South Korean shipbuilding giant HD Hyundai announced on Sunday its plan to establish its first shipyard in India, selecting the port city of Thoothukudi in Tamil Nadu for the project. The memorandum of understanding (MoU) was signed at the Tamil Nadu Investment Conclave 2025 in Madurai, in the presence of Chief Minister MK Stalin, Industries Minister TRB Rajaa, and senior executives from HD Korea Shipbuilding & Offshore Engineering (KSOE).
Mega-Scale Investment
While official investment figures have not been disclosed, sources indicate the project could require at least $2 billion (around ₹18,000 crore). The company is in the process of securing funds, with final investment commitments expected to be clarified in the coming days.
Global Experience of HD Hyundai
HD Hyundai, one of the world’s largest shipbuilders, recently reached a milestone of delivering 5,000 vessels globally. The company currently operates shipyards in Vietnam, the Philippines, and Saudi Arabia. Internally, the India initiative has been referred to as the “SMITH Project” — Shipbuilding Make in India Together with Hyundai — reflecting its long-term commitment to the country.
Hannae Choi, Vice President and Head of Corporate Planning at HD KSOE, said, “This vision to build a mega-scale shipyard will be realized in collaboration with the Government of India, the Government of Tamil Nadu, and HD Hyundai.”
Why Thoothukudi?
The Thoothukudi location was chosen for its clear policy framework, fast coordination, and a strong coastal ecosystem, according to Tamil Nadu Industries Minister TRB Rajaa. The project comes shortly after Cochin Shipyard and Mazagon Dock Shipbuilders announced plans to set up two greenfield commercial shipyards in Thoothukudi, with combined investments of around ₹30,000 crore and the potential to create 55,000 jobs.
Economic and Employment Impact
Shipbuilding in India is highly labor-intensive, with employment multipliers estimated at around 6.4x. TRB Rajaa noted that 60–65% of value addition in shipbuilding comes from ancillary sectors, making it a key driver for industrial growth and technological innovation.
Tamil Nadu’s Maritime Ambitions
The state has been actively promoting shipyard development to boost coastal economies, attract large-scale investments, and nurture skilled talent.
Investment Boost from TN Rising
At the ‘TN Rising’ Investor Conclave, a total of 91 MoUs were signed, with investment commitments worth ₹36,660.35 crore, highlighting Tamil Nadu’s growing appeal as an industrial and maritime hub.
