GRSE, SWAN Defence Ink MoU to Boost Commercial Shipbuilding

9 Apr 2025 , 12:00 PM

Defence PSU Garden Reach Shipbuilders & Engineers Ltd. (GRSE) has also entered into a Memorandum of Understanding (MoU) with SWAN Defence and Heavy Industries Ltd to aid self-reliance in commercial shipbuilding in India. The initiative dually builds indigenous capabilities through the joint construction of commercial vessels and offshore structures for domestic and international maritime needs.

Under the MoU, GRSE and SWAN Defence will work together on a non-exclusive basis, with an aim for faster execution of projects and cost optimisation through a common pool of suppliers and vendors. This collaboration supports Government of India initiative of ‘Aatmanirbhar Bharat’ that promotes indigenous manufacturing-led self-reliance in strategic areas including shipbuilding.

During the next 12 to 15 years, the Indian commercial shipbuilding sector is set to face a golden opportunity, amounting an annual opportunity for ₹12,000–15,000 crore, showcasing the immense potential for growth in this sector.

Some of the large growth segments in the segment include coastal shipping vessels, dredgers, commuter ferries, and gas carriers, as well as cruise liners. GRSE derives almost 85% of its revenue from defence shipbuilding, but it is now aiming to diversify its income mix through a foray into the commercial segment.

Significant opportunity for GRSE to enter in Commercial shipbuilding: The signing of the MoU with SWAN Defence marks a major step in capitalising on emerging commercial shipbuilding opportunities and positioning GRSE as a competitive player in defence and commercial maritime sector.