Recently, India’s largest shipbuilding and heavy manufacturing company, Swan Defence and Heavy Industries Limited, announced the signing of a Letter of Intent with Norwegian shipping company Rederiet Stenersen for 6+6 18,000 deadweight ton IMO Type II hybrid chemical tankers.
This Letter of Intent marks a significant milestone for Indian shipbuilding exports, with the total project value approximately $220 million (about RMB 1.566 billion). The new vessels will be built at SDHI’s shipyard in Pipavav, Gujarat, designed by Norway’s Marinform AS, and classed by DNV. The specific delivery timeline was not announced.
This series of vessels will be built to 1A Ice Class standards and equipped with an advanced hybrid propulsion system, which can both enhance ship maneuverability and achieve minimal emissions. The ship design allows for future retrofitting to use methanol or LNG as fuel and reserves space for upgrading battery capacity to 5000 kWh, thereby significantly improving environmental performance and enhancing adaptability to alternative fuels and technologies.
This is SDHI’s first commercial vessel order received in over a decade. According to Clarksons data, the shipyard’s last new vessel delivery was in 2017, when it built two LR1 tankers, the “Golden Amber” and “Golden Opal,” for Belgian owner CMB. Its last new vessel order dates back to 2009.
SDHI Director Vivek Merchant stated: “This collaboration marks a milestone for SDHI and the Indian shipbuilding industry, as we export advanced chemical tankers to Norway for the first time. We view this as a major step for India towards becoming a maritime power, advancing this goal by building large and complex vessels such as tankers, bulk carriers, and special purpose ships. Rederiet Stenersen’s trust in us demonstrates global recognition of India’s shipbuilding capabilities and SDHI’s firm commitment to delivering world-class, future-adaptable vessels.”
It is understood that Rederiet Stenersen was established in 1974 and currently owns and operates a fleet of 19 /product tankers with deadweights ranging from 16,000 to 19,000 tons, primarily operating in Northern Europe. The company is renowned for maintaining extremely high vessel quality and environmental standards, with its fleet perfectly suited to the demanding Northern European market.
SDHI is one of India’s largest shipbuilding enterprises, accounting for 30% of India’s total shipbuilding capacity. Its predecessor was the Pipavav shipyard, established in 1997. The shipyard covers over 600 acres and features one of the world’s largest dry docks (662m x 65m), capable of supporting the construction of vessels up to 400,000 dwt. The facility also houses one of India’s largest manufacturing bases, equipped with 2.41 million square feet of enclosed workshops, ensuring continuous manufacturing operations year-round.
In 2015, the Indian conglomerate Reliance Group acquired a 17% stake in the Pipavav shipyard for $130 million, later increasing its shareholding to 36% through a subsequent open offer. In 2016, the shipyard was renamed Reliance Defence & Engineering, and again in 2017 to Reliance Naval & Engineering (RNaval). At its peak, RNaval delivered five Panamax bulk carriers.
However, in 2019, after Reliance Group failed to repay loans, banks initiated insolvency proceedings to recover approximately $1.2 billion in debt. In January 2020, RNaval entered corporate insolvency resolution. In 2022, Swan Energy and Hazel Infra intervened, and ultimately Hazel Mercantile acquired RNaval through a resolution plan in December 2023, formally renaming it Swan Defence & Heavy Industries in 2023.
