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GRSE has commenced expansion of its shipbuilding and ship-repair infrastructure in West Bengal

ICICIdirect Research 24 Aug 2026 DISCLAIMER

News: GRSE has commenced expansion of its shipbuilding and ship-repair infrastructure in West Bengal, with three projects at Raichak, Shalimar and Kidderpore as part of an overall investment of ~₹2,700 crore. The Raichak facility, involving an investment of ₹2,500+ crore, will enable construction of warships up to 200 metres and commercial vessels up to 60,000 DWT, while the Shalimar and Kidderpore facilities will strengthen medium-vessel construction and repair capabilities. The projects are part of the broader ~₹3,500 crore expansion programme across GRSE and Yantra India.

View: The expansion is strategically important for GRSE and is in line with management’s stated priority of increasing shipbuilding capacity and expanding into larger commercial vessels and ship repair. GRSE is already increasing capacity from 28 to 32 platforms within existing facilities by CY26, while the Raichak project adds a significant greenfield capability for larger warships and commercial vessels. The expanded facilities should enable GRSE to pursue larger domestic and export opportunities, while strengthening its ship-repair and refit capabilities. We believe the investments provide a strong foundation for the company’s longer-term transition from a predominantly defence-focused shipyard towards a broader defence, commercial shipbuilding and MRO platform, supporting its ambition to benefit from the emerging global shipbuilding opportunity.

Impact: Positive

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