India’s Shipbuilding Market To Expand With Adani Group’s New Facility At Mundra Port

Billionaire Gautam Adani plans to begin shipbuilding operations at the Adani group’s flagship Mundra Port, as shipyards in China, Japan and South Korea are completely booked until 2028.

The initiative is expected to establish India as a viable option for global fleet owners seeking new vessel production facilities.

The effort aligns with India’s Maritime India Vision 2030, which aims for the country to become one of the top ten shipbuilders by 2030 and grow to the top five by 2047.

India currently ranks 20th in the world’s commercial shipbuilding market, accounting for less than 1% of the total.

According to the KPMG report, to meet these targets, Indian shipyards’ yearly output must rise from 0.072 million gross tonnage (GT) to 0.33 million GT by 2030 and then to 11.31 million GT per year by 2047.

The Adani Group’s shipbuilding initiative is part of a broader strategy to diversify and expand its presence in the maritime sector.

Mundra Port, which handles the most volume of any port in India, is essential to this strategy.

The Adani Group has announced substantial investments in ongoing and upcoming port projects.

The Group intends to establish the world’s largest renewable energy manufacturing facility in Mundra, Gujarat.

The center will manufacture various components, including cells, ingots, polysilicon, solar modules, wafers, and wind turbines for green energy generation.

Adani Ports and Special Economic Zone Limited (APSEZ) announced a 76% increase in consolidated net profit to Rs 2,040 crore for the March 31, 2024 quarter, driven by greater cargo volumes.

The financial performance demonstrates the group’s robust growth and commitment to diversifying into new sectors, such as shipbuilding and renewable energy.

The Adani Group’s entry into shipbuilding is expected to boost India’s expanding shipbuilding industry while contributing to the global shift towards green ships, propelled by decarbonization targets.

Over the next three decades, more than 50,000 vessels will be constructed to replace existing fleets, signalling a tremendous opportunity for India.

While the details of the Mundra Port shipbuilding project have yet to be revealed, the Adani Group’s strategic investments are expected to boost its market presence and help India achieve its maritime goals.

The group’s investment in the shipbuilding sector reflects an overall increase among global fleet owners who consider India an alternate manufacturing destination for new vessels.

Reference: Money Control, Economic Times

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