South Korea’s HD Hyundai, one of the world’s largest ship manufacturers, has announced plans to build a major shipyard in Thoothukudi, Tamil Nadu, under a strategic manufacturing expansion initiative. According to a government source, the project could involve an investment of around $2 billion, marking one of the largest shipbuilding commitments in India by a foreign company.
Make in Tamil Nadu Vision for Maritime Manufacturing
Addressing the Tamil Nadu Investment Conclave 2025, Hannae Choi, Vice-President at HD Korea Shipbuilding & Offshore Engineering (HD KSOE), said the initiative was initially conceptualised as the SMITH project Shipbuilding Make in India Together with Hyundai. However, after site evaluation and policy alignment, the company has now rebranded it as Make in Tamil Nadu with Hyundai, reflecting strong confidence in the state’s industrial ecosystem.
Complementing Cochin Shipyard and Mazagon Dock Investments
The announcement follows two separate shipbuilding investments worth ₹30,000 crore, committed by Cochin Shipyard and Mazagon Dock Shipbuilder for projects in Thoothukudi. Together, these developments are expected to create over 55,000 jobs, accelerate port-led economic activity, and boost the region’s maritime infrastructure.
Why Thoothukudi Was Selected
Tamil Nadu officials confirmed that Thoothukudi offers ideal climatic and geographic conditions, deepwater access, strong industry presence, and significant expansion potential. In addition to land and infrastructure planning, the state has offered policy clarity, site coordination, and talent availability, which helped secure Hyundai’s final selection.
Shipbuilding as an Economic Catalyst
Shipbuilding has a sixfold employment multiplier, supporting direct, indirect, and induced jobs across 60–65% value addition sectors. Tamil Nadu is positioning maritime manufacturing as a priority area to build coastal economies, expand global investments, and develop shipbuilding talent. The state will soon release a maritime manufacturing policy to support long-term operations and foreign capital inflow.
Surge in Southern Tamil Nadu Investments
Southern districts including Thoothukudi, Tirunelveli, Madurai, Kanyakumari and Dindigul have seen ₹2.2 trillion in investments since 2021, creating more than one million jobs. According to Finextra Research, India’s shipbuilding industry is projected to grow from $90 million to $8.12 billion by 2033, signalling massive long-term potential.
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