Cochin Shipyard Limited (CSL) is in advanced discussions with South Korea’s HD Hyundai Group to set up a $500-million shipbuilding joint venture in Kochi, marking the first direct investment by a global shipbuilding major into India’s core shipbuilding infrastructure, according to Mint.
The proposed venture, structured as a 50:50 partnership, represents a potential breakthrough in India’s long-standing ambition to become a significant shipbuilding nation alongside established leaders like China, South Korea, and Japan. The timing is notable, as Asian shipyards are currently operating at full capacity, with order books stretching years ahead.
The collaboration will involve HD Korea Shipbuilding and Offshore Engineering (HD KSOE), the shipbuilding arm of HD Hyundai Group. CSL chairman and managing director Jose VJ told Mint that a CSL delegation is scheduled to visit South Korea this month to finalize discussions, while HD Hyundai representatives have already conducted site inspections and preliminary evaluations in Kochi.
The agreement is expected to be finalized in the second half of 2026, with an initial investment of approximately Rs 4,500-5,000 crore to construct a ship block fabrication facility near CSL’s existing yard. The planned facility will be located close to CSL’s 310-metre dry dock in Kochi.
Block fabrication facilities produce large hull sections that are later assembled in a dry dock. The proposed unit will occupy around 80 acres leased from the Cochin Port Trust in Kerala. With an anticipated annual output of 120,000 metric tonnes, the facility is expected to generate around 2,000 direct jobs, along with significant indirect employment across MSMEs, logistics networks, and ancillary industries.
By combining Hyundai’s design expertise, advanced production systems, and access to global orders with CSL’s infrastructure, the venture aims to construct larger and more sophisticated vessels, including cargo ships, container vessels, tankers, dry bulk carriers, MR tankers, Panamax vessels, and multipurpose ships. Very large crude carriers (VLCCs) are not included in the initial plans due to current infrastructure limits but could be considered later depending on market conditions and capacity expansion.
CSL plans to leverage its recently commissioned 310-metre dry dock, inaugurated by Prime Minister Narendra Modi in January 2024, capable of handling ships up to 300 metres in length. This dry dock will support the construction of larger vessels such as Suezmax tankers, container ships, and Capesize bulk carriers, accommodating up to six large vessels annually.
A senior CSL executive said the partnership is expected to provide the scale and technological capabilities required for high-volume hull manufacturing using thousands of tonnes of steel. The ultimate goal is to achieve double-digit annual ship production to serve both domestic and international markets.
The initiative aligns with the government’s broader push to strengthen India’s shipbuilding ecosystem through international partnerships. Discussions are also ongoing with other companies in Japan and South Korea to explore similar ventures in different regions. At the time of publication, Mint reported that queries sent to HD Hyundai Group and the Ministry of Ports, Shipping and Waterways had not been answered.
