In an interaction with Shri R.K. Dash Director (Finance), Garden Reach Shipbuilders & Engineers Ltd

A Substantial Order Book To Propel Growth

Garden Reach Shipbuilders and Engineers (GRSE) Ltd. is in the process of expanding its global presence in keeping with the Government of India’s policy of ‘Make in India, Make for World’. With its expertise in building state-of-the-art warships for the Indian Navy and Indian Coast Guard, the company is now aggressively pursuing business opportunities for naval platforms in friendly foreign countries. In this interview, R K Dash, Director (Finance), GRSE, elaborates about the company’s order book and future plans

How is the company balancing its focus on domestic warship building with the pursuit of commercial shipbuilding opportunities for export? What are the potential growth projections for each segment?

While the focus of the company is defence shipbuilding, the national mission of ‘Make in India, Make for the World’ cannot be lost sight of. Accordingly, GRSE is also pursuing niche and challenging export orders, both military and commercial shipbuilding.

Can you enlighten on the segment-wise order book and execution plans of the total order book?

The company has a substantial order book amounting to ₹22,653 crore as on March 31, 2024, primarily composed of warship building orders for the Indian Navy. The segment-wise breakdown and execution plans are as follows:
1. Three P-17 Alpha ships and deliveries are scheduled from mid-2025 to mid-2026.
2. Four large survey vessels. One has already been delivered and the others are expected to be delivered by mid-2025.
3. Eight anti-submarine shallow water crafts. The project is expected to be completed by FY27.
4. Four next-generation ocean-going patrol vessels. The contract was signed in March 2023, and the project is on track for completion by FY29.

In addition to these naval projects, the company has secured orders for one dredger from the Government of Bangladesh, one ocean-going tug from Bangladesh Navy, four multipurpose vessels from a German company and one ocean research vessel from the National Centre for Polar and Ocean Research. The diversified business segment of GRSE including portable bridge manufacture, deck machinery items and engine assembly, testing and overhauling and manufacture of other engineering products are also part of the execution plan.

What is the current status of the anticipated order for the next-generation Corvette project? Can you provide a timeframe for when you expect this order to be confirmed?

The tendering process is on. Let us wait and watch.

Can you shed some light on your competitive landscape?

The current defence market in India presents immense potential for defence manufacturing. Complex and lengthy procurement processes, excessive competition, lack of cost advantages due to low-scale manufacturing are some of the challenges for shipbuilders in India. However, now GRSE is immune to such challenges or competition and our growth trajectory will be maintained.

Can you elaborate on the company’s plans for developing green energy platforms? What specific technologies or projects are being explored in this area?

GRSE is making significant strides in green energy initiatives, with a notable project being the development of an electric ferry for the Government of West Bengal. This project underscores GRSE’s commitment to sustainable development and innovation in the maritime sector. The electric ferry aims to reduce carbon emissions and promote eco-friendly transportation on waterways.

GRSE is exploring advanced technologies such as batterypowered propulsion systems, energy-efficient design and renewable energy integration to enhance the ferry’s performance and sustainability. This initiative not only supports the government’s green energy goals but also positions GRSE as a leader in the development of sustainable maritime solutions.