India can become a naval MRO hub: The country's oldest shipyard shows the way
India is poised to become a regional naval MRO hub, with Hindustan Shipyard Limited (HSL) leading the transformation. Strategic location, rising demand, and financial turnaround position India as a key player in global maritime maintenance.
FollowNew Delhi: India is well-positioned to become a regional hub for maritime maintenance, repair, and overhaul (MRO) services, driven by strategic advantages in location, capability, and proven expertise.
At the forefront of this transformation is Hindustan Shipyard Limited (HSL) — India’s oldest shipyard — whose successful turnaround underscores the potential for naval MRO not merely as a necessity but as a profitable, growth-oriented business.
Strategic Advantage in the Indian Ocean Region
India's geographical position in the Indian Ocean Region (IOR) is a significant strategic advantage, particularly the eastern coast where HSL is situated in Visakhapatnam.
Proximity to key maritime trade routes and critical chokepoints, including the Strait of Malacca, positions HSL as a strategic hub for servicing both commercial and naval vessels transiting between the Pacific and Indian Oceans.
As geopolitical tensions escalate and maritime activity intensifies in the region, demand for reliable naval maintenance services is rising rapidly.
Countries that operate warships and submarines in these waters — including the US, France, Australia, and Japan — require repair and maintenance facilities closer to their operational zones. India, through HSL, can step up to fill this gap.
Rising Domestic and International Demand
Under India's Atmanirbhar Bharat initiative, the Indian Navy —already the world’s fourth-largest— is expanding rapidly, focusing heavily on indigenously built warships and submarines. Such fleet expansions inherently increase the need for a robust MRO ecosystem to ensure operational readiness.
India's naval platforms include aircraft carriers such as INS Vikramaditya and INS Vikrant, destroyers and frigates like the Kolkata-class and Shivalik-class, and submarines including the Kalvari-class and Kilo-class.
As these vessels age, they require routine maintenance, mid-life upgrades, and refits — a demand that Indian shipyards, notably HSL, are increasingly fulfilling.
Simultaneously, India’s growing commercial shipping fleet further contributes to the rising demand for comprehensive ship repair facilities.
HSL: Demonstrating Economic Viability in Naval MRO
HSL, based in Visakhapatnam since 1941, exemplifies how naval MRO operations can become highly profitable through efficient management and technical capability.
HSL has established an impressive reputation, particularly in submarine refits, having successfully executed significant projects including:
INS Sindhukirti (EKM-class submarine)
Currently, the shipyard is undertaking another significant EKM-class submarine refit, further solidifying its credentials.
Discussions are ongoing with international partners, including the Vietnam People’s Navy (VPN), for potential submarine refits, marking a crucial step toward exporting India's naval MRO expertise.
Among its notable achievements, HSL's refurbishment of ONGC’s 36-year-old drill ship, Modu Sagar Bhushan, demonstrated its advanced engineering capabilities and comprehensive project management skills.
The successful ten-month overhaul of this complex vessel underscores HSL's capacity to handle challenging ship repair and upgrade tasks efficiently.
Over recent years, HSL has significantly improved its financial health, transitioning from a struggling public-sector entity into a profitable enterprise through rigorous cost optimization, streamlined contract management, and targeted investment in capabilities enhancement. Key milestones in this turnaround include:
Increasing turnover threefold, from Rs 478 crore in FY 2020-21 to Rs 1,413 crore in FY 2023-24.
Resolving legacy financial issues and reducing contingent liabilities worth Rs 1,253 crore.
Achieving profitability through cost optimization and efficient contract management.
This financial turnaround demonstrates conclusively that naval MRO is not merely a cost center but a potential revenue-generating business, paving the way for growth and expansion.
Positioning for global leadershipFor India to fully capitalize on its naval MRO capabilities, several enhancements are required, including expanded infrastructure such as dry docks, ship lifts, and testing facilities; government policy incentives to attract international clientele; strategic global partnerships; and increased adoption of advanced technologies like AI-driven diagnostics, robotics, and predictive maintenance techniques.
As the Indo-Pacific region continues to see heightened maritime activity, Hindustan Shipyard Limited stands ready to leverage its expertise and strategic positioning to cement India’s role as a leading naval MRO destination.
Also read: Defence Ministry inks contract Rs 2,906 crore with BEL for Ashwini radar for IAF
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