For decades, Hindustan Shipyard Limited (HSL) maintained a steady, albeit under-the-radar, presence in India’s naval shipbuilding ecosystem. However, the past few years have marked a decisive shift in the fortunes of the Visakhapatnam-based shipyard. Long regarded as a steady but understated presence in India’s naval shipbuilding ecosystem, HSL is now emerging as a formidable player in the country’s defence industrial base.
This transformation was highlighted at the Governance Now 11th PSU Awards in New Delhi last week, where HSL secured Operational Leadership and Strategic Communication Outreach accolades. These awards highlight the shipyard’s growing efficiency, innovation, and industry engagement.
Commodore Girideep Singh (Retd), Director (Strategic Projects) at HSL, received the Operations Leadership Award for his role in modernising ship repair and submarine refit operations, ensuring project deliveries on time or ahead of schedule. Meanwhile, Neelima Boni, Senior Manager (Corporate Planning) and PRO at HSL, was recognised for Communication Outreach, reflecting the shipyard’s expanding brand presence and global engagement.
These achievements come at a time when HSL is positioning itself as a key enabler of India’s Make in India defence ambitions.
A Financial Inflection Point: HSL’s Road to a ₹ 20,000 Crore Order Book
The financial year 2023-24 marks a watershed moment in HSL’s history. The shipyard’s order book surged from ₹2,000 crore to over ₹20,000 crore, a tenfold increase in just three years. Simultaneously, its Profit Before Tax (PBT) breached the ₹100 crore mark for the first time, reaching ₹173 crore, while turnover climbed from ₹478 crore in FY21 to ₹1,413 crore in FY24.
This dramatic turnaround is credited to rigorous financial restructuring, technological investments, and an aggressive business strategy under Indian naval veteran Commodore Hemant Khatri (Retd.), Chairman and Managing Director of HSL. The shipyard has reoriented its approach by modernising infrastructure, optimising costs, and securing long-term high-value contracts.
Notably, HSL successfully delivered India’s first Ocean Surveillance Ship (OSS), INS Dhruv, and launched two Diving Support Vessels (DSVs) with 80% indigenous content—a first for the shipyard. These projects highlight HSL’s rising prominence in the strategic naval shipbuilding domain.
The shipyard has also expanded its vendor base from 130 MSMEs in FY20 to 564 in FY24, strengthening the broader defence ecosystem.
A Defining Test: Fleet Support Ship Project
At the heart of HSL’s resurgence is the ₹19,000 crore Fleet Support Ship (FSS) contract, a first-of-its-kind undertaking in India. Awarded in 2023, the project involves the construction of five 44,000-tonne replenishment vessels for the Indian Navy. These ships will significantly enhance India’s operational endurance in the Indo-Pacific, ensuring sustained deployments far from home shores.
The first vessel’s steel-cutting took place in April 2024, followed by keel-laying in November 2024. The second and third ships’ steel-cutting ceremonies were conducted at L&T’s Kattupalli Shipyard in December 2024 and February 2025, showcasing a collaborative approach between public and private-sector shipbuilders.
With the first delivery slated for mid-2027, followed by ships at 10-12 month intervals, the project is critical to bolstering India’s naval logistics.
Beyond its strategic significance, the project is expected to generate 16.88 million man-days of employment, bolstering India’s shipbuilding supply chain and auxiliary industries.
Expanding India’s Maritime Influence
HSL is looking beyond domestic orders and actively seeking international defence partnerships. The shipyard is in conversation with the Vietnam People’s Navy (VPN) for submarine refits, potentially opening up opportunities in the Southeast Asian maintenance market. Simultaneously, engagements with Myanmar and the Philippines signal the strategic shipyard’s ambition to position India as a defence exporter in the Indo-Pacific.
Public-Sector Resilience in a Competitive Landscape
As India’s naval shipbuilding sector welcomes increased private-sector participation, companies such as L&T and Adani Defence are making inroads, while global giants are eyeing the market for opportunities. Strategic naval shipbuilding in the country remains anchored in the public sector, where sovereign control over military assets is paramount.
HSL has carved a niche by delivering high-value naval assets, including India’s first research vessel and missile tracking ship, INS Dhruv. The shipyard’s ongoing bid for Mini Ratna status by 2026 is poised to enhance its financial and operational flexibility, allowing it to compete more effectively in the evolving landscape.
The Road Ahead: A Digital-First, Sustainable Future
HSL’s revival is underpinned by financial prudence, technological modernisation, and strategic expansion. Key investments include:
Plans for installing a 300-tonne Goliath Crane to support large warship construction are under consideration.
Commissioning of India’s largest 4.7 MW Load Bank to enhance naval testing capabilities.
New blasting and painting bays to optimise manufacturing timelines and quality standards.
Implementation of 27 Welding Procedure Specifications, setting a new benchmark in shipbuilding precision.
HSL’s Strategic Vision 2025-34 outlines a forward-looking roadmap driven by artificial intelligence (AI)-enabled shipbuilding, automation, cybersecurity, and green energy solutions. These innovations will not only consolidate its standing in defence shipbuilding but also position it competitively in commercial shipbuilding and maritime infrastructure.
Reinventing a Legacy: The Future of Hindustan Shipyard Limited
The coming years will determine whether HSL’s transformation can be sustained. The successful execution of the FSS project will define its trajectory, reinforcing India’s ambitions of self-reliance in naval shipbuilding.
As the country deepens its maritime footprint, HSL’s evolution from a legacy PSU to a future-ready shipbuilding powerhouse will serve as a case study in how state-owned enterprises can drive national defence and industrial growth in the modern era.