HD Hyundai’s $4 Billion Greenfield Shipyard in Tamil Nadu Moves on Track

South Korea’s HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the parent of HD Hyundai, is fine-tuning plans to build a $4 billion greenfield shipyard on its own at Thoothukudi (Tuticorin) in Tamil Nadu, with an annual output of 3.5–4 million gross tonnage (GT) of commercial vessels. The project remains on course after the MoU signed on December 7, 2025 between HD Hyundai and the Tamil Nadu government.

The shipyard will be developed independently by HD Hyundai, which intends to bring its full vendor ecosystem to Thoothukudi, including shipbuilding cranes and a dedicated incoming steel supply, with POSCO in talks to set up an on-site steel plant. SIPCOT, Tamil Nadu’s industrial infrastructure agency, may take a 10–12% equity stake in the project equivalent to the value of land and infrastructure provided by the state, while the Maritime Development Fund (MDF) is expected to hold 20–25%, with HD Hyundai retaining majority ownership.

The project is estimated at around $4 billion, and the cluster’s infrastructure—including breakwater and dredging—is expected to cost an additional ₹4,000 crore. The total subsidy package is hefty: the central government will fund 10–12% of project cost through the Shipbuilding Development Scheme, the Tamil Nadu government will provide a 25% capex subsidy, and contribute another 10–12% for land and infrastructure, bringing total support to 45–47% of the project cost.

This marks the third major shipbuilding interest in Thoothukudi after Cochin Shipyard and Mazagon Dock Shipbuilders signed MoUs for over ₹35,000 crore, though land acquisition and construction have not yet begun on those projects. HD Hyundai’s move underscores its long-term strategy to expand in India and aligns with the country’s push to strengthen domestic shipbuilding capacity.