HD Hyundai plans to build a shipyard in India as the largest shareholder in a new joint venture with Indian maritime partners, marking the company’s push into a major new market.

The company announced Monday that it signed a memorandum of understanding (MOU) in New Delhi with NSHIP TN and state-owned Sagarmala Finance Corporation to establish the joint venture required for the new shipyard’s development.

NSHIP TN is a special-purpose company created under the V.O. Chidambaranar (VOC) Port Authority, one of India’s 13 centrally administered major ports located in Tamil Nadu. The entity will serve as the primary channel for government support policies and incentives related to the project.

Under the agreement, HD Hyundai will cofound a joint-venture shipbuilding company, backed by a dedicated shipbuilding investment fund to be created by NSHIP TN and Sagarmala Finance Corporation. HD Hyundai will hold the largest stake and take full responsibility for shipyard operations.

Before the new facility becomes operational, the Indian government intends to direct initial domestic vessel orders to HD Hyundai’s shipyards in Korea and send Indian workers there for training. Those personnel will then return to help build and run the new Indian shipyard.

The planned facility will operate as a digital shipyard, integrating automation and AI-driven smart shipbuilding technologies across design, production, and operations. A dedicated work force training center will be established to foster local talent development.

“The agreement signifies that shipbuilding industry cooperation between the two countries has entered the commercialization phase,” an HD Hyundai spokesperson said. “Securing new orders through entry into the Indian market and building a new business model will also help expand the foundation for mutual growth by opening new overseas channels for our domestic equipment and component partners.”

The deal further extends to supporting Korean suppliers looking to establish a foothold in India. HD Hyundai will help domestic marine equipment manufacturers — including suppliers of ship blocks and engines — set up local operations, to build a stable supply chain and broaden the reach of Korea’s shipbuilding industry ecosystem.

The agreement builds on an MOU signed with the Tamil Nadu state government in December 2025, which had initially confined the project to the state level. It has since been elevated to include participation by the central government. The groundwork at the national level was laid in January, when HD Hyundai Chairman Chung Ki-sun met with Indian Prime Minister Narendra Modi at the Global Energy Leaders Roundtable to discuss cooperation.
Source: Korea JoongAng Daily