South Korean shipbuilding major HD Hyundai on Sunday announced plans to set up its first shipyard in India, choosing the port city of Thoothukudi in Tamil Nadu for the project. A memorandum of understanding (MoU) was signed in the presence of Tamil Nadu chief minister MK Stalin, industries minister TRB Rajaa and senior leadership from HD Korea Shipbuilding & Offshore Engineering (KSOE) at the Tamil Nadu Investment Conclave 2025 in Madurai.
Mega-Project Scale
While neither the government nor the company disclosed the investment outlay, informed sources told FE that the project could require at least $2 billion (around ₹18,000 crore).
“For a shipbuilding project of this size, it takes at least $2 billion in initial investments,” one source said. They added that the company is in the process of raising funds for the project, and the final investment commitment will become clearer in the coming days.
HD Hyundai, one of the world’s largest shipbuilders, crossed a major milestone earlier this year by delivering a cumulative total of 5,000 vessels. The company already operates shipyards in Vietnam, the Philippines and Saudi Arabia. Internally, the India initiative was initially referred to as the “SMITH Project” — Shipbuilding Make in India Together with Hyundai — signalling long-term cooperation with India.
“This vision to build a mega-scale shipyard will be made possible together with the Government of India, the Government of Tamil Nadu, and HD Hyundai,” said Hannae Choi, Vice President and Head of the Corporate Planning Division at HD KSOE, while speaking at the conclave.
Why Thoothukudi?
The HD Hyundai project in Thoothukudi comes just months after Indian majors Cochin Shipyard and Mazagon Dock Shipbuilders announced their plans to set up two greenfield commercial shipyards in Thoothukudi, together committing around ₹30,000 crore and an employment potential of 55,000 jobs.
“Tamil Nadu was chosen by HD Hyundai because it offered a clear policy roadmap, fast coordination and a strong coastal ecosystem for a project of this scale,” Tamil Nadu Industries Minister TRB Rajaa said.
He noted that the employment multiplier in shipbuilding is significant, often cited at around 6.4x in India. “Shipbuilding is labor-intensive and supports numerous ancillary sectors (60-65% of value addition), making it a key driver for industrial growth and technological innovation in regions,” he said.
Tamil Nadu has been stepping up its maritime ambitions, identifying shipyard development as a priority to boost coastal economies, attract large-scale investments and develop skilled talent.
Meanwhile, the ‘TN Rising’ Investor Conclave saw the signing of 91 MoUs with investment commitments worth ₹36,660.35 crore.