NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES
SCHOOL OF BUSINESS MANAGEMENT
Industry And Competitive Landscape Analysis
Industry Review: Ships, Boats, Naval Vessels (HS89)
Div B Group 4
Submitted By:
Kanad Dhok
Isha Gala
Lohit Reddy Dwarsala
Mohd. Asmar Khan
Harshada Patil
Radhikaprasad Yadnamuri
B020
B072
B052
B054
B038
B056
Submitted to:
Prof. Dr. Sayantan Khanra
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 Executive Summary
This report covers the Indian Shipbuilding and Marine Structures Industry (HS Code 89) in detail,
with a review of its structure, boundaries, value chain, and external environment by using secondary
and primary research approaches. The aspects it covers include market scope, key players, supply
chains, regulations, and technological changes that influence the competitive dynamics of the
industry. Secondary data sources include the MoD, McKinsey, BCG, FICCI, and international
agencies such as IMO and SIPRI. Similarly, insights from primary research among buyers,
suppliers, competitors, and employees have enriched the secondary findings. The key findings
include Indian shipbuilding industry, falling under HS Code 89, have tremendous growth
opportunity driven by increased defense spending, improving exports, and promoting indigenous
shipbuilding under the Atmanirbhar Bharat initiative. However, this industry has always been prone
to challenges like long project cycles, limited private investment, and global competition, which
remain a drag on its expansion. It concludes with strategic implications for the sector, underlining
technological modernization, sustainability, and global collaboration as the drivers for positioning
India as a maritime manufacturing hub.
 Introduction
HS Code 89-Indian Shipbuilding and Marine Structures Industry -is an indispensable part of the
maritime and defence ecosystem in India. It covers designing, building, repairing, and maintaining
ships, boats, such as cargo ships, dredgers, ferries, warships, and offshore platforms. The sector
offers opportunities not only for economic growth but also forms a solid foundation for national
security, jobs, and technological advancement. With more than a dozen major shipyards and several
ancillary units, India is gaining the status of one of the major shipbuilding hubs in the world. The
following report analyzes the structure, boundaries, and competitive landscape of the Indian
shipbuilding industry with the help of:
 Secondary research incorporates government publications, consultancy reports, trade data, and
academic literature.
 Primary research includes field data from stakeholders such as buyers, suppliers, competitors, and
employees. These findings combine PESTEL (macro-environmental analysis), Porter’s Five Forces,
and strategic insights on the current position and growth trajectory of the sector.
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 Industry Boundaries
Indian Shipbuilding and Marine Structures Industry under HS Code 89 includes activities like
designing, constructing, assembling, maintaining, and repairing ships, boats and other similar
structures. This category covers commercial, military, and special marine vessels, offshore and
auxiliary structures like dredgers, pontoons, and floating docks. The industry can be situated in five
major dimensions namely product, technology, customer, regulation, and geography, which put
together the scope and competitive environment of this industry.
 Product Boundaries
HS Code 89 covers a wide range of vessel types, including large commercial vessels and small
specialized crafts.
 Merchant and Cargo Vessels: Bulk carriers, oil tankers, container ships, and Ro-Ro vessels used
in domestic and international trade.
 Defence and Patrol Vessels: Warships, frigates, corvettes, submarines, and patrol boats are mainly
built for the Indian Navy and Coast Guard.
 Service and Support Crafts: Tugboats, dredgers, survey ships, and training vessels.
 Leisure and passenger vessels: Ferries, yachts, tourism boats.
 Floating Structures: These are barges, pontoons, dry docks, and offshore platforms serving either
the oil & gas or renewable energy industries.
 Technological Boundaries
These technological domains range from traditional steel fabrication to the latest and most modern
modular and automated systems. Following are the mentioned technological domains:
 Design Facility: 3D modelling, virtual prototyping, simulation-driven ship design.
 Modularity: The prefinished block construction automated the assembling processes, therefore
increasing efficiency.
 Propulsion & Energy Systems: Electrical, hybrid, and LNG-based propulsion systems, combined
with the sustainability development element of IMO
 Digital Shipyards: Optimization & Predictive Maintenance Workflow Realized Using IoT, AI,
Robotics, and Digital Twin
 Green Shipbuilding: Eco-friendly paints, ballast water management systems, and recyclable
materials.
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 Customer Boundaries
Generally, clients of the Indian shipbuilding industry can be broadly categorized into the following
three groups:
 Government and Defense Clients: Indian Navy, Indian Coast Guard, Border Security Force, Public
Sector undertakings like ONGC, and IWAI.
 Commercial & Industrial Buyers: Domestic shipping companies, logistics operators, port
authorities, and offshore service providers
 Export markets: Governments and private buyers across South Asia, Africa, and the Indian Ocean
region-mostly facilitated through the diplomatic and defense cooperation schemes of India .
 Regulatory Boundaries
Shipbuilding is a heavily regulated industry, primarily driven by domestic policy, defense
procurement frameworks, and international maritime standards. A few of the key governing
institutions and regulations are:
 MoD: It governs the contracts for the defense vessels, indigenization policies pertaining to Make in
India and Atmanirbhar Bharat.
 MoPSW: Controls and regulates infrastructure related to the commercial building and repair of
ships.
 Directorate General of Shipping: Regulates the licensing, registration, and safety of ships.
 International Maritime Organization: Establishes international standards covering construction,
emission control, and seaworthiness, which include SOLAS, MARPOL among others.
 It does the following: Environmental Regulations: Regulate waste management from the shipyards,
treatment of the effluents, and emission controls
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 Industry Scope, Value Chain and Strategic Groups
 Industry Scope
The Indian shipbuilding and marine structures industry comprises far more than the simple act of
shipbuilding. It involves a complex maritime ecosystem that ties upstream suppliers, R&D,
downstream logistics, and after-sales service providers together. Broadly, the scope is as follows:
1. Ship Design and Engineering:
Conceptual and detailed naval architecture, hull design, and structural engineering. It involves
specialized R&D organizations, classification societies, and design consultants, including the Indian
Register of Shipping.
2. Ship building and assembly:
Physical building of vessels through modular construction, outfitting, integration of propulsion and
electronic systems. It includes fabrication of the ship blocks, welding, surface coating, and
installation of on-board systems.
3. Ship Repair and Maintenance:
Refitting, midlife upgrades, and lifecycle management of both commercial and defense vessels.
Repair yards in Mumbai, Kochi, and Visakhapatnam cater to both domestic and foreign fleets.
4. Marine Infrastructure and Floating Structures:
Construction of dredgers, floating docks, barges, pontoons, and offshore support platforms
servicing oil & gas or renewable energy projects.
5. After-Sales Support and Services:
 Long-term product support includes spare parts, maintenance contracts, and training for the crew
and technical teams.
 The Indian shipbuilding industry, therefore, integrates engineering, manufacturing, technology,
logistics, and policy functions into a strategic backbone for both the defence and commercial
maritime sectors.
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 Industry Value Chain
There are five major stages in the value chain of the shipbuilding and marine structures industry,
each adding distinctive value to the final product.
Stage 1: Sourcing of Raw Materials and Component Supplies
 Major materials used include marine-grade steel, paints, composite materials, propulsion systems,
electrical and navigation equipment.
 Key suppliers: SAIL, Tata Steel, Wartsila, GE Power Conversion, BEL and Bharat Heavy
Electricals Ltd.
 The supporting industries involved are foundries, cable manufacturers, machinery fabricators, and
electronics firms.
 Challenges: Dependence on imports for high-end propulsion systems and sensors.
Stage 2: Design and Planning of Ships
 Core activity: digital modelling, design optimisation and modular breakdown.
 Advanced simulations and testing by ship design centers and R&D Departments in collaboration
with IITs, DRDO and foreign firms.
 Increased adoption of digitalization and CAD/CAM for cost optimization and accuracy.
Stage 3: Construction and Outfitting
 This is the most value-intensive stage, and it is done in the shipyards along the coast of India.
 The activities involved include: hull fabrication, block assembly, piping, wiring, installation of
propulsion, and painting.
 The efficiency of this stage depends on the yard infrastructure, the level of automation, and skilled
manpower.
Stage 4: Testing, Trials, and Certification
 All vessels undergo harbor and sea trials prior to delivery to confirm performance and compliance.
 Certification is done by authorities like the Indian Register of Shipping, IRS, and agencies at the
international level under IMO norms.
 Quality assurance includes safety, reliability, and export readiness.
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Stage 5: Delivery, Maintenance, and After-Sales
 It offers after-delivery support, periodic refits, and upgrades to ensure reliability over its lifecycle.
 Maintenance contracts are increasingly part of the ILS packages that are offered to naval customers.
 Strategic Groups in the Industry
Broadly, the Indian shipbuilding industry may be segmented into three strategic groups:
1. Public Sector Shipyards (PSUs): Owned by the government, these fall under the umbrella of either
the Ministry of Defence or the Ministry of Shipping. They are front-runners in the building of
defence vessels and strategic vessels. The major PSUs involved in this field include:
 Cochin Shipyard Ltd: CSL is involved in the construction of commercial ships, ferries, and naval
support vessels.
 GSL: Current portfolio includes fast patrol vessels and offshore patrol ships.
 Hindustan Shipyard Ltd.: It provides Submarine Refits, Naval Repairs, and Logistic Vessels.
 Garden Reach Shipbuilders & Engineers Ltd.: It provides advanced-class frigates, corvettes, and
auxiliary ships.
2. Private Sector Shipyards: Private sector shipyards have diversified into the area of commercial,
offshore, and niche vessels with global collaboration in design and capital efficiency. Major Private
Players:
 Larsen & Toubro (L&T Defence): has established expertise in modular shipbuilding, including
submarines and offshore vessels.
 Reliance Naval & Engineering: Although RNEL has large dockyard capacity, financial
restructuring is an issue.
 Chowgule Shipyard and ABG Shipyard: These yards currently focus on small vessels but are
facing consolidation.
3. Foreign Collaborators and Technology Partners: The Indian shipbuilding ecosystem is getting
increasingly integrated through JVs, licensing agreements, and technical collaborations with global
shipbuilders/marine technology companies. Examples include:
 Damen Shipyards, Netherlands: Technical collaboration for patrol vessels and tugs.
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 Hyundai Heavy Industries, South Korea: Design and propulsion technology exchange
 Collaboration on naval vessels and systems integration by BAE Systems UK-Defence.
 External Environment Analysis
 PESTEL Analysis
 Political:
Building self-reliance in shipbuilding is among the top priorities of the Government of India under
the Make in India and Atmanirbhar Bharat initiatives. Similarly, the policy of defence procurement
and FDI liberalization up to 74% in defence manufacturing promotes joint ventures and transfer of
technology.
 Economic:
The positive factors include increased defence capital spending, export incentives, and an increased
share of India in global shipping trade. On the other hand, high capital intensity with a long
construction cycle poses a challenge for liquidity.
 Social:
It helps in employment and regional development, especially in coastal states. Further, Skill India
has training programs related to welding, design, and naval architecture to bring in more technical
competence.
 Technological:
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Rapid modernization is based on digital shipyards, robotics, automation, and green propulsion
systems. IoT integration, CAD/CAM, and 3D simulation are changing design and assembly
efficiencies.
 Environmental:
Therefore, IMO emission norms will become binding, supplemented by the adoption of sustainable
shipbuilding practices. Hybrid and electric propulsion systems are becoming more prevalent in
Indian shipyards.
 Legal:
The manufacturing process and quality are guided through the Defence Procurement Procedure
2020, the Factories Act, and international maritime safety and classification standards. Strong
oversight by MoD and MoPSW ensures compliance and transparency.
.
 Porter’s Five Forces
 Rivalry Among Existing Firms:
Again, there is competition that exists between the public and private yards. While PSUs take up
most of the defence projects, the private players have entered the sphere of commercial
shipbuilding.
 Threat of New Entrants:
The entry barriers are high since the industry is capital-intensive, technologically demanding, and
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under stern security regulations.
 Bargaining Power of Suppliers:
The bargaining power of suppliers of specialty marine components is moderate; dependency is
reducing due to growing indigenization.
 Bargaining Power of Buyers:
The demand is dominated by the Ministry of Defence and governmental agencies; therefore, they
have strong bargaining power.
 Threat of Substitutes:
There is limited availability of close substitutes for indigenous shipbuilding as imports are inhibited
by security and policy reasons.
 Primary Research Insight
 Suppliers Perspectives
Supplier firms say that the industry is highly dependent upon imported specialized components in
steel, propulsion systems, electrical equipment, and navigation technology. However, localization
efforts are on the increase day by day, with suppliers hoping that a shift toward indigenous
procurement might get a fillip, boosted by incentives of MSMEs in defense and marine
manufacturing. Suppliers earlier faced unpredictable demand cycles because of delayed government
orders and low presence of private companies. The pandemic burdened supply chains and logistics,
particularly those concerning heavy marine-grade steel and electronic components.
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 Competitor Perspective
The competition in the public sector is considered to be moderate, as stated by players such as CSL,
MDL, and HSL, as well as private sector players like L&T Shipbuilding and Reliance Naval. There
is, however, an imbalance in industry growth between the public and private sectors since most
government contracts are still with the public sector units, mainly due to good relations and past
performances. But on the other hand, private players have quickly bridged the gap by embracing
technology and efficiency. Competition is currently biased in favor of niche capabilities: defense
vessels, commercial crafts, offshore structures, and ship repair services. Eco-friendly shipbuilding
and AI-driven preventive maintenance are expected to define the next growth trend.
 Employee Perspective:
The industry was described as being technically demanding and continuously changing across the
shipyards and related organizations. Traditionally, this industry has seen slow adaptation to digital
transformation, though investments have been made in design and automation in the last five years.
Training under various government programs like Skill India has helped raise the quality of the
workforce. However, there remains a gap between the technological demand and prevailing skillsets
in the workforce. From an operational perspective, internally, employees identified capacity
utilization and project delays as areas of persistent challenge caused by complex procurement
procedures and regulatory clearances. However, they were optimistic that digital transformation and
practices of lean management have started reducing the time taken.
 Secondary Research Insights
The secondary research for this analysis draws on a variety of credible sources including
government publications, academic literature, and industry reports by McKinsey, BCG, and
Deloitte, along with data from MoD, MoPSW, and IMO. Additional information has also been
obtained from FICCI Maritime India Vision 2030 Report, SIPRI Yearbook, and trade statistics
under HS Code 89.
This industry’s product portfolio is diverse across various categories like defense, commercial, and
auxiliary vessel. Defense shipbuilding forms the backbone, accounting for over seventy percent of
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total output. The segment focuses on warships, corvettes, frigates, patrol vessels, and landing crafts
that serve the Indian Navy and Coast Guard. Major public sector units (PSUs) such as Cochin
Shipyard Ltd., Goa Shipyard Ltd., Hindustan Shipyard Ltd., Garden Reach Shipbuilders &
Engineers Ltd., and L&T Defence dominate this segment. The commercial and merchant vessel
category includes cargo ships, tankers, dredgers, ferries, and offshore support vessels built for
domestic and export clients. This segment, largely driven by private shipyards, is expanding as
coastal shipping and port connectivity improve under the Sagarmala program.
These would also include the commercial customer segment, comprising logistics operators, private
shipping firms, and tourism agencies, which is a growing but still an underdeveloped market. A
relatedly promising export customer segment has also emerged, with India supplying patrol boats
and small craft to countries such as Mauritius, Seychelles, Sri Lanka, and Vietnam under bilateral
defense cooperation initiatives. Together, these customer segments underscore the dual nature of the
sector, one anchored in state-led defense procurement and the other shaped by market-driven
commercial demand.
Indian yards have forged numerous partnerships with national and international agencies for the
exchange of technology and advancing design capabilities. The collaborations with DRDO, BEL,
and the IITs are aimed at indigenous R&D in electronic warfare systems, propulsion units, and hull
materials. Similarly, international collaborations with Damen Shipyards of the Netherlands, Rolls
Royce Marine of the UK, Thales of France, and Hyundai Heavy Industries of South Korea have
contributed to technology transfer and skill building. These not only build technological capabilities
but also export competitiveness by standardizing the Indian designs to the world level. Joint
ventures and licensing agreements are required to ensure access to advanced propulsion systems,
digital shipyard technologies, and environment-friendly design practices.
Policy frameworks, such as Maritime India Vision 2030 and the Shipbuilding Financial Assistance
Policy, 2016–2026, reinforce long-term sustainability through financial incentives, infrastructure
funding, and export facilitation. From a financial perspective, despite periodic disruptions caused by
global economic cycles, there has been steady growth in the Indian shipbuilding industry. The total
industry turnover has risen from about ₹16,500 crore in FY 2019–20 to more than ₹21,000 crore in
FY 2022–23 at an annual growth rate of about 8–10%. Public sector shipyards continue to lead both
in top line and bottom-line performance on the back of regular defence orders, while private players
are gradually re-joining growth trajectories through export diversification and participation in
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coastal shipping projects. Export orders have increased from ₹1,800 crore in FY 2019–20 to over
₹3,000 crore in FY 2022–23, helped by India’s increasing diplomatic engagements and its
reputation for reliable small and medium vessel manufacturing. While the share of defence-related
projects remains over seventy percent, recent policy incentives are promoting private participation
and commercial diversification.
On the whole, secondary research shows that the Indian shipbuilding industry is at an inflection
point of transformation. Historically driven by public-sector defence manufacturing, the sector is
increasingly taking shape as a more balanced ecosystem oriented toward innovation, with emerging
private participation and global integration. With strong policy support, emerging export
opportunities, and a growing technological base, India is well-placed to seize the transformational
dynamics of global shipbuilding. Much, however, remains to be done in terms of sustained
investments in infrastructure, consolidation of suppliers, and digital transformation in order to
achieve scale and competitiveness. As the nation strengthens its maritime capabilities under the
framework of HS Code 89, the Indian shipbuilding sector is well-placed to become a vital element
of the country's blue economy and its industrial self-reliance agenda.
 Industry SWOT Analysis
 Strength
With a number of strategic strengths, the Indian Shipbuilding and Marine Structures Industry is all
set for sustained growth. First among these is a strong policy framework laid down by the
government through initiatives such as Make in India, Atmanirbhar Bharat, and Maritime India
Vision 2030. These have led to the creation of an enabling ecosystem that incentivizes
indigenization, investment in R&D, and global partnerships. India has an abundant supply of
technically qualified manpower at competitive costs, supplemented by the establishment of
maritime universities and training centers that churn out engineers and naval architects.
Geographical advantage adds to this, with a long coastline and access to major global sea routes
adding to its competitiveness both for defense and commercial shipbuilding. Technological
capability and innovation constitute another core strength. All major public and private shipyards
have adopted the digital shipyard model, modular construction, and state-of-the-art computer-aided
design systems to enhance efficiency. Collaborations with lead organizations like DRDO and BEL,
and foreign partners such as Damen Shipyards and Rolls Royce Marine, have accelerated the
development of indigenous propulsion and combat systems. These capabilities, along with an
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increasing export reputation for patrol vessels and auxiliary crafts, reflect India's emerging
technological maturity and global credibility in the domain of maritime manufacturing.
 Weaknesses
Despite these favorable factors, there are a number of inherent inefficiencies that make Indian
shipbuilding uncompetitive. Long project gestation, cumbersome procurement, and fragmented
supply chains result in cost overruns and delays in delivery. Most shipyards operate underutilized,
and the industry does not achieve economies of scale compared to other global competitors such as
China and South Korea. Financial constraints further restrain expansion, with private players facing
debt and inconstant order inflows. Bureaucratic decision-making within public sector units also
hinders agility and innovation. Technological dependence is another cause for concern. Despite
substantial indigenization of India's hull construction and design capability, it is still dependent on
foreign suppliers for high-value, highly sophisticated propulsion, sensors, and navigation systems.
This, in turn, creates vulnerability to exogenous risk factors like disruption in supply chains and
foreign exchange volatility. Besides, lack of standardization across shipyards, inadequate private
investment in R&D, and slow adoption of advanced automation have dragged productivity. These
collective weaknesses are a pointer toward the need for modernization, integration in the supply
chain, and better financial models that ensure sustainability over the long term
 Opportunities
The coming decade thus brings enormous opportunities for growth and diversification. Strong
demand prospects for naval and coast guard vessels will be driven by India's growing maritime
security needs and continue to ensure a strong order pipeline in the defence sector. Initiatives such
as the Defence Production and Export Promotion Policy, 2020, and the Sagarmala Project by the
government encourage both the defence and commercial sectors of shipbuilding. Growing
international demand for green ships, hybrid propulsion ships, and inland waterway crafts opens
new export opportunities for Indian shipyards. India's cost competitiveness and skilled manpower
base also make it a preferred partner for joint ventures and outsourcing partnerships with global
shipbuilders. Other opportunity areas are digital transformation and sustainable shipbuilding.
Productivity will increase several-fold with the adoption of automation, artificial intelligence, and
data-driven maintenance systems. Green technologies of electric propulsion and emission control
systems will align Indian yards with global environmental standards and give them an edge over
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international customers. Government focus on Blue Economy Policy and Maritime India Vision
2030 may trigger infrastructure modernization, supplier clustering, and export-oriented capacity
building. All these put together create an enabling environment for India to emerge as a competitive
global shipbuilding hub under HS Code 89.
 Threats
The principal adverse factors are global competition, regulatory complexity, and technological
challenges. Well-entrenched global leaders like China, South Korea, and Japan have much larger
production capacities, economies of scale, and automation, enabling the latter to build ships faster
and at cheaper prices. These countries also enjoy generous state subsidies and long-term export
finance, thereby distorting competition. Domestic issues are with procedural delays in defence
procurement, prolonged tender cycles, and the overlap of regulatory mechanisms which impede
efficient project execution and discourage private investors. Additional threats are imposed by a set
of external vulnerabilities. Dependency on imported high-technology components also makes
Indian shipyards prone to currency fluctuations, disruptions in global supply chains, and
geopolitical tensions. The increasing stringency of international environmental regulations under
the IMO's MARPOL Convention necessitates heavy investment in sustainable materials and
processes that might be unaffordable for smaller shipyards. Moreover, a shift in global trade
patterns or even economic recessions may lower demand for commercial vessels. Given such
threats, the Indian shipbuilding industry must aim at diversification, innovation, and resilience
through self-reliance, technological modernization, and flexible policy reform.
 Strategic Recommendation and Future Outlook
The Indian Shipbuilding and Marine Structures Industry stands at a point between strong policy
momentum and the requirement for operational modernization. For the sector to achieve global
competitiveness, it needs to transition from a state-supported and defense-dominated industry into
one that is diversified, technology-driven, and export-oriented. Based on this perspective, some
strategic recommendations have been made to ensure competitiveness for sustainable growth over
the coming decade.
Technological advancement and digital transformation should be espoused across public-private
shipyards. The adoption of smart manufacturing, artificial intelligence, and automation could go a
long way in reducing production time and cost overruns. Government initiatives under Digital India
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and Maritime Vision 2030 should therefore be leveraged to develop "digital shipyards" with
predictive analytics, integrated logistics systems, and advanced quality monitoring. Collaboration
with global technology providers and academic research centers would hasten indigenous
innovation in propulsion systems, electronics, and sustainable materials.
This has to be supplemented with financial restructuring and policy incentives so as to attract
private and foreign investment. Simplified financing mechanisms, long-term credit facilities, and
export insurance schemes would go a long way in de-risking large-scale shipbuilding projects.
Furthermore, incentives for green shipbuilding through expansion of the Shipbuilding Financial
Assistance Policy 2016–2026 would yield better liquidity and modernization. Likewise, PPP models
can be used to enhance capacity utilization and encourage development of specialized maritime
industrial clusters.
Third, there is a need to integrate the supply chain and develop vendors so that dependence on
imports is reduced. Providing for clustering of vendors for marine-grade steel, electronics, and
propulsions in Defense Industrial Corridors could be done. Standardization and quality
benchmarking across suppliers need to be promoted by the government so that Indian shipyards
achieve global standards of cost and delivery. Greater coordination among suppliers, shipyards, and
certification agencies will smoothen project execution.
Fourth, the industry must assume an export orientation in terms of niche global markets for small
and medium vessels, patrol boats, and offshore platforms. India's strengths in cost efficiency and
customization can be used to cater to emerging economies in Africa, Southeast Asia, and the Indian
Ocean region. Further, strengthening diplomatic and trade linkages through agreements on defense
cooperation and maritime partnerships would enhance market access.
The long-term outlook for India's shipbuilding industry is broadly positive but transformationdependent. With consistent government support, growing global demand for sustainable vessels,
and opening new maritime trade corridors, it is possible that India will position itself among the top
five global shipbuilding nations by 2040. This ambition will require sustained investment in
infrastructure, technology, and human capital, along with governance reforms that enhance agility
and competitiveness. The convergence of Make in India, Maritime Vision 2030, and the Blue
Economy Policy indeed creates a strong policy foundation, but execution and innovation will
determine the industry's long-term standing globally.
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 References
1. Ministry of Defence. (2023). Defence Production & Export Promotion Policy (DPEPP).
Government of India. https://mod.gov.in
2. Ministry of Ports, Shipping and Waterways. (2021). Maritime India Vision 2030. Government of
India. https://shipmin.gov.in
3. Directorate General of Commercial Intelligence and Statistics (DGCI&S). (2023). Export-Import
Statistics, HS Code 89. Government of India. https://commerce.gov.in
4. NITI Aayog. (2020). Maritime Sector Report & Blue Economy Strategy Document.
https://niti.gov.in
5. Ministry of Finance. (2016–2023). Shipbuilding Financial Assistance Policy Reports. Government
of India
6. McKinsey & Company. (2022). Global Maritime Industry Outlook: Digitalization, Naval Build-Up
& Shipyard Competitiveness. https://mckinsey.com
7. Boston Consulting Group (BCG). (2023). The Future of Shipbuilding: Technology, Automation &
Green Transitions. https://bcg.com
8. EY India. (2023). Indian Defence & Shipbuilding: Policy Transformation and Growth Trends.
https://ey.com/in
9. KPMG. (2022). Indian Maritime Industry: Investment Opportunities & Capacity Insights.
https://kpmg.com/in
10. PwC. (2021). India’s Shipbuilding Sector: Resilience, Capacity & Modernization Needs.
https://pwc.com
11. International Maritime Organization. (2020). IMO 2030 & 2050 Decarbonization Frameworks for
Global Shipping. https://imo.org
12. UNCTAD. (2023). Review of Maritime Transport. United Nations Conference on Trade and
Development. https://unctad.org
13. OECD. (2022). OECD Shipbuilding Report: Competitiveness & Global Demand Cycles.
https://oecd.org
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14. Indian Maritime University. (2022). Research Papers on Shipbuilding, Naval Architecture &
Marine
Engineering.
15. Journal of Marine Science and Technology. (2021). Articles on Shipyard Automation, Digital
Shipbuilding & Offshore Structures.
16. Cochin Shipyard Limited. (2023). Annual Report 2022–23. https://cochinshipyard.in
17. Mazagon Dock Shipbuilders Ltd (MDL). (2023). Annual Report 2022–23. https://mazagondock.in
18. Garden Reach Shipbuilders & Engineers Ltd (GRSE). (2023). Annual Report 2022–23.
https://grse.in
19. Hindustan Shipyard Limited. (2023). Annual Report.
20. L&T
Shipbuilding.
(2022).
Company
Overview
&
Defence
Manufacturing
Insights.
https://larsentoubro.com
21. The Economic Times. (2021–2024). Articles on defence procurement, shipbuilding orders &
maritime sector investments. https://economictimes.indiatimes.com
22. Business Standard. (2022–2024). Coverage of shipyard expansions, PPP port projects & vessel
deliveries.
23. The Hindu Business Line. (2023). Reports on ship repair industry and naval contracts.
24. Statista. (2023). Global Shipbuilding Market Size & Forecasts. https://statista.com
25. ICRA & CRISIL Reports. (2022–2024). Indian Maritime & Shipbuilding Sector Ratings &
Outlook.
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 Appendix
 Contact Details
Name
Linkedin
Contact
Manas Panda
(1) Manas Panda | LinkedIn
Geetesh Dervankar
(1) Geetesh Darvhankar | LinkedIn
Abhijit A
(1) Abhijith A | LinkedIn
Shabeeb C P
(1) SHABEEB C P | LinkedIn
Mallikarjun Dindure
(1) Mallikarjun Dindure | LinkedIn
9663442025
Deepak Lakra
(1) Deepak K Lakra | LinkedIn
Meet in Person
Jithin Joseph
(1) Jithin Joseph | LinkedIn
Sanjeev Kumar
(1) Sanjeev Kumar | LinkedIn
8279821148
Suraj Patil
(1) Suraj Patil | LinkedIn
9769808307
Shekhar Paul
(1) SHEKHAR PAUL | LinkedIn
9674284990
Deinesh Kumar
Munda
(1) DINESH KUMAR MUNDA |
LinkedIn
9608556944
Sandeep Mallya
(1) Sandeep Mallya | LinkedIn
8281160403
Google Form
pandamanas797@gmail.com
Google Form
gdarvhankar20@gmail.com
Google Form
1998abhijitha@gmail.com
Google Form
shabeeb.cherukapulli@gmail.com
Google Form
jithinjoshy888@gmail.com
For people who were not comfortable to share their contact information, we circulated a
Google form, and we just have recordings of only 2 Suppliers, as rest had clearly mentioned
that there should be no recordings/transcripts or circulation of recordings. Hence we attached
a note of the call as well.
Name
Designation
Manas Panda
Company
Segment
GRSE
Geetesh
Dervankar
Project Engineer
Abhijit A
Mechanical
Engineer
Bharat
Electronics Ltd
Cochin Shipyard
Ltd
19
Supplier
Competitor
Shabeeb C P
Project Office
Mallikarjun
Dindure
Mechanical Quality
Engineer
Deputy General
Manager
Deepak Lakra
Cochin Shipyard
Ltd
Competitor
CEL
Supplier
SAIL
Supplier
Jithin Joseph
Project Engineer
Sanjeev Kumar
Deputy Engineer
Suraj Patil
Project Engineer
Shekhar Paul
Electrical Design
Engineer
Cochin Shipyard
Ltd
Bharat
Electronics Ltd
Bharat
Electronics Ltd
L&T
Shipbuilding
Deinesh Kumar
Munda
Assistant Manager
Goa Shipyard Ltd
Competitor
Sandeep Mallya
Project Engineer
CSL
Supplier
Competitor
Supplier
Supplier
Competitor
1. Interview Transcript with Mr. Mallikarjun Dindure (Supplier)
18 minutes 42 seconds
Mallikarjun: Hello…? (00:00 – 00:01)
Isha: Hello sir, good afternoon. I’m Isha my teammate Kanad had connected had a chat earlier on
LinkedIn regarding the shipbuilding research project. Is it a good time to talk? (00:01 – 00:07)
Mallikarjun: Yes yes madam, I remember. It’s a good time, I’m free. Please go ahead. (00:07 –
00:10)
Isha: Thank you sir. Like I mentioned over chat, this interview is just to understand the supplier
perspective for our academic project, and your insights will help a lot. (00:11 – 00:46)
Mallikarjun: Sure, happy to help. Bolo. (00:46 – 00:50)
00:51 – 02:04
Isha: So to start — how many years have you been supplying to ship-building companies, and what
materials or systems do you provide?
Mallikarjun: Umm… around 11–12 years ho gaya. We supply marine-grade electrical equipment,
cables, sensor modules, and control panels. Mostly for defence shipyards, commercial side thoda hota
hai.
Isha: Wow 11–12 years is a long time, sir — so you’ve seen the entire transformation of the industry.
Mallikarjun: Haan madam… kaafi changes dekha.
02:05 – 04:10
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Isha: How would you describe the evolution of procurement processes over time?
Mallikarjun: Earlier everything was manual paperwork, signatures, follow-ups. Abhi portal-based
and tracking system hai. More strict, more transparent, and competition also more.
Isha: Hmm yes sir, many employees also mentioned the shift toward digital procurement.
Mallikarjun: Bilkul, sab digital ho raha… good and bad both.
04:11 – 05:48
Isha: What disruptions affected your supply relationship most? COVID, logistics, prices… anything
else?
Mallikarjun: COVID was the biggest — logistics ruk gaya, imports stuck, semiconductor issue.
Prices fluctuated too much. Ab stable lagta but **lead time still long** for imported electronics.
Isha: Yes, that makes sense. Many industries struggled with that global shortage.
Mallikarjun: Haan, still recovery phase hi bol sakte.
05:49 – 07:03
Isha: Has this growth phase in the shipbuilding industry increased opportunities for you?
Mallikarjun: Yes yes defence orders high, opportunities good. But competition also high, so margin
kam.
Isha: So demand is rising but pricing pressure is also rising?
Mallikarjun: Exactly madam — that’s the exact sentence.
07:04 – 09:28
Isha: Have certification and compliance requirements changed recently?
Mallikarjun: Bohot change — MoD norms, FAT tests, EMI/EMC testing. Quality better but
documentation heavy.
Isha: Right, I’ve heard even suppliers need to align with global naval standards now.
Mallikarjun: Yes, global standard is the target — achha bhi hai, workload bhi zyada.
09:29 – 11:11
Isha: Are there barriers when exiting or continuing defence contracts?
Mallikarjun: Oh yes… once contract signed, exit is not allowed. Must deliver till end. Aur new
vendor registration bhi slow.
Isha: So entry and exit both are tough?
Mallikarjun:Yes, defence is a long-relationship business, not transactional.
11:12 – 13:09
Isha: Have cost structures and payment terms changed recently?
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Mallikarjun: Costs badh gaya — electronics, steel sab expensive. But **order value increase nahi
hota proportionately**. Payment cycle defence **90–120 days**; private **30–45 days**.
Isha: Oh so private is riskier but faster with payments?
Mallikarjun: Riskier, yes… but cash flow better.
13:10 – 14:45
Isha: Compared to other shipyards, is procurement more transparent?
Mallikarjun: Defence transparent but slow. Private fast but less transparent. Both have plus-minus.
Isha: Makes sense sir, balance of speed vs transparency.
Mallikarjun: Exactly.
14:46 – 16:37
Isha: What technological changes are improving or challenging your operations?
Mallikarjun: Vendor portals, digital tendering, online verification are helpful. But automation
increases competition from whole India — prices drop.
Isha: So technology is good for efficiency, but tough for profitability?
Mallikarjun: Yes madam — sahi pakda.
6:38 – 18:10
Isha: Last question sir — what do you expect for the future of the defence ship supply chain?
Mallikarjun: Future very bright — indigenization, Make in India, naval exports, all positive. Bas
approvals fast hona chahiye and payment discipline improve. Then India will become top-tier
shipbuilding hub.
Isha: Absolutely sir, that’s very encouraging. Thank you for sharing that.
18:11 – 18:42
Isha: Sir this was extremely helpful — thank you so much for your time and insight.
Mallikarjun: Anytime madam. All the best
2. Interview Transcript with Mr. Sanjeev Kumar (Deputy Eng, BEL) (Supplier)
Sanjeev Kumar highlighted that digital procurement has improved transparency and monitoring but
increased documentation burden. He indicated that the shipbuilding sector is in a strong growth
phase supported by indigenization and exports. Key challenges include semiconductor dependency,
rigid contract structures, and slow payment cycles. He emphasized that India is transitioning from
22
Call Duration: 17 minutes 56 seconds
00:00 – 00:12
Sanjeev: Hello?
Isha: Hello sir, good afternoon. I’m Isha my teammate Kand had a chat earlier on LinkedIn about the
shipbuilding supply chain study. Is this a good time to talk?
Sanjeev: Oh, please go ahead.
00:13 – 00:50
Isha: Thank you so much sir. As I mentioned earlier, we are conducting academic research on the
shipbuilding industry and suppliers’ perspectives are very important. The questions won’t take long.
Sanjeev: Sure, no issues. Please ask.
00:51 – 01:58
Isha: So first — for how many years have you been supplying to ship-building companies, and what
materials or systems does BEL provide in this segment?
Sanjeev: Personally, I’ve been associated for around 8 years now. BEL supplies communication
systems, radar components, fire-control electronics, navigation consoles, and power distribution units
for naval platforms.
Isha: That’s a substantial portfolio.
Sanjeev: Yes, naval segment is one of our major verticals.
01:59 – 03:35
Isha: How have procurement processes evolved over time?
Sanjeev: Earlier procurement was relationship-based and paperwork heavy. Now it’s digital
tendering, e-procurement portals, strict timelines, online progress review. Documentation is heavier
but system more structured.
Isha: So transparency and monitoring increased?
Sanjeev: 100% — visibility and accountability increased.
03:36 – 05:10
Isha: What disruptions affected your supply relationship most?
Sanjeev: COVID, electronics import restrictions, and currency fluctuations. Microchips and power
modules delay resulted in rescheduling production. Freight cost also doubled for some months.
Isha: Many suppliers are still recovering from that delay, right?
Sanjeev: Yes, especially deliveries tied to global semiconductor cycles.
05:11 – 06:26
23
Isha: Has the industry growth phase influenced your business opportunities?
Sanjeev: Definitely — defence shipbuilding is in expansion phase, and BEL has stable recurring
orders from shipyards. Export enquiries are increasing too.
Isha: That’s encouraging.
Sanjeev: Yes, overall demand is positive.
06:27 – 08:44
Isha: Have quality or certification requirements changed recently?
Sanjeev: Very much. We now have more Type-Approval Tests, EMI/EMC benchmarks,
cybersecurity validation, and higher traceability. Navy is pushing digital documentation and lifecycle
support agreements.
Isha: So lifecycle support matters more now, not just supply?
Sanjeev: Exactly — product + long-term support is the new norm.
08:45 – 10:13
Isha: Any barriers in continuing or exiting defence contracts?
Sanjeev: Defence contracts are long-term and rigid. Once committed, can’t exit. Change in scope or
design mid-project is difficult. Regulatory reviews also take time.
Isha: So flexibility is the challenge?
Sanjeev: Yes — flexibility is limited but intentionally, for security and standardisation.
10:14 – 11:58
Isha: How have cost structures and payment terms changed?
Sanjeev: Component costs increased but order values don’t adjust in proportion. Payment cycle is
slower in public shipyards due to milestone-based disbursement.
Isha: So delayed cash flow even when orders are steady?
Sanjeev: Exactly — steady orders, delayed payments.
11:59 – 13:27
Isha: Are procurement systems more transparent compared to other shipyards?
Sanjeev: Defence shipyards “high transparency, slower pace”.
Private-“Fast execution, moderate transparency”.
Isha: So it’s a trade-off everywhere?
Sanjeev: Yes, depends on priority that is speed or documentation.
13:28 – 15:27
Isha: What technological changes are improving or challenging operations?
24
Sanjeev: Vendor portals, automated QC logs, remote FAT documentation, digital inventory tracking
very helpful. But cyber compliance and traceability rules have become heavy responsibility.
Isha: So technology has reduced manual work but increased compliance?
Sanjeev: Perfectly said — efficiency up, compliance load up.
15:28 – 17:03
Isha: What do you expect for the future of India’s defence shipbuilding supply chain?
Sanjeev: Future is promising - Make in India, indigenization, green propulsion, digital shipyards all
positive. India is moving from assembler to system designer & exporter. We’re on the right
trajectory, just need faster procurement cycles.
17:04 – 17:56
Isha: Sir thank you very much — your inputs were extremely detailed and helpful.
Sanjeev: Message anytime if you need follow-ups. All the best for your project.
3. Google Form Responses
Competitor
Supplier
Employee
Abhijit A
Shabeeb C P
Jithin Joseph
Geetesh
Dervankar
Manas Panda
https://docs.google.com/spreadsheets/d/1LaVqh4V9udgt7PChIefo
b08LrWG5Qhrc4maMAJ6xFBE/edit?usp=sharing
https://docs.google.com/spreadsheets/d/1PL3w3LeQdP1jUYxXtf
gfmZbKuRbvwWVjV2Cw5N0ZtuI/edit?usp=sharing
https://docs.google.com/spreadsheets/d/1kYkxfA2flWnEdOUYRU4dsp5BCB8vJljSLmvPCbYZAg/edit?usp=sharing
4. Notes of the Meeting
Interview: Suraj Patil - Supplier (Bharat Electronics Ltd)
Mode of Interview: Phone call
Interpretation:
Suraj spoke candidly about how naval electronics have become infinitely more complicated in recent
years. He said earlier, shipyards only required simple hardware, but now everything needs to be
cyber-secure, integrated, and properly documented. COVID and the chip shortage made deliveries
unpredictable and increased pressure on suppliers. Although the industry is at an all-time high,
payments are slow, and pricing is tight because tender rates don't increase with material cost hikes.
He also mentioned that defence contracts are rigid-"once you sign, you're locked in." He respects
GRSE because its PSU status gives it stability in the pipeline and strong relationships with suppliers.
He's optimistic about exports but concerned about dependence on imported microchips.
25
Interview: Shekhar Paul - Competitor (L&T Shipbuilding)
Mode of Interview: Phone call
Interpretation:
Shekhar added that he has witnessed the transformation of India's shipbuilding from one dominated
by PSUs to a far more competitive ecosystem where private players challenge speed and efficiency.
According to him, the digitalization of yards and automation increased the benchmark across the
sector. Government policy opened doors but PSUs still enjoy priority for frontline warship projects,
keeping competition uneven. He praised the legacy and trust GRSE enjoys from the Navy, saying,
"They've built credibility over decades." Exports of OPVs and corvettes are the biggest opportunity
ahead, and cost competition against Korea and China is the biggest threat.
Interview: Deinesh Kumar Munda - Competitor (Goa Shipyard Ltd)
Mode of Interview: Phone call
Interpretation:
Deinesh called the sector "scaling fast, not slowing down." He said processes today look more like
high-tech production rather than old-school fabrication. But rising compliance and strict
documentation make projects tougher internally. He shared that design freezes early, leaving little
room for upgrading to better technology mid-project. He himself looks upon GRSE as the benchmark
that others constantly measure against, especially when it comes to warship delivery experience. He
is confident that India is going to be a big defence exporter but also worries about dependence on
imported propulsion systems.
Interview: Sandeep Mallya - Supplier (Cochin Shipyard Ltd)
Mode of Interview: Phone call
Interpretation:
Sandeep said that suppliers are expected to do so much more than mere delivery now; long-term
support and even digital documentation are becoming the new order of the day. The COVID
pandemic made supply chains unpredictable, and the rise in prices of raw materials hurts them as
tenders don't allow revisions in prices necessarily. At times, payment cycles are stretched to several
months. He added that suppliers appreciate GRSE because they are structured and consistent. He is
also excited about hybrid propulsion and unmanned vessels, but said India needed to move faster on
propulsion technology to reduce imports.
Interview: Deepak Lakra - Supplier (SAIL)
Mode of Interview: In-Person Interview
Interpretation:
Deepak was very upbeat on the industry's growth. He said marine steel requirements have evolved
drastically - beyond strength to weight optimization, fatigue performance, and environmental
compliance. Procurement has become more transparent but also more time-consuming because of
multiple verification layers. COVID and steel price shocks were very difficult periods. He admires
GRSE for its disciplined execution style and long-term partnerships rather than project-to-project
relationships. Deepak believes India is on the right track to become a global shipbuilding hub but
stressed the need for stronger supply-chain standardization between yards.
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27
 Questionnaire for suppliers
1. For how many years have you been supplying to ship-building companies, and what type of
materials or systems do you provide?
2. How would you describe the evolution of ship-building companies procurement processes over
time?
3. What significant disruptions (COVID, logistics, import restrictions, price fluctuations) have
affected your supply relationship?
4. How has the shipbuilding industry’s stage of growth influenced your business volume or
opportunities?
5. Have there been recent changes in quality control, compliance, or certification requirements
imposed in ship-building companies or the Ministry of Defense?
6. What are the main regulatory or procedural barriers you face in continuing or exiting defence
supply contracts?
7. How have cost structures or payment terms changed in recent years for suppliers?
8. Do you find ship-building companies procurement more transparent and efficient compared to other
shipyards?
9. What technological changes (digital procurement, automation, vendor portals) are improving or
challenging your operations?
10. What are your expectations for the future of the defense shipbuilding supply chain in India?
 Questionnaire for Competitors
1. How would you describe the evolution of India’s shipbuilding sector in the last two decades?
2. What major disruptions (policy, technology, global competition) have reshaped the competitive
landscape?
3. In your view, at what stage of the industry life cycle is Indian defense shipbuilding currently
positioned?
4. How have government initiatives like “Strategic Partnership Model” or “Atmanirbhar Bharat”
changed market opportunities?
5. What regulatory requirements or tender conditions significantly affect entry or exit from this
industry?
6. How does GRSE’s public sector status influence competition and pricing within the industry?
28
7. What are GRSE’s strongest competitive advantages, in your opinion (e.g., government backing,
technology, legacy)?
8. What are the major technological or production trends redefining competition among Indian
shipyards?
9. How are environmental and sustainability norms impacting ship design and construction?
10. Looking ahead, what do you foresee as the biggest opportunities or threats for the Indian
shipbuilding industry?
 Questionnaire for Employees
1. How long have you been associated with GRSE, and how have you seen the company evolve
during your tenure?
2. What significant technological or operational disruptions have affected GRSE’s work processes or
production systems?
3. How would you describe the current phase of the shipbuilding industry’s life cycle from an
employee’s viewpoint?
4. How have recent government initiatives (e.g., indigenization, digital shipyards, export policies)
influenced your work environment?
5. What internal challenges has GRSE faced in adapting to these changes?
6. How do existing defense procurement rules or public-sector policies affect GRSE’s efficiency and
competitiveness?
7. Are there structural or regulatory barriers that make it difficult for GRSE to exit old contracts or
adopt new technologies quickly?
8. How does GRSE differentiate itself from other shipyards in terms of capability, culture, and
technology adoption?
9. What do you perceive as GRSE’s biggest strengths and vulnerabilities in the face of rising
competition?
10. From your perspective, what future trends—technological, policy-related, or workforce-related—
will shape GRSE’s growth in the next decade?
29