In a recent interview with The Indian Express, Madhu S Nair, the Chairman and Managing Director of Cochin Shipyard Ltd (CSL), discussed the organisation’s evolution into a leading international shipbuilder. He highlighted that the shipyard’s growth was driven by necessity, especially during challenging times in the early 2000s when it faced dwindling orders and financial instability. The turning point came with India’s opening up of markets, coinciding with Nair’s return from studies in Japan.
International Ventures
During the 1990s, the focus was on “saving our shipyard,” as CSL’s financial health was under threat. After a restructuring phase in the mid-90s, Nair returned to find that CSL had secured its first international contract with NPCC, an Abu Dhabi-based company, valued at $8.2 million. His team’s dedication led to further overseas contracts, marking the beginning of CSL’s global presence.
Nair’s strategic entry into Western markets through partnerships, such as with London-based shipping magnate John Frederickson, allowed CSL to execute complex projects efficiently. “We completed vessels at an unprecedented pace, earning accolades and boosting morale within the company,” he mentioned.
Building a Strong Culture
Nair emphasised that CSL’s transformation is rooted in a culture of integrity and excellence fostered by its workforce, including top-tier engineers from prestigious institutions. The evolution of trade union perspectives has led to mutual respect and collaboration, contributing to the company’s stability. “Over 36 years, we have not lost a single day to strikes,” he noted, underscoring employees’ commitment to CSL’s success.
Future Growth and Profitability
Looking ahead, Nair expressed cautious optimism regarding CSL’s impressive order book and profitability. He aims to build on findings from a Boston Consulting Group study, targeting a turnover of ₹10,000-12,000 crore by 2030-31. CSL is expanding beyond Kochi, establishing units in Kolkata and Andaman, with a balanced focus on defence and private sector projects.
Innovations and Sustainability
Regarding future projects, Nair confirmed the Indian Navy’s interest in another aircraft carrier, with CSL ready to take the lead once decisions are made at the highest level. He also mentioned the potential for a knowledge division that could significantly contribute to the company’s turnover, while emphasising a commitment to sustainability through an ESG framework.
Shipbuilding Opportunities
Nair discussed CSL’s largest dry dock in Southeast Asia, designed for various vessels, stating that India aims to become one of the world’s top shipbuilders by learning from the successes of Japan and Korea. He stressed that CSL is poised to seize opportunities in this expanding sector.
Embracing the Future
As CSL considers acquisitions and investments, Nair is keen on enhancing capabilities in ship repair and design, welcoming collaborations to strengthen CSL’s position in the maritime industry. The recent development of India’s first hydrogen-powered ferry underscores CSL’s commitment to innovation.
Challenges and Opportunities for Kerala
Reflecting on Kerala’s economic landscape, Nair suggested that reducing waste and focusing on wealth creation are vital for improvement. He believes that enhancing the investment appeal of Kerala is crucial and advocates for a shift in the operational approach of state PSUs to attract opportunities.
Vision for Education and Cleanliness
Nair also addressed challenges in Kerala’s higher education sector, advocating for stronger ties between educational institutions and industries. He emphasised the need for Kochi to improve cleanliness and open spaces to truly shine as a global city.
Personal Reflections
Despite his busy schedule, Nair expressed a desire for continual learning, stating, “I may not read as much as I’d like, but I consider myself a continual learner.”
