Gautam Adani Planning To Build Ships At Mundra Port | Report

Summary

Billionaire Gautam Adani's Adani Group is set to enter shipbuilding, aiming to make India a global manufacturing hub. Following the government's incentives to develop the 'blue economy', Adani plans to build a yard near Mundra Port, boosting India's 1% share in global shipbuilding. Aligning with India's Maritime Vision 2030, the goal is to increase annual manufacturing tonnage to 0.33 million by 2030 and 11.31 million by 2047, positioning India as a top shipbuilding nation and an alternative to currently booked Asian yards.

Takeaways

• 🌟 Billionaire Gautam Adani is planning to expand his business empire, Adani Group, into shipbuilding.
• 📅 This decision comes weeks after reports indicated that India aims to develop its blue economy and become a manufacturing hub for ships.
• ⚓ The Indian government is planning to propose further incentives to promote shipbuilding in the country.
• 🌏 Adani Group's entry into ship manufacturing aims to position India as an alternative manufacturing site to China, South Korea, and Japan, which are booked until 2028.
• 🏭 India currently has 52 major shipbuilding industries, both public and private.
• 💰 The Ministry of Ports, Shipping, and Waterways is working on different schemes to incentivize ship manufacturing, including raising financial support under the Shipbuilding Financial Assistance (SBFA) scheme.
• 🛳️ A new scheme proposing an additional 5,000 crore rupees is being developed to support the construction of inland vessels and later, seabound vessels, including cruise ships.
• 📊 India currently contributes just 1% to the global ship manufacturing market but aims to become one of the top 10 shipbuilders by 2030 and top 5 by 2047.
• 🚢 Adani Group will build a manufacturing yard near Mundra Port, which handles the highest volume of any port in India.
• 📈 India's ship manufacturing tonnage needs to increase significantly to meet its Maritime India Vision 2030 and 2047 targets, potentially making India a major market for commercial vessels.

Q & A

What is Adani Group planning to expand into?

Adani Group is planning to expand into ship manufacturing.

What is the current state of shipbuilding in countries like China, South Korea, and Japan?

Shipyards in these countries are booked until 2028, indicating a high demand for shipbuilding services.

What is the Indian government's role in promoting shipbuilding?

The Indian government is preparing to propose further incentives to develop India's blue economy and make the country a manufacturing hub for various kinds of ships.

What financial assistance scheme is currently operational for shipbuilding in India?

The Shipbuilding Financial Assistance (SBFA) scheme is currently operational to support manufacturers financially.

What is the government's plan regarding the financial support for ship manufacturing?

The government is considering raising financial support offered to manufacturers under the SBFA scheme and is also working on a new scheme to incentivize the construction of inland vessels.

What are India's current contributions to global ship manufacturing requirements?

India currently contributes just 1% to the global ship manufacturing requirements.

What are India's targets for shipbuilding as part of the Maritime India Vision 2030?

India aims to become one of the top 10 shipbuilders by 2030 and be in the top five by 2047.

What is the current ranking of India in the world commercial ship manufacturing market?

India is currently ranked 20th in the world commercial ship manufacturing market.

Where is Adani Group planning to build a manufacturing yard?

Adani Group is planning to build a manufacturing yard close to Mundra Port.

What is the annual manufacturing tonnage goal for India by 2030 and 2047 as per the Maritime India Vision?

The goal is to increase the annual manufacturing tonnage from the current 0.072 million gross tonnage to 0.33 million gross tonnage by 2030 and further to 11.31 million gross tonnage a year by 2047.

What potential does India have in the shipbuilding industry given the global demand and existing shipyard bookings?

India has the potential to become a reliable alternative manufacturer for commercial vessels, especially as demand is on the rise and major shipyards are booked until 2028.