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- 16 Sep 2024
- ICICI Securities
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INDIA EYES GLOBAL SHIPBUILDING MARKET WITH TWO NEW MEGA PARKS BY 2030
News: The ministry of Shipping, Ports & Waterways has announced plans to build 4 ship-building clusters (two each on the east & west coast) in collaboration with coastal states (like Gujarat, Maharashtra, Odisha and Andhra Pradesh) to meet its ambitious targets. By 2030, the ministry targets to set up two operational mega shipbuilding parks. Under the proposed plan, the government will develop basic infrastructure such as roads, land development, and utilities like power and water while the private players will provide critical equipment such as cranes, machines for lifting and cutting, besides dry dock making, and manpower. As per the minister, companies from Japan and South Korea have expressed interest in investing in the sector which could involve direct investments, joint ventures, or technology sharing, or other forms of collaboration.
Views: The proposed plan would significantly enhance the capability of India's shipbuilding industry as India has only 0.06% share of the global market while countries like China, South Korea, and Japan dominate the industry with commanding 85% of the global share. The plan would generate sizable opportunities for shipbuilders like Mazagon Dock, Cochin Shipyard, Garden Reach Shipbuilders and L&T Shipyard. Also, crane manufacturer like Action Construction Equipment (ACE) and other capital goods machinery & auxiliary players would benefit from the increasing investment in the ship-building sector.
Impact: Positive