India's Shipyards: A New Global Powerhouse Emerges

India is embarking on an ambitious mission to transform its shipbuilding sector, aiming to rank among the top five global powers by 2047. Currently building less than 1% of the world's ships despite handling 95% of its trade by sea, India anticipates significant growth.

The Indian Navy plans an 80% expansion of its frontline fleet by 2030. Concurrently, state-owned companies are expected to order $20 billion in commercial ships over the next decade, with the ship repair market valued at $1.7 billion by 2033.

Knowledge Marine & Engineering Works (KMEW) is expanding into smaller vessels and tugs, acquiring Kamal Marine to form Knowledge Shipyard Private Limited. This subsidiary reported ₹28.5 crore in revenues and ₹2.3 crore in net profit for FY26.

KMEW secured contracts worth ₹700 crore for workboats, dredgers, and 60-tonne-bollard-pull green tugs, focusing on eco-friendly vessels. The company is investing ₹100 crore in shipyard expansion, projecting revenues of ₹500-700 crore within three years.

Swan Defence and Heavy Industries (SDHI), formerly Reliance Naval and Engineering, operates India's largest dry dock facility in Pipavav, Gujarat. SDHI has recommenced operations, completing refit projects for the Indian Coast Guard.

SDHI has partnered with Mazagon Dock Shipbuilders and GRSE for naval and commercial vessel construction. The company has secured orders for four 92,500 DWT dual-fuel ammonia bulk carriers from Energy ONE, expected by October 2029.

Additionally, SDHI received a $227 million order for six vessels from European shipowner Rederiet Stenersen and aims for orders in projects like the ₹36,000 crore P-75 project.

While KMEW shows strong financial metrics, it trades at a premium valuation. SDHI, though still loss-making, is positioning for substantial defense and export orders. Both companies are ones to watch in this long-gestation, competitive industry.