The global shipbuilding industry is a core engine of world trade, valued at over $152 billion in 2025 and projected to reach $193 billion by 2030. Currently, Asian giants like China, South Korea, and Japan dominate the shipbuilding industry, controlling over 85% of global ship production.
However, a dramatic shift is underway in India.
The Commercial Framework of India’s Marine Trade
Despite handling about 95% of its trade by sea, India currently builds less than 1% of the world’s ships. To change this, the country has launched an aggressive mission to become a top-five global shipbuilding power by 2047. The incoming demand is very strong too.
Swan Defence estimates that defence, particularly, the Indian Navy plans to expand its frontline combat fleet by 80% by 2030. Furthermore, state-owned companies are expected to order $20 billion (around ₹2 lakh crore) in commercial ships over the next decade. It also estimates the ship repair market at $1.7 billion by 2033.
Against this backdrop, the focus of this article is two companies from the shipbuilding sector, beyond GRSE and Mazagon Dock. Of them, one already operates within the tug boat and marine services ecosystem while the other has re-entered the space under a new ownership.
#1 Knowledge Marine & Engineering Works
Knowledge Marine & Engineering Works (KMEW) recently entered the commercial shipbuilding segment. The management views this expansion as a critical step in establishing a sustainable and reliable marine engineering presence.
Expanding Production: The Kamal Marine Acquisition
However, KMEW will only focus on smaller vessels and tugs. There is no intent to build vessels over 100 meters in length or with a draft exceeding 5 meters. To anchor its new shipbuilding operations, KMEW acquired Kamal Marine on 6 August 2025, which was subsequently renamed Knowledge Shipyard Private Limited.
This subsidiary serves as the primary entity for the company’s shipbuilding arm. For FY26, this specific subsidiary alone recorded total revenues of ₹28.5 crore and a net profit of ₹2.3 crore. KMEW shipbuilding operations will serve two distinct purposes.
Multi-Utility Strategy: Merging External Supply with Fleet Chartering
First, the construction and supply of vessels to external entities, including the Government of India, and second, the internal deployment for the company to own, operate, and charter out. KMEW’s entry into the sector was immediately validated by securing large-scale, high-value contracts.
Securing the Order Book: High-Value Port Contracts
KMEW secured an order valued at over ₹230 crore to supply workboats, accommodation boats, survey boats, and cutter suction dredgers to be executed over a 2-year period. The company won another 15-year contract from Visakhapatnam Port and VOC Port for the construction and chartering of 60-tonne-bollard-pull green tugs.
The total value of these contracts is approximately ₹700 crore.
Decarbonizing the Waves: KMEW’s Targeted Entry into Green Port Logistics
A major highlight of KMEW’s shipbuilding strategy is its focus on green vessels. To build these technologically advanced green tugs, KMEW has partnered with a specialized designer who is assisting with the modeling and technical specifications.
The company is currently negotiating with various suppliers for the necessary components and will execute the final assembly entirely in-house at its shipyard. KMEW is aggressively targeting the growing demand for green tugs in India. Management estimates a total domestic pipeline requirement of 120-130 vessels.
To capitalize on this demand, KMEW is participating in ongoing green tug tenders floated by other major ports, including Paradip, Cochin, Bombay, and Calcutta. If won, Knowledge Shipyard will build the vessels, and Knowledge Marine will operate them.
Capital Allocation and Shipyard Expansion Infrastructure
To support this aggressive growth, KMEW is executing a focused capital expenditure plan. The company is investing close to ₹100 crore into the creation and expansion of its shipyard facility. Management expects the shipbuilding segment to scale significantly, projecting revenue between ₹500- 700 crore within the next 3 years, up from ₹53 crore in FY26.
Financial Vitals: Surging Net Income Versus Working Capital Constraints
From a financial perspective, revenue in FY26 grew 27.7% year-over-year to ₹256 crore in FY26. Operating profit rose 24.4% to ₹97 crore, while margins stood at 38%, a decline of 100 bps. Net profit for the year increased 59.5% to ₹79.1 crore. A 337% jump in current borrowings to ₹113.8 crore in FY26, up from around ₹26 crore in FY25, also warrants close monitoring.
Knowledge Marine Share Price
#2 Swan Defence and Heavy Industries
Swan Defence and Heavy Industries (SDHI), formerly known as Reliance Naval and Engineering, is a prominent player in the Indian shipbuilding, ship repair, and heavy engineering sectors. Acquired by the Swan Group, the company has revitalized its operations, positioning itself as a critical asset for India’s defense and commercial maritime ambitions.
Infrastructure Footprint: Expanding India’s Largest Dry Dock Facility
SDHI’s structural advantage in the shipbuilding industry is driven by its industry-leading infrastructure located in Pipavav, Gujarat. The facility is uniquely equipped to handle complex naval and commercial platforms.
The shipyard boasts the largest dry dock in India and the 7th-largest globally, measuring 662 meters in length and 65 meters in width. This scale enables the simultaneous construction of multiple large vessels.
In addition, SDHI has an annual steel fabrication capacity of 144,000 to 164,000 metric tonnes (MT). The fabrication sheds span over 2.1 million square feet and can produce modular blocks weighing up to 300 tonnes. The shipyard is also the only modular shipbuilding facility in India capable of building fully fabricated and outfitted blocks.
Strategic Alliances: Partnering for Navy and Commercial Execution
Following its acquisition, SDHI successfully recommenced operations and completed multiple refit projects for the Indian Coast Guard ahead of schedule. To accelerate its technology adoption and expand its market reach, SDHI has forged several alliances with leading domestic and international entities.
This includes a partnership agreement with Mazagon Dock Shipbuilders for the design and construction of ‘Landing Platform Docks’ for the Indian Navy. This collaboration aims to achieve cost efficiency and shorten the construction period.
Another partnership with GRSE involves the joint development of commercial vessels and offshore structures, leveraging shared infrastructure to expedite project completion. Other partners include Samsung Heavy Industries, Fincantieri, and Royal IHC & Conceptia.
Management believes government support, including the Shipbuilding Financial Assistance Policy, along with SDHI’s large capacity and strategic partnerships, strengthens its position in the shipbuilding industry. The company sees itself as well-placed to build vessels of up to 400,000 deadweight tons while catering to both domestic and global demand.
Base-Effect Revenue Growth vs. ₹262 Crore Exceptional Loss
FY26 marked a significant scaling of operations for SDHI. On a consolidated basis, revenue from operations for FY26 stood at ₹282.1 crore, up from the ₹7.0 crore in FY25. However, the company reported a net loss of ₹225.9 crore, up from ₹181.1 crore in FY25. This was mainly due to a one-time book value loss of ₹262 crore from the sale of 5 Offshore Vehicles.
Capital Allocation: Board Approves ₹4,000-Crore Institutional Fundraising
To fuel its growth, the Board of Directors approved a major fundraising plan on 27 May, 2026. The company plans to raise up to ₹4,000 crore through various modes, including qualified institutions placement, debt, or other methods. This is subject to shareholder approval.
Order Book Expansion: Securing High-Capacity Green Ammonia Carriers
Furthermore, the company has secured several orders in FY27. It has received a Category 4 order (valued between ₹1,500-3,000 crore) from an international entity, Energy ONE. This order is for the construction of four 92,500 DWT dual-fuel ammonia bulk carriers. The first delivery is expected in October 2029.
Notably, these will be the first ammonia dual-fuel vessels to be built in India, and also rank among the largest commercial vessels ever constructed at an Indian shipyard. Prior to this, it received a $227 million (approximately ₹2,080 crore) order from European shipowner Rederiet Stenersen. The first vessel (out of six) is scheduled for delivery within 33 months.
Furthermore, SDHI aims to secure several orders from the Indian Navy and the Coast Guard. These include the ₹36,000 crore P-75 project, Next-Generation Corvettes (₹25,000 crore), Next-Generation Survey Vessels (₹3,500 crore), Special Purpose Vessels (₹3,000 crore), and Multi-Purpose Vessels (₹2,200 crore).
Swan Defence Share Price
Evaluating Capital Efficiency: Premium Valuations vs Industry Medians
KMEW stands out with strong Return on Capital Employed (ROCE) and Return on Equity (ROE). In terms of valuations, following a recent sharp re-rating, the company now trades at a premium EV/EBITDA multiple of 43x relative to the industry median of 29.8x and even the 5-year median multiple of 22.2x. SDHI is still loss-making, so we have not taken the company data for now.
| Particulars | EV/EBITDA Multiple | Return Ratios | |||
| Company | 5Y Median | Industry Median | ROCE (%) | ROE (%) | |
| KMEW | 43.0 | 22.2 | 29.8 | 16.3 | 20.0 |
| Source: Screener.in (As of 29th May 2026) | |||||
Why Future Projections Require Operational Patience
Despite contributing less than 1% to global shipbuilding today, India aims to become a top-five shipbuilding nation by 2047. This is likely to be supported by $20 billion in expected commercial shipbuilding demand and an 80% expansion of the Navy fleet by 2030.
Against this backdrop, one player is scaling through a ₹700 crore pipeline, while another is targeting multi-thousand-crore defence and export orders despite near-term losses. In the meantime, it would be beneficial to keep these on your watchlist to see whether or not they emerge victorious.
This is important because shipbuilding is a long-gestation business with high competition from state-owned shipyards.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternative, widely accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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