The Adani Group plans to build ships at its Mundra port in Kutch, Gujarat, according to The Economic Times. This move comes as major shipbuilding ports in China, Japan, and South Korea are fully booked until 2028, creating a demand for new vessels.
India’s Shipbuilding Ambitions
Currently, India ranks 20th in the global commercial shipbuilding market, with a 0.05% share. The country aims to be in the top 10 by 2030 and the top 5 by 2047, as outlined in the ‘Maritime Amrit Kaal Vision 2047’ released by PM Narendra Modi in January.
Market Potential
India’s shipbuilding market could reach $62 billion by 2047, according to a KPMG report submitted to the Ministry of Ports, Shipping and Waterways. The industry could also create 12 million jobs.
Focus on Green Ships
Adani’s shift to shipbuilding aligns with the industry’s demand for green ships. Around 50,000 green vessels will be needed over the next 30 years to replace older models.
Competitive Edge
Adani has the land and environmental approvals to enter the shipbuilding industry quickly due to its SEZ status. Indian shipyards face a 35% cost disadvantage compared to foreign competitors, but Adani is well-positioned to compete.
Current State of Indian Shipyards
India has eight state-owned shipyards (seven under the Defence Ministry) and 20 private ones. Most Indian yards focus on naval vessels rather than commercial ones, according to the KPMG report.
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