HINDUSTAN SHIPYARD LTD

CONTENT FOR DEFEXPO WEBSITE

BACKGROUND

1. Hindustan Shipyard Ltd is strategically located on the East Coast of the Indian

peninsula, at Visakhapatnam, Andhra Pradesh. It is the nation’s premier shipbuilding

organization catering to the needs of shipbuilding, ship repairs, submarine construction

and refits as well as design and construction of sophisticated state-of-the-art offshore and

onshore structures. Direct sea access, excellent infrastructure, skilled work force, rich

expertise garnered over the years in building 189 vessels (including 11 wellhead

platforms) and repairing 1970 vessels of various types enable HSL to offer competent

services for the defence and maritime sectors.

2. The shipyard was acquired by GoI and incorporated as Hindustan Shipyard Ltd on

21 Jan 1952. It became a fully owned GoI undertaking in 1961 under the administrative

control of Ministry of Shipping. Considering the strategic requirements, the yard was

brought under the administrative control of the Ministry of Defence on 22 Feb 2010. The

Registered Office of the company is located in Visakhapatnam and has a regional office

at New Delhi.

PRODUCT PROFILE

3. The product profile includes cargo liners, bulk carriers, passenger vessels, offshore

platform vessels, inshore platform vessels, survey vessel, mooring Vessel, HSD oiler,

landing ship tanks, training Ship, tugs, supply vessels, drill ship, dredgers, oil recovery

and pollution control vessel, research vessel, floating cranes, barges etc. for varied

number of customers like Indian Navy, Indian Coast Guard, ONGC, GML, Port trusts,

DCI, SCI, Andaman & Nicobar administration etc.

Inshore Patrol Vessel - ICGS Rani Rashmoni

Passenger Vessel – MV Kavaratti 53000 DWT Bulk Carrier – Good Trade

Offshore Patrol Vessel – INS Sujata

50 T Tug –

Sahayak

25 T Tug – Krittika

Drill Ship – Sagar Bhushan OPSSV – Samudrika 7

CORE AREAS

4. The shipyard has three independent business units viz. Shipbuilding, Ship Repairs

and Submarine divisions with exclusive facilities and infrastructure.

5. Shipbuilding. The Shipbuilding facilities include a fully-covered Building Dock (240 x

53 M) with intermediate gate facility capable of building vessels up to 80,000 DWT and

three Slip Ways capable of launching up to 33000 DWT. The Yard has a long outfitting

quay (460 m) of 10 M clear depth equipped with self-contained services and facilities.

HSL has built 189 vessels till date at these facilities.

6. Ship Repairs. Ship Repairs Complex is

equipped with necessary facilities and infrastructure

for undertaking repairs of all types of ships, marine

structure & offshore platforms. The Dry dock,

constructed in the year 1971, is an important adjunct

to the Ship Repairs Complex for undertaking repairs

of all types of ships and oil rigs. With a size of 244 x

38 M, it is capable of handling vessels up to 70,000

DWT. The Dry Dock, the biggest and modern dock in

the East Coast is capable of docking multiple ships.

Ship Repairs Complex also has 544 meters of berths,

wet basin with a depth of 10 M and necessary

carnage. Ship Repairs Complex, has accomplished

intricate repair jobs on a variety of Naval Ships

including Submarines, Merchant Ships and Oil Rigs.

7. Submarine Refit. The shipyard has exclusive Submarine Refit Facilities. HSL

happens to be the only Shipyard in India to have carried out the refits of three classes of

submarines (refit of two Egyptian submarines in 1971, refit of Foxtrot-class (INS Vagli)

and EKM class (INS Sindhukirti & INS Sindhuvir) submarine of Indian Navy. The Medium

Repair-cum-Modernisation of Russian built INS Sindhukirti was successfully completed

and handed over to the Navy on 26 Jun 2015. Considering the expertise gained in MR of

INS Sindhukirti, HSL has been awarded for Normal Refit of INS Sindhuvir. The refit

commenced in July 2017 is 27 months and is progressing satisfactorily.

Major repair of Oil Rig – Sagar Ratna

Normal Refit of INS Sindhuvir

DESIGN RESOURCES

8. HSL has a well-equipped Design & Drawing Office, which in the past has developed

in-house design for a number of vessels. HSL’s design department has been recognized

as in-house R&D unit by Department of Scientific & Industrial Research (DSIR), Ministry

of Science & Technology. HSL's design capability embraces wide spectrum of general

and special purpose vessels. The design office has been upgraded in the recent past

under modernisation program. With this, the design office has mastered the art of

producing composite drawings which would enable adoption of integrated modular

construction methodology with a high level of pre-outfitting of blocks-modules.

QUALITY AND CERTIFICATION

9. HSL is the first yard in the country to

obtain ISO 9001-2000 accreditation. The

yard is ISO 9001 - 2015 certified from

IRQS for undertaking “Design and

Construction of all categories of Defence

Ships/Crafts/Boats, Commercial Vessels

upto 80,000 DWT and Repairs of all

categories of Ships/ Crafts/ Boats/ Rigs

and allied services”.

TECHNOLOGY UP-GRADATION

10. HSL is also venturing into the latest technological up gradations available in the

market, aiming for a seamless process flow of information and to bring in best practices

adopted in other Indian and foreign shipyards. HSL has partnered with M/s Tech

Mahindra Ltd as System Integrator (SI) to implement SAP S4/HANA ERP system. The

unique feature of this ERP system would be integration of Design software, Aveva Marine

including its 3D features with an embedded PLM in SAP. This would be first time in any

Indian Shipyard that Design software would be integrated with any ERP software through

PLM. ‘GO LIVE’ of the SAP S4/HANA ERP system commenced on 10 May 2019.

SOLAR POWER SYSTEM

11. HSL has undertaken clean and green

energy initiatives by inaugurating a 02 MW

rooftop solar power system on September 21,

2018. This is the largest rooftop solar plant in

Andhra Pradesh installed at a single location

and will help HSL to save about Rs 48 lakh per

annum in energy costs, while reducing its

environmental footprint. The rooftop solar plant

will meet around 35% of the HSL’s total power

demand, generating 28 lakh of units of clean

energy per annum.

12. The entire project including design, supply, erection, testing, commissioning

including warranty, operation & maintenance is being undertaken by M/s Clean Max

without any operation and capital expenditure from the yard side and was executed under

the Solar Energy Corporation of India (SECI) Rooftop Solar Scheme.

PERFORMANCE

13. HSL has undergone a major turnaround with effect from FY 2015-16 by achieving

operating and net profit for the last four consecutive years without any financial assistance

from the Government. It is pertinent to mention that the yard has been incurring

continuous operating losses since last 4-5 decades except during the years the Govt.

provided aid / subsidy. The shipyard has clocked the highest-ever turnover of Rs 645 Cr

with an operating profit of Rs 69.80 Cr during 2017-18. Further, during 2018-19, HSL has

achieved a net profit of Rs 36.23 Cr (Provisional) and an operating profit of Rs 68 .08 Cr

(Provisional). The operational indices of the company have also improved significantly.

These indices are now comparable or are better than most shipyards in the country.

Performance Indices 2014-15 2015-16 2016-17 2017-18 2018-19

(Prov.)

VoP (Rs Cr) 294 593.29 629.04 644.78 595

Total Income (Rs Cr) 323 604 650 652 606

VoP per Employee (Rs Lakhs) 13 32.90 33.00 40.08 41

Employee Cost (% of VoP) 55 24.00 22.00 20.08 19

Net Profit / Loss (Rs Cr) (202) 19.00 53.77 20.99 36

Operating Profit / Loss (Rs Cr) (231) 12.74 37.49 69.80 68

IMPROVEMENT IN ORDER BOOK

14. HSL has turned around in securing orders in the competitive bidding process. HSL

has emerged as the lowest bidder (L1) in the competitive tendering process for 4 tenders

during the last three years. All these contracts have been secured amidst stiff competition

from sister public sector shipyards and Private shipyards.

(a) Construction of 2 Nos Diving Support Vessels worth Rs 2390 Cr for Indian Navy (this order is so far the highest since inception).

(b) Construction of 04 Nos 50 Ton Bollard Pull Tugs worth Rs 260 Cr for Indian Navy.

(c) Construction of 4 Nos. Pontoons (Rs 10 Cr) and 3 Nos. Flap Gates (Rs 20 Cr) for Naval Dockyard (Visakhapatnam).

FUTURE ORDERS

15. MRLC of INS Sindhughosh. In accordance with the directives of DAC, MRLC of

the 4th EKM submarine was scheduled to be undertaken in India with the OEM assistance.

Since HSL has successfully completed medium refit cum modernization of INS

Sindhukirthi in 2015, it will only be “in fitness of things”. HSL has requisite capability,

infrastructure & spare capacity for executing EKM class submarine refits. As part of

capability enhancement, HSL has signed a comprehensive MoU with USBC of Russia to

provide complete technical-logistics support for such works / refits / upgrades. HSL is

putting its best efforts to bid for MRLC of 4th EKM submarine ‘INS Sindhughosh’. HSL

has requested IHQ, MoD (N) to consider the shipyard for issue of RFP for MR-

MLU/MR/NR/SR of all Russian origin ships / submarines.

16. Fleet Support Ships (FSS). HSL has been nominated by MoD for construction of

05 Nos. Fleet Support Ships (FSS), with AoN cost of about Rs 10,000 Cr. M/s Anadolu

Shipyard (ADIK) Istanbul, Turkey has been finalised as the design collaborator for the

FSS project against the global tender floated by the shipyard. Letter of acceptance has

been issued to the ADIK. M/s ADIK, Turkey Team visited HSL from 09-12 July 19 to have

deliberations on all aspects of Collaborator Agreement including yard infrastructure to

evolve a suitable build plan and build strategy, in consultation with HSL. Conclusion of

contract between HSL and Anadolu Shipyard, Turkey is expected by Sep 19. HSL is

planning to submit commercial bid to MoD by Jan 20. Upon finalization of the terms &

conditions, contract would be signed with Indian Navy for the FSS project.

17. Special Operations Vehicles (SOVs). HSL has been nominated by MoD for

construction of 02 Nos. Special Operation Vehicles (SOVs) worth about Rs 5000 Cr. The

shipyard is in the process of finalization of RFP and floating of global tender for finalisation

of a design Collaborator for the project.

18. P 75 (I) project. The shipyard has developed the required ecosystem and expertise

for submarine refits which can be used for submarine construction. HSL has already

signed a MoU with OSKA (Russia), BHEL and MIDHANI with regard to cooperation in

construction of submarines. HSL has requested MoD for inclusion of HSL with Joint Stock

Company, OSK (United Shipbuilding Corporation of Russia) in SP model for P 75 (I)

considering its past submarine experience, covered dry dock, outfitting jetties with good

depth alongside, huge infrastructure with adequacy of land for augmentation, large

vendor base with suitable eco-system and strategic vision of MoD in acquiring in HSL. A

meeting on the subject with all prospective SP (MDL, HSL, L&T, & RDEL) was held on

05 April 2019 and SoC for inclusions of HSL in SP for P75 (I) has also been forwarded to

IHQ/DSMAQ vide SM/SSS/BDVP/1200 dated 04 April 2019. Considering the past

submarine experience, HSL may be considered for issue of RFP in the Strategic Partner

model for construction of P 75(I) project submarines. This will have the advantage of

developing an alternative submarine construction yard in the country and also reduce the

overall build period of P 75(I).

AWARDS & RECOGNITIONS

19. HSL has received the following awards and certificate of appreciation during the last

three years.

(a) Hon’ble Raksha Mantri’s Awards for

Excellence. On 30 May 2017, HSL has

received Hon’ble Raksha Mantri’s awards for

excellence for the year 2015-16 in the

category of ‘Projects on own Initiative –

Innovation’ for the following innovative

works.

(i) Shafting work

(ii) New welding techniques

(iii) Rudder Carrier Bearings Modification

(b) SODET Excellence Awards. On 10 Feb

2018, HSL has also won the Society for

Defence Technologist (SODET) excellence

awards for the year 2015-16 in the category

of:

(i) Technology Development – Engine

Exhaust (Silver medal)

(ii) Technology Innovation – Installation

of major sensor and a complex dome

on the ship (Bronze medal)

(c) BML Munjal Awards – Certificate of appreciation. HSL’s efforts in the field of

Learning & Development and its role in driving Business Excellence have been

appreciated by the Evaluation Panel of the BML Munjal Awards 2018. Towards this,

the yard has received a certificate of appreciation on 19 Apr 2018.

(d) Vruksha Mitra Award (Environment). HSL has been awarded “Vruksha Mitra

Award (Environment)” by VMKSR Memorial Charitable Trust for the year 2017-18

for Visakhapatnam region in the category of “Organisation Scholar” on 31 Aug 18.

(e) Governance Now Award for Resilient

Growth. HSL has been bestowed with

‘Governance Now’ award in the category of

‘Resilient Growth’ on 17 Jan 2019 for best

financial performance. The Governance

Now Awards recognizes the efforts of Public

Sector Undertakings (PSUs) that have been

a key to the country’s growth.

(f) SKOCH AWARDS: HSL has been

bestowed with prestigious ‘SKOCH

AWARDS 2019’ in the category of

“Corporate Excellence” during the 58th

SKOCH Summit “Modi Nomics 2.0” held on

29th June 2019 at New Delhi. HSL has also

received ‘SKOCH order of merit under the

categories of “Corporate leader of the year”

and “Turn Around of Hindustan Shipyard

Ltd”