SOURCE: AFI
Garden Reach Shipbuilders & Engineers (GRSE), one of India’s premier defense shipyards, has announced plans to increase its shipbuilding capacity from 24 to 28 vessels by the end of 2025. This strategic expansion, driven by a robust order book and growing demand for both naval and commercial vessels, underscores GRSE’s pivotal role in advancing India’s maritime capabilities and supporting the Atmanirbhar Bharat initiative. The Kolkata-based shipyard is also exploring a greenfield facility to further enhance its production capabilities in the coming years.
GRSE’s current shipbuilding capacity stands at 24 vessels, supported by its advanced facilities in Kolkata, which include a dry dock, building berths, slipways, and a non-tidal wet basin for fitting out medium and small ships. The shipyard has been a cornerstone of India’s defense sector, having delivered over 100 warships, including frigates, corvettes, and patrol vessels, with an indigenous content exceeding 90%. To accommodate an expanding order book and capitalize on emerging opportunities in both domestic and international markets, GRSE aims to boost its annual production capacity to 28 vessels by the end of 2025.
This increase in capacity is part of a broader strategy to meet the rising demand for advanced naval platforms and commercial vessels. GRSE’s current projects include three P17A Advanced Frigates, eight Anti-Submarine Warfare Shallow Water Crafts, four Next Generation Offshore Patrol Vessels, and survey vessels for the Indian Navy, alongside export orders for Bangladesh and Germany. The shipyard’s ability to handle complex projects, such as the recently delivered INS Sandhayak—the largest survey vessel built in India—demonstrates its technical prowess and readiness to scale operations.
To achieve the target of 28 vessels by 2025, GRSE has undertaken several strategic initiatives. The shipyard recently acquired four dry docks from Syama Prasad Mookerjee Port, Kolkata (SMPK), enhancing its capacity for ship repairs and construction. These docks, capable of handling vessels up to 160 meters in length, provide GRSE with greater flexibility to manage multiple projects simultaneously. Additionally, GRSE has signed Memorandums of Understanding (MoUs) with other shipyards, including Swan Energy, to collaborate on commercial shipbuilding, further augmenting its production capabilities.
GRSE is also exploring the establishment of a greenfield shipyard dedicated to commercial vessels, with a planned capacity to build ships up to 300 meters in length. Discussions are underway with multiple states to identify a suitable location for this facility, which is expected to be operational within the next five years. This move aligns with GRSE’s ambition to expand its global presence under the “Make in India, Make for the World” initiative, targeting export markets for both naval and commercial platforms.
GRSE’s order book, valued at approximately ?22,000 crore, includes high-profile projects like the P17A stealth frigates and contracts for commercial vessels, such as four Multi-Purpose Vessels (MPVs) for Germany’s Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG, with an option for four additional ships valued at $108 million. The shipyard also secured orders for an advanced ocean-going tug and a dredger for Bangladesh, reflecting its growing export footprint. Analysts project GRSE’s revenue to reach ?10,000 crore by FY28, driven by its strong project execution and expanding order pipeline.
The company’s financial performance in FY25 has been exceptional, with a record revenue of ?5,075 crore and a profit after tax of ?527 crore, underscoring its operational efficiency and market confidence. GRSE’s focus on innovation, including partnerships for AI and robotics-based technologies, and its diversification into areas like portable steel bridges and 30mm Naval Surface Guns, further strengthens its growth prospects.
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