Recently, Dutch shipbuilder Royal IHC announced the signing of a Memorandum of Understanding (MoU) with India’s largest shipbuilding and heavy manufacturing company, Swan Defence and Heavy Industries Limited (SDHI). The two parties will collaborate to build Offshore Construction Vessels (OCVs).
The collaboration will focus on SDHI’s advanced shipyard located at Pipavav Port in Gujarat, India, to jointly undertake the design, construction, and conversion of OCVs, pipelay vessels, and multi-purpose offshore support vessels (OSVs). This cooperative initiative aligns with the Indian government’s “Make in India” and “Atmanirbhar Bharat” plans, aiming to promote local manufacturing and enhance India’s cost competitiveness in the global shipbuilding market.
According to the agreement, Royal IHC will provide its world-class expertise in ship design, engineering, mission equipment integration, and project management; while SDHI will leverage its extensive infrastructure, skilled workforce, and strategic geographical location. SDHI’s shipyard in Pipavav boasts India’s largest dry dock, measuring 662 meters in length and 65 meters in width, with an annual manufacturing capacity of 144,000 tons, providing unique conditions for undertaking large-scale maritime projects.
Vivek Merchant, Director of SDHI, stated: “At a time when industry demand for offshore vessels capable of serving both the oil and gas and renewable energy markets is growing, we are very pleased to establish a partnership with Royal IHC. This collaboration enables us to seize these emerging opportunities with world-class capabilities and competitive solutions.”
Derk te Bokkel, CEO of Royal IHC, pointed out: “This agreement is an important step for us to strengthen our presence in Asia by partnering with India’s largest shipyard. Leveraging SDHI’s infrastructure and capabilities, we can provide reliable, advanced offshore solutions to meet the evolving demands of the global energy market.”
It is understood that 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 spans over 600 acres and features one of the world’s largest dry docks (662m x 65m), capable of supporting the construction of ships 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 launching a tender offer to increase its stake to 36%. In 2016, the shipyard was renamed Reliance Defence & Engineering, and in 2017, it was renamed again to Reliance Naval & Engineering (RNaval). At its peak, RNaval delivered five Panamax bulk carriers.
However, in 2019, as the Reliance Group failed to repay loans, banks initiated insolvency proceedings to recover approximately $1.2 billion in debt. In January 2020, RNaval entered the corporate insolvency resolution process. 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.
