GRSE expands shipbuilding capacity, eyes global markets

Kolkata: Garden Reach Shipbuilders & Engineers Limited (GRSE) is strengthening its shipbuilding infrastructure and diversifying into commercial and international markets as India seeks to increase its share in the global maritime industry.

The Navratna public sector undertaking is enhancing its capacity to construct 32 vessels concurrently, up from the existing 28, to meet rising demand from the defence, commercial and export sectors.

Interacting with a media delegation from Telangana during the PIB Hyderabad media tour in Kolkata, GRSE Chairman and Managing Director Cmde PR Hari, IN (Retd.), said India currently accounts for less than 0.1 per cent of global shipbuilding and has set an ambitious target of becoming one of the world's top 10 shipbuilding nations by 2030 and among the top five by 2047.

“From a minuscule, less than 0.1 per cent, to become the top 10 and top 5 are extremely challenging. We really have to ramp up our shipbuilding capability,” he said.

GRSE, which traces its origins to 1884, was taken over by the Government of India in 1960. It built INS Ajay, the first warship constructed by an independent Indian shipyard for the Indian Navy, in 1961. Since then, it has built more than 800 platforms, including 118 warships for the Indian Navy, Indian Coast Guard and friendly foreign countries.

The shipyard has also expanded its export footprint, having built India's first export warship, CGS Barracuda, for Mauritius, a fast patrol vessel for Seychelles and an ocean-going cargo and passenger ferry for Guyana.

GRSE is increasingly moving beyond its traditional defence shipbuilding business. Non-defence orders, which accounted for around five per cent of its order book about five years ago, now constitute 20–25 per cent. The company is currently executing an order for 12 multi-purpose vessels for a German commercial ship owner.

“We have moved into commercial shipbuilding. With the opportunities that we see in commercial shipbuilding, the proportion of non-defence orders is expected to rise in the coming years,” Hari said.

To support expansion, GRSE is developing a major greenfield shipbuilding facility at Raichak in West Bengal with an investment of more than Rs 2,500 crore. It is also exploring a major facility on the western coast, with negotiations underway for a facility in Gujarat.

The shipyard is closely linked with the domestic MSME ecosystem, with around 2,500 MSMEs associated with its activities. Nearly 69 per cent of its domestic procurement during the previous year was through MSMEs.

GRSE is also promoting indigenous innovation through its GAINS (GRSE Accelerated Innovation Nurturing Scheme). Startup participation has increased from 49 in the first edition to 61 in the second and 101 in the third, with the company targeting more than 150 startups in the latest edition. Indigenisation remains another major focus, with indigenous content in recent major warship projects exceeding 85 per cent. GRSE is working to further develop critical technologies, particularly in propulsion systems.

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Gouda Swiyachandra

Gouda Swiyachandra