GRSE joins hand with DEMPO, Goa to build commercial vessels on the West Coast

• Garden Reach Shipbuilders and Engineers (GRSE) Ltd and the DEMPO Group have partnered to expand into commercial shipbuilding
• GRSE's move into the commercial sector, with support from DEMPO's strategic shipyards, aims to capture a significant share of both Indian and global markets
• This collaboration aligns with India's self-reliance mission, fostering employment and sustainable practices for future shipbuilding orders

In a significant move towards diversification, Garden Reach Shipbuilders and Engineers (GRSE) Ltd, renowned for its warship construction, and the DEMPO Group, a leading business conglomerate from Goa, have inked a Memorandum of Understanding (MoU). This collaboration aims to establish a model for constructing commercial vessels at three premier shipyards belonging to the DEMPO Group in Goa and Bhavnagar.

This groundbreaking venture marks GRSE's foray into the realm of commercial shipbuilding, signifying its ambition to capture a substantial market share in both domestic and international construction of commercial vessels. Building upon its success in implementing the Public Private collaboration model in warship construction, GRSE now ventures into the commercial shipbuilding sector by partnering with M/s V S Dempo Holdings Private Ltd.

Research indicates that the Indian shipbuilding market is projected to reach USD 8.76 billion by 2028, while the global shipbuilding market is expected to grow from USD 170 billion to USD 230 billion by the same year. Despite these promising figures, India's contribution to global commercial shipbuilding remains below 1 percent, lagging behind the 3.5 percent achieved in 2007. This disparity has been attributed to the challenges faced by private shipyards, despite subsidies, and state-owned shipyards largely focusing on defense orders.

GRSE, however, is taking on the challenge of breaking this trend. It seeks to leverage its technological capabilities and resources to compete with cost-effective shipbuilders like China, Vietnam, and Turkey. By securing contracts from European, Middle Eastern, and African markets, GRSE aims to expand its presence and competitiveness on the global stage.

Commodore P R Hari, Chairman & Managing Director of GRSE, expressed optimism in the face of challenges within the global commercial shipbuilding sector. He acknowledged the rise of Chinese competition and stricter environmental regulations as obstacles for Indian shipbuilders. Nonetheless, he noted that the industry's rapid technological evolution presents opportunities for companies that can adapt. GRSE's collaboration with the DEMPO Group intends to capitalize on the growing demand for commercial vessels, especially from export clients in Europe and the Middle East. The strategic location of DEMPO's shipyards provides a logistical advantage for these clients compared to competitors in China, Vietnam, and Turkey.

Shri Srinivas Dempo, Chairman of the DEMPO Group, emphasized the strategic importance of shipbuilding in terms of energy security, national defense, and the growth of heavy engineering. He highlighted shipbuilding's potential to contribute to India's self-reliance mission ('Aatmanirbhar Bharat') and generate significant employment, particularly in remote, coastal, and rural areas.

The collaboration between GRSE and Dempo is poised to create a productive ecosystem, harnessing each other's expertise and capacities to secure more domestic and international shipbuilding orders. The partnership also envisions tapping into the potential of green shipbuilding, aligning with sustainable environmental practices.

About GRSE: GRSE, a premier warship builder in India, originated in 1884 as a small workshop for vessel repairs. Under the Ministry of Defence, GRSE has grown to become a leader in shipbuilding, including warships, export vessels, and more. With accolades for excellence and quality, GRSE has contributed significantly to India's naval capabilities.

About DEMPO Group: The DEMPO Group, a prominent corporate conglomerate in Goa, has a diverse portfolio ranging from petroleum coke production to shipbuilding, real estate, media, sports promotion, and more. The Group's ethical approach to business expansion and corporate social responsibility has been integral to its growth and recognition.