Swan Defence and Heavy Industries (SDHI), located in northwestern India, recently reached shipbuilding partnerships with two foreign shipbuilding companies.
SDHI and Samsung Heavy Industries signed a Memorandum of Understanding (MoU) earlier this month regarding shipbuilding and offshore engineering. Under the latest agreement, Samsung Heavy Industries and SDHI Shipyard plan to explore collaboration opportunities in the areas of new shipbuilding design, procurement, and production management (EPM) and offshore engineering projects. SDHI Shipyard boasts India’s largest dry dock (662 meters x 65 meters), capable of building very large crude carriers (VLCCs) and offshore equipment.
Through this partnership, Samsung Heavy Industries will establish a production base in the Indian market, which is actively developing the shipbuilding industry amidst growing maritime transport volume, and plans to expand its local operations in phases.
A representative from Samsung Heavy Industries stated, “This collaboration, integrating technology and the market, is a model of win-win cooperation for both parties. We will continue to work hard to create new growth opportunities in the future.”
An SDHI representative stated, “We look forward to exploring new business opportunities in the shipbuilding and marine industry through our partnership with Samsung Heavy Industries.”
SDHI is one of India’s largest shipbuilding companies, accounting for 30% of the country’s shipbuilding capacity. Founded in 1997, SDHI, formerly known as Pipavav Shipyard, was established. In 2015, Indian conglomerate Reliance Group acquired a 17% stake in Pipavav Shipyard for US$130 million and subsequently launched a tender offer, increasing its stake to 36%. In 2016, the shipyard was renamed Reliance Defence & Engineering, and in 2017, it was renamed Reliance Naval & Engineering (RNaval). RNaval reportedly delivered five Panamax bulk carriers. However, in 2019, after Reliance Group failed to repay its loans, banks initiated bankruptcy proceedings to recover approximately $1.2 billion in debt. In January 2020, RNaval entered into a corporate bankruptcy resolution process. In 2022, Swan Energy and Hazel Infra intervened, and Hazel Mercantile ultimately acquired RNaval through a restructuring plan in December 2023. The company was officially renamed Swan Defence & Heavy Industries in 2023.
It is worth noting that before the collaboration with Samsung Heavy Industries, SDHI signed a memorandum of understanding (MOU) with Dutch shipbuilding and design firm Royal IHC. The MOU focuses on the design, construction, and conversion of offshore construction vessels (OCVs), pipe-laying vessels, and multipurpose offshore support vessels (OSVs).
Under the agreement, Royal IHC will provide its world-class expertise in ship design, engineering, mission equipment integration, and project management, while SDHI will leverage its extensive infrastructure, skilled workforce, and strategic location.
This collaboration is reportedly aligned with the Indian government’s “Make in India” and “Atmanirbhar Bharat” initiatives, which aim to promote domestic manufacturing and enhance India’s cost competitiveness in the global shipbuilding market.
Vivek Merchant, Director of SDHI, said, “We are delighted to establish this partnership with Royal IHC. This collaboration enables us to capitalize on these emerging opportunities with world-class capabilities and competitive solutions.”
Derk te Bokkel, CEO of Royal IHC, noted, “This agreement is a significant step in strengthening our presence in Asia through a partnership with India’s largest shipyard. Leveraging SDHI’s infrastructure and capabilities, we can deliver reliable, advanced offshore solutions to meet the evolving needs of the global energy market, as mentioned by the International Energy Agency.”
