Visakhapatnam-based HSL to set up first satellite shipyard in North Coastal Andhra

Visakhapatnam-based Hindustan Shipyard Limited (HSL) is set to expand its operations by establishing its first satellite shipyard in north coastal Andhra Pradesh, as announced during a press conference conducted by them on 29 July 2025. This move marks a significant step in the company’s long-term growth strategy to leverage the state’s extensive coastline for maritime development.

HSL Chairman and Managing Director Commodore Hemant Khatri announced that the company has approached the Andhra Pradesh government for the allotment of at least 110 acres of land for the proposed shipyard. Preliminary site inspections have already been conducted at Moolapeta in Srikakulam district and along the Kakinada coastline. Discussions are currently ongoing with the Andhra Pradesh Maritime Board regarding the land acquisition.

The new satellite shipyard facility in North Andhra will complement HSL’s operations in Visakhapatnam, where the company has recently repurposed 25 acres of its residential colony into a manufacturing zone with the board’s approval. However, with increasing demand, the company now requires additional space to support its MSME partners and to expand production capabilities.

As part of its expansion blueprint, HSL aims to work in synergy with upcoming ports across Andhra Pradesh. The state government is promoting shipbuilding, ship repair, coastal cruise tourism, and maritime logistics – sectors in which HSL seeks to be a key player. The planned satellite shipyard will feature a floating dry dock, positioned close to port infrastructure to facilitate ship construction and repairs efficiently. The design and supply chain management will continue to be anchored in Visakhapatnam.

HSL is also widening its business focus beyond traditional shipbuilding. The company is actively pursuing opportunities in the defence, commercial shipping, green vessel technologies, and oil & gas sectors.

In the defence sector, HSL is working on high-profile projects including the Landing Platform Dock (LPD), Mine Countermeasure Vessels (MCMVs), and the next generation Water Jet Fast Attack Craft (WJFAC). In the oil and gas domain, HSL is eyeing contracts for two well-head platforms for Oil India Limited and two jack-up rigs for the Oil and Natural Gas Corporation (ONGC).

Aligning with India’s sustainability goals, HSL is also stepping into green shipping technologies. The company is targeting the development of electric and hydrogen-powered tugs for major Indian ports, including the Visakhapatnam Port Authority.

In addition, HSL has recently signed a Memorandum of Understanding (MoU) with Pentagon Rugged Systems to develop anti-drone technology and long-range non-line-of-sight (NLOS) communications for naval vessels. Another MoU has been inked with Bharat Earth Movers Limited (BEML) to jointly develop indigenous marine systems under the Atmanirbhar Bharat initiative.

Commodore Khatri highlighted HSL’s robust performance in recent years, noting that the shipyard surpassed a turnover of Rs 1,800 crore in the 2024–25 financial year. The company has now set its sights on reaching the Rs 3,000 crore milestone within the next two years.

Speaking at the press conference on Tuesday, Commodore Khatri said, “We are presenting before you a new HSL, one that is rising and shining, where there is hope, belief, and trust among our customers and the central government.”

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