel fabrication capability, sets it apart not only from Indian competitors but on the international stage as well. The yard’s scale permits simultaneous execution of commercial, defence, and offshore projects, boosting operational flexibility and resource optimisation. This breadth positions SDHI as a premier global maritime hub capable of delivering large-scale, high-complexity vessels and offshore structures under one roof.

The demand outlook for shipbuilding and ship repair is robust globally and within India. Worldwide, the industry is projected to grow to USD 200-204 billion by 2030–33, driven by factors such as rising seaborne trade, decarbonisation mandates, and the need to replace ageing fleets. India, showing exponential growth from USD 90 million in 2022 to a projected USD 8 billion by 2033, benefits from strong policy backing and a favourable structural environment. However, risks remain from import dependencies, supply chain disruptions, and regulatory bottlenecks. SDHI’s strategy to mitigate these involves fostering indigenous capabilities, strategic collaborations, and aligning closely with government initiatives to maintain a stable growth trajectory.

In terms of contribution to national maritime ambitions, SDHI plans to be a cornerstone industrial asset. Beyond constructing large commercial and naval vessels, the company contributes directly to national defence readiness and maritime security by building next-generation naval platforms and supporting offshore energy infrastructures. Reducing reliance on foreign shipbuilding yards, SDHI’s focus on indigenisation supports strategic autonomy and economic development through job creation and industrial ecosystem growth.

SDHI’s operational revival has been highlighted by successful refits of Indian Coast Guard Fast Patrol Vessels Raj Ratan and Meera Behn, and Offshore Patrol Vessel Sajag, involving hull, machinery, and electrical upgrades under stringent time constraints with short refit norms. Challenges included reactivating dormant infrastructure, multi-team coordination, and simultaneous adherence to quality and safety protocols—overcome through dedicated professional teams. These projects restored market confidence, demonstrated technical proficiency, and positioned SDHI to pursue future contracts in naval and defence sectors.

Operational efficiency at SDHI is measured by the global benchmark of “man-hours per ton of steel” in Compensated Gross Tonnage (CGT), adjusting for vessel complexity. While Indian yards currently average around 200 man-hours per ton, versus 30–40 in international yards, SDHI targets an initial improvement to 90 man-hours per ton. Key initiatives include modular block construction using semi-automatic panel lines, pre-outfitting at ground level to reduce dry dock time, standardisation through jigs and ergonomic tools, and continuous workforce retraining aligned with global standards. These measures enhance productivity, reduce delivery timelines, and foster a process-driven culture.

Advanced facilities such as the pre-erection berth and dual berthing quay minimise docking time and support high-throughput parallel shipbuilding operations through the Tandem Construction Method. Heavy-duty cranes, including a 600-ton Goliath Crane, enable large, pre-outfitted block handling. SDHI is optimising these assets by enhancing design accuracy, supply chain efficiency, and extending quay infrastructure, including installing a lock gate for all-weather protected basin operations. They are simultaneously investing in workforce welfare and training, recognising that skilled human capital is key to sustained productivity and world-class shipyard status.

While confidentiality restricts disclosure of full contract details, SDHI is in advanced negotiations for next-generation patrol vessels, offshore supply vessels, and commercial bulk carriers, alongside active bidding for strategic naval refit and maintenance, repair, and overhaul (MRO) projects. These contracts align with India’s priorities of fleet modernisation, indigenisation, and green shipping, including LNG-fuelled vessels, hybrid propulsion systems, and offshore support vessels.

Finally, SDHI actively pursues technological innovation to maintain a competitive edge. This includes adoption of digital twin technology for real-time monitoring and optimisation, automation-driven manufacturing to shorten timelines and improve efficiency, and exploration of advanced materials such as lightweight composites and high-strength steel to enhance fuel efficiency and vessel durability. These advancements not only solidify India’s position in the global shipbuilding industry but also ensure that SDHI supports a sustainable, quality-driven, and technologically advanced maritime future.

Swan Defence and Heavy Industries’ revival of the Reliance Naval and Engineering shipyard is a landmark step in India’s maritime industrial journey. It effectively marries India’s historical shipbuilding legacy with modern technology, governance, and scale to build a future-ready maritime powerhouse, underpinning India’s ambition to be a global leader in shipbuilding by 2047.

Agencies