Can Swan Defence-backed Pipavav shipyard anchor India’s maritime ambitions?

Rear Admiral (retd.) Vipin Kumar Saxena, chief executive officer of SDHI, said the project marks a new chapter in India’s maritime industrial growth story. “This is a golden period for the country," he said in an exclusive interview to Mint. “We now operate one of the world’s largest shipbuilding facilities, and with fresh investment, advanced automation, and strategic collaborations, we’re positioned to make Pipavav the nucleus of India’s shipbuilding ecosystem."

World-class infrastructure, renewed ambition

SDHI, formerly Reliance Naval and Engineering Ltd, is a leading Indian company in shipbuilding and heavy fabrication. It operates one of the country’s largest dry docks (Asia's fourth largest) (662m x 65m) capable of handling vessels up to 400,000DWT (deadweight tonnage) and has a 300-acre fabrication site with an annual block construction capacity of 1,44,000 tonnes. The facility alone accounts for more than 30% of India’s shipbuilding capacity.

Deadweight tonnage refers to the total weight of a ship, including cargo and fuel, but excludes the ship's own weight.

“What sets us apart is not just the scale, but the level of automation and semi-automation integrated into our shipbuilding processes," Saxena explained. “These capabilities enable us to take on a wide range of vessel types—from complex defence platforms to large commercial ships."

Since the takeover of Reliance Naval in January last year and its subsequent renaming by the Swan Group, SDHI’s promoters have committed $500 million for regeneration and reconfiguration of the yard, with about $150 million already invested in acquisition and early modernization. Over the past 18 months, significant capital has gone into upgrading workshops, fabrication lines and maintenance facilities.

“The yard is now fully ready to take on new shipbuilding and MRO (maintenance, repair and overhaul) projects," Saxena said.

Strategic partnerships and niche focus

SDHI’s plan for Pipavav is not just looking at scale but the shipyard is also focussing on high-value, niche segments of the shipbuilding market—a strategy drawn from benchmarking exercises against shipyards in Korea, Japan, China, Vietnam, and the Philippines.

“We see strong potential in specialized and technically advanced vessels," Saxena said. “These include offshore construction platforms, cable-laying and pipelining vessels, flood net carriers, gas carriers, container ships, MR and chemical tankers. In parallel, we are also exploring very large commercial vessels—VLCCs and gas tankers—which few Indian yards can currently build."

To strengthen capability, SDHI has already signed an agreement with Royal IHC Netherlands for technology collaboration in specialized platforms, and is in talks with leading Korean shipyards for co-production and design partnerships. “We have also finalized an understanding with Samsung Heavy Industries, one of the world’s largest shipbuilders, to explore cooperation in design, fabrication, and offshore engineering systems," Saxena said. “Such partnerships will accelerate capability transfer and help us meet international benchmarks in quality and delivery."

Saxena stressed that as India pushes to expand its shipbuilding footprint, supply chain strength and delivery discipline will be key. “Securing orders is one thing; delivering on time, at quality and cost, is another," he said. “That’s why we’re investing heavily in design engineering, supply chain management, and project execution capabilities."

Policy tailwinds and PPP momentum

SDHI’s expansion coincides with the government’s renewed thrust on maritime manufacturing, including incentives under the Maritime India Vision 2030 and the inclusion of large ships in the Harmonised Master List (HML) of infrastructure projects—a move that improves access to long-term, low-cost finance. The HML is an official list maintained by the Union finance ministry, and defines what qualifies as infrastructure sector for the purpose of policy-making and financing.

“The government’s recognition of shipbuilding as infrastructure is a game-changer," Saxena noted. “It reflects a clear intent to make India a global maritime manufacturing hub."

At a recent maritime summit in Gujarat's Bhavnagar, SDHI and other entities signed agreements worth an estimated $8 billion, underscoring growing investor confidence. Saxena sees public-private partnerships (PPPs) as the engine of this momentum. “If India is to become the world’s fifth-largest shipbuilding nation by 2047, DPSUs (defence public sector undertakings), PSUs, and private shipyards must work in tandem," he said.

He drew a parallel with India’s defence shipbuilding success, where indigenous warship design and manufacturing have reached 85–90% self-reliance. “If we can build aircraft carriers and submarines indigenously, commercial shipbuilding—though complex—is equally achievable," he emphasised.

Pipavav as India’s maritime nerve centre

Industry experts see SDHI's Pipavav initiative as a crucial step in India's bid to expand its global footprint in shipbuilding. While the country currently accounts for less than 1% of the global order book, policy momentum and private investment could change that trajectory.

With its strategic location near Gujarat’s industrial corridors and ports like Mundra and Hazira, Pipavav is ideally positioned to evolve into a maritime manufacturing cluster. SDHI is working with the Gujarat Maritime Board to attract component manufacturers, service providers and training institutions to the region.

“Our vision is to create not just a shipyard, but a complete ecosystem," Saxena said. “Indian-built, Indian-flagged, and Indian-operated vessels—that’s the goal. With public-private collaboration and sustained investment, Pipavav can truly anchor India’s shipbuilding future."