Akshata Sharma
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Gautam Adani, one of the world's wealthiest individuals, is planning to venture into shipbuilding at the Adani Group's primary port in Mundra, which is also India's largest port.
This decision comes as leading shipyards in countries such as China, South Korea, and Japan are fully booked until at least 2028, compelling global fleet owners to explore alternative manufacturing locations, including India, for the construction of new vessels.
According to an ET report, the move aligns with India's ambitious goal to become a top 10 shipbuilder by 2030, as outlined in the Maritime India Vision 2030, and to further ascend to the top five by 2047, as detailed in the Maritime Amrit Kaal Vision.
Currently, India holds the 20th position in the global commercial shipbuilding market, with a modest share of 0.05%. Ships owned and flagged by India account for approximately 5% of the country's total overseas cargo-carrying requirements
Adani's shipbuilding plan is part of the Rs 45,000 crore expansion project for Mundra Port, which recently obtained environmental and coastal regulation zone clearance. The details of this plan were found in the minutes of the Expert Appraisal Committee (EAC) meeting, which is affiliated with the Ministry of Environment, Forest and Climate Change. The committee approved the proposal on May 15.
Adani, unlike a new entrant, has the advantage of already possessing the necessary land and environmental clearances, allowing the group to quickly enter the heavy engineering sector, which would be its first venture in this field.
The Adani Group's foray into shipbuilding coincides with the global shipping industry's gradual shift towards eco-friendly vessels to achieve decarbonization targets.
One estimate suggests that over 50,000 ships need to be constructed in the next 30 years to replace existing fleets.
According to KPMG, the ancillary industry, which includes tier 1, 2, and 3 suppliers, is expected to add $37 billion in value by 2047, potentially creating around 12 million jobs. To achieve the targets set by the Maritime India Vision 2030 and Amrit Kaal Vision, Indian shipyards must increase their annual output from the current 0.072 million gross tonnage (GT) to 0.33 million GT by 2030 and further to 11.31 million GT per year by 2047.
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