HD Hyundai is set to begin groundwork on its ₹40,000 crore ($4 billion) greenfield shipyard in Thoothukudi, Tamil Nadu, marking India’s first such facility by a global shipbuilder.

The project will transform Thoothukudi into a major shipbuilding hub with an annual capacity of up to 4 million gross tonnage, positioning India as a serious contender in global maritime manufacturing.

The proposed shipyard is being developed by HD Korea Shipbuilding & Offshore Engineering (HD KSOE), a division of HD Hyundai, and is expected to be finalised through a definitive agreement with the Centre and the Tamil Nadu government.

The State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) and Sagarmala Finance Corporation Ltd are likely to play key roles, with SIPCOT anticipated to hold a minority equity stake equivalent to the value of land and infrastructure provided.

The Maritime Development Fund may also participate, ensuring long-term financing for shipbuilding and repair industries.

The project was initiated with a memorandum of understanding signed in December 2025, and the final agreements are expected to be concluded shortly . A technical team of 15–20 members from HD Hyundai is already stationed in Thoothukudi, preparing for the preliminary groundwork.

The site was chosen for its favourable climate, particularly low air salinity, and strategic location in the Gulf of Mannar, which offers logistical advantages for global shipping routes.

The shipyard is designed as a digital-focused facility, integrating advanced shipbuilding technologies and automation. It will include a drydock exceeding 300 metres and vendor facilities to support construction.

The annual production capacity is projected at 3.5 to 4 million gross tonnage, a scale that rivals the combined output of all planned Indian shipbuilding clusters across Tamil Nadu, Andhra Pradesh, Gujarat, Maharashtra, and Odisha.

This underscores the ambition of HD Hyundai, which intends to bring its entire vendor ecosystem, including South Korean steel giant POSCO, to Thoothukudi.

Production will focus on large commercial vessels such as Very Large Crude Carriers (VLCCs) and Very Large Gas Carriers (VLGCs), significantly expanding India’s capacity in deep-sea shipbuilding. 

The facility is expected to create a robust industrial cluster, with infrastructure investments including breakwaters and dredging estimated at an additional ₹40 billion. This will not only generate thousands of jobs but also stimulate ancillary industries in steel, logistics, and marine engineering.

India’s Maritime Amrit Kaal Vision 2047 sets ambitious targets for the nation to be among the top ten in ship ownership and shipbuilding by 2030, and among the top five by 2047.

The Thoothukudi shipyard aligns directly with these goals, as India must increase ship ownership sevenfold to 100 million gross tonnage and expand shipbuilding output fortyfold to 4.5 million gross tonnage by 2037. The scale of Hyundai’s investment ensures India will make significant strides towards these benchmarks.

Industry experts, including the Indian National Shipowners’ Association, have noted that the project will bring critical skills in shipbuilding, design, and planning to India, helping the country establish itself as a maritime power of consequence.

The shipyard is also distinct from Hyundai’s joint venture with Cochin Shipyard Ltd in Kochi, which focuses on block fabrication, highlighting the breadth of Hyundai’s commitment to India’s maritime sector.

This landmark project represents not only a major foreign investment but also a strategic leap in India’s shipbuilding capabilities, reinforcing its position in global maritime trade and industrial development.

Agencies