South Korea’s HD Hyundai has signed an agreement with the Tamil Nadu government to set up a mega shipyard in Thoothukudi. The move positions India for a major leap in global shipbuilding and strengthens the state’s rise as a maritime hub.
HD Hyundai Chooses Thoothukudi for First Mega Shipyard in India
Tamil Nadu’s coast beat several shortlisted states due to its strong industrial base, supportive policy environment and the port city’s favourable climate. HD Hyundai found Thoothukudi’s temperature and rainfall patterns to be similar to those of Ulsan in South Korea, where the company already operates some of its largest shipyards.
Why Thoothukudi Emerged as the Top Choice?
Thoothukudi offered clear advantages, a deep-water port, reliable logistics, better land availability and an established coastal workforce. The Tamil Nadu government pitched the region as a ready-to-scale maritime belt, backed by new port infrastructure and industry-linked training pipelines.
Industries Minister TRB Rajaa said the company chose Tamil Nadu because the state provided fast coordination, policy clarity and a strong coastal ecosystem that matches global shipbuilding needs. The state government has also been pushing southern districts as new industrial anchors to balance economic growth.
Major Investment with a Global Vision
Government sources indicate an investment size close to USD 2 billion, though officials have not confirmed it publicly. The agreement was signed in the presence of CM MK Stalin, Industries Minister TRB Rajaa and senior HD Hyundai leadership.
HD Hyundai said the Indian shipyard would be part of its global expansion. The company already operates shipyards in Vietnam, the Philippines and Saudi Arabia.
“This year, HD Hyundai reached a historic milestone. We delivered a cumulative total of 5,000 vessels since our founding— a record rarely matched in global shipbuilding. We also operate shipyards in Vietnam, the Philippines, and Saudi Arabia. And now, we are here in India,” said Hannae Choi, HS KSOE Senior Vice President.
During her visit to Thoothukudi, she added:
“Yesterday, my team and I visited Thoothukudi. With its strategic location, favourable climate, and skilled people, I could clearly imagine a mega shipyard being built here. 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.”
Massive Job Potential and Coastal Growth
Shipbuilding is known for its high employment multiplier in India — one job can create six more across supply chains, machining, logistics, fabrication, and local services. Tamil Nadu expects thousands of direct and indirect jobs once the project takes off.
More than 60–65% of value addition in shipbuilding comes from ancillary industries. This is expected to attract component makers, metal fabricators, marine-tech firms and global suppliers to the state.
The project also aligns with India’s push under Maritime Vision 2047 to reduce reliance on foreign shipyards and build domestic capacity for commercial and offshore vessels.
What Happens Next?
The agreement begins feasibility studies and land assessments. A detailed project roadmap is expected next year. Tamil Nadu is preparing a new maritime manufacturing policy to support shipbuilders, suppliers and training institutes.
If the project progresses on schedule, Thoothukudi could emerge as one of India’s biggest shipbuilding clusters, transforming the district into a major industrial zone and strengthening India’s presence in global shipbuilding markets.
