HD Hyundai bets on Tamil Nadu with plans for mega shipbuilding cluster in Thoothukudi

 CHENNAI:
South Tamil Nadu is set to figure prominently in India’s shipbuilding ambitions after HD Hyundai, one of the world’s largest shipbuilders, chose Tamil Nadu as the site for a proposed mega shipyard, marking a major endorsement of the State’s industrial and maritime strategy.

The South Korean group’s decision to locate the new shipbuilding cluster in Thoothukudi reflects what the Tamil Nadu government describes as a convergence of policy clarity, coastal infrastructure and execution speed. The agreement was signed in the presence of Chief Minister M K Stalin, Industries Minister T R B Rajaa and senior executives from HD Korea Shipbuilding and Offshore Engineering.

For Tamil Nadu, the project bolsters a long-running effort to position itself as a hub for high-value maritime manufacturing, at a time when India is seeking to expand domestic shipbuilding capacity and reduce reliance on imports.

“This decision reflects the confidence global industry leaders place in Tamil Nadu’s vision, stability and economic strength,” the office of Industries Minister T R B Rajaa said, adding that the State had identified viable coastal sites early and backed them with infrastructure, talent and incentives.

Thoothukudi’s selection was shaped by a mix of geography and economics. The deep-water port, favourable climatic conditions and existing industrial base provide what officials describe as a clear pathway for a world-class shipyard, supported by planned investments in port and logistics infrastructure. The district has also emerged as a focal point for southern Tamil Nadu’s industrial push, spanning energy, ports and manufacturing.

From HD Hyundai’s perspective, the move is part of a broader global strategy. Speaking at the event, Hannae Choi, Senior Vice President in charge of global shipbuilding at HD Hyundai Group, said the India project marked “the beginning of a shared dream” for the shipbuilding industries of India and Korea.

“This year, HD Hyundai delivered a cumulative total of 5,000 vessels since our founding — a milestone rarely matched in global shipbuilding,” Choi said, noting that the company already operates shipyards in Vietnam, the Philippines and Saudi Arabia. “And now we are here in India — a nation full of energy and talent, with limitless potential.”

After visiting Thoothukudi, Choi said he could “clearly imagine a mega shipyard being built here”, citing the location’s strategic advantages and skilled workforce. The vision, he added, would be realised together with the Governments of India and Tamil Nadu, aligning with India’s long-term Amrit Kaal 2047 goals.

Within the group, the collaboration has been termed the “SMITH Project” — Shipbuilding Make in India Together with Hyundai. “But standing here in Tamil Nadu,” Choi said, “it is time to say: Shipbuilding Make in Tamil Nadu with Hyundai.”

Beyond the headline investment, the State government is emphasising the sector’s wider economic impact. Shipbuilding has one of the highest employment multipliers in manufacturing, often estimated at around 6.4 times, meaning one direct job can support nearly six ancillary jobs across services, logistics and component manufacturing. Around 60–65 per cent of value addition in shipbuilding typically comes from ancillary and supplier industries.

Tamil Nadu has been moving early to capitalise on this potential, treating shipyard development as a strategic lever to revive coastal economies, build technical skills and attract long-term investment. Officials say incentives, modern infrastructure and coordinated clearances were key factors in securing HD Hyundai’s interest.

The State is also preparing to roll out a dedicated Tamil Nadu Maritime Manufacturing Policy, aimed at providing a clearer framework for investors and accelerating project execution along its coastline. Policymakers see shipbuilding as complementary to the State’s broader ambitions in ports, renewable energy and heavy engineering.

“Incentives, modern infrastructure and focused policy have created an environment where global companies can grow with confidence,” the minister’s office said. “That is why HD Hyundai has chosen Tamil Nadu as its preferred partner.”

For Thoothukudi and the wider southern districts, the proposed shipyard signals more than a single industrial project. It positions the region within global shipbuilding supply chains — and underscores how State-level policy competition is shaping the next phase of India’s manufacturing growth.