The indian shipbuilding industry to grow 30% annually
The Indian shipbuilding industry is on a high growth trajectory and is expected to grow at a compound annual growth rate (CAGR) of 30%. In a recent report, I maritime, a consultancy firm, has said that India's share in global order book is expected to be around 15 % by 2020 from current 0.4%, aided by cost competitiveness and skilled manpower. The industry, estimated to be $22 billion by 2020, currently contributes less than 0.1 % towards the GDP, a figure which will rise upto 1.1% by 2020.
According to industry sources, "In earlier days, the industry was predominated by government shipyards. However, given the growth opportunities today, the private sector has started to expand their operations." This is also evident from the share of private players in the overall indian shipbuilding order book, which currently stands at 73%.
The order books of the shipyards would reveal that private shipyards are mostly banking on export orders out of their total orders share of $2,686 million, export orders account for almost $2,284 million. In the case of PSU shipyards, it is the other way around, with domestic orders accounting for $517 million out of their total share of $1,011 million.
"The shipbuilding industry is a totally labour intensive industry and there is dearth of skilled labour in India," said a Mumbai based shipping analyst. The global order book has registered a 29% CAGR over the period 2003-06. Going forward, a similar trend is expected on the back of a growth in demand for vessels, which is seen as a result of replacement demand and capex boom in the offshore segment.
Earlier, Indian shipyards were focused on the construction of only small vessels. After the proposed expansions, shipyards will be able to build large vessels.
According to industry sources, "In earlier days, the industry was predominated by government shipyards. However, given the growth opportunities today, the private sector has started to expand their operations." This is also evident from the share of private players in the overall indian shipbuilding order book, which currently stands at 73%.
The order books of the shipyards would reveal that private shipyards are mostly banking on export orders out of their total orders share of $2,686 million, export orders account for almost $2,284 million. In the case of PSU shipyards, it is the other way around, with domestic orders accounting for $517 million out of their total share of $1,011 million.
"The shipbuilding industry is a totally labour intensive industry and there is dearth of skilled labour in India," said a Mumbai based shipping analyst. The global order book has registered a 29% CAGR over the period 2003-06. Going forward, a similar trend is expected on the back of a growth in demand for vessels, which is seen as a result of replacement demand and capex boom in the offshore segment.
Earlier, Indian shipyards were focused on the construction of only small vessels. After the proposed expansions, shipyards will be able to build large vessels.
