Which Companies Manufacture Warships in India?

The shipbuilding industry dates back to ancient civilizations, where skilled craftsmen engineered large fleets and naval systems to protect their territories.

Over time, modern shipbuilding companies have transformed these traditional methods into cutting-edge technologies, designing advanced vessels for defence, offence, and crucial cargo transport.

Today, the military relies heavily on sophisticated naval ships and submarines to safeguard national waters and ensure defence readiness.

Indian shipbuilders play a pivotal role in this effort, designing, constructing, and delivering state-of-the-art warships that can operate in the most challenging environments while supporting a range of military missions.

In this article, we will explore some of the key Indian companies involved in manufacturing warships for the nation's defence forces.

#1 Mazagon Dock Shipbuilders

First on the list is Mazagon Dock Shipbuilders.

Mazagon Dock Shipbuilders Limited (MDL), founded in 1774, has evolved from a small dry dock into a leading shipbuilding company, playing a pivotal role in India's defence sector.

The company has a rich history in the construction of military vessels, having built a total of 802 ships since 1960, which includes 28 warships.

These warships range from advanced destroyers to missile boats, showcasing MDL's expertise in producing vessels that bolster the nation's naval strength.

Additionally, MDL has delivered seven submarines, further enhancing India's underwater defence capabilities.

As a significant contributor to both national and global defence, MDL's shipbuilding capabilities are not limited to warships and submarines.

The company has also constructed a variety of vessels for military support, including cargo ships, supply vessels, and multipurpose support vessels, ensuring that the nation's defence forces are well-equipped for various missions.

Currently, MDL is executing defence-related orders worth approximately Rs 380 billion (bn), and this figure could rise significantly if it secures additional contracts.

One of the most high-profile projects is a Rs 430 bn order from the Indian Navy to construct six Air-Independent Propulsion (AIP)-capable diesel-electric submarines, in collaboration with Germany's ThyssenKrupp Marine Systems GmbH (TKMS).

Successful field trials of this project have already taken place, positioning MDL as a frontrunner in India's naval defence advancements.

Mazagon Dock's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	49,048.00	40,478.00	57,333.00	78,272.00	94,666.00
Revenue Growth (%)	6.3	(-17.5)	41.6	36.5	20.9
Net Profit	3,772.00	4,535.00	5,631.00	10,461.00	18,089.00
Net Profit Margin (%)	7.7	11.2	9.8	13.4	19.1
Return on Equity (%)	12.3	13.2	14.6	22	29
Return on Capital Employed (%)	24.2	17.9	19.8	29.7	39.1

Source: Equitymaster

Coming to its financials Mazagon Dock's revenue and net profit have grown at a compounded annual growth rate (CAGR) of 15.5% and 30.9% respectively from FY-20-24.

It has been delivering strong returns, with the RoE and RoCE averaging at a healthy 18.2% and 26.1%, respectively.

MDL's plans for the future involve not just the construction of cutting-edge warships but also significant investments in infrastructure.

With a Rs 30 bn investment planned over the next 3-4 years, MDL aims to expand its production capacity to handle larger and more complex military vessels.

This is supported by the company's free cash reserves of Rs 40 bn, ensuring financial stability for these ventures.

One of the key infrastructural developments involves 37 acres of land owned by MDL near Nhava Sheva Port, which the company plans to develop into a greenfield shipyard with a floating dry dock.

This move is designed to future-proof MDL's ability to meet the increasing demand for larger military vessels with deeper drafts.

While MDL can currently build 11 submarines and 10 warships simultaneously at its existing facilities, these new additions will significantly enhance its capacity and allow for more efficient construction of larger platforms.

Both the existing and new facilities will function with cross-functional capabilities, enabling seamless collaboration and maximizing operational efficiency.

With its rich history in warship and submarine construction, coupled with its ambitious plans for future military projects, Mazagon Dock Shipbuilders is firmly positioned as a cornerstone of India's defence sector.

For more details, see the Mazagon Dock Ship. company fact sheet and quarterly results.

#2 Cochin Shipyard

Next on the list is Cochin Shipyard.

Cochin Shipyard Limited (CSL) stands out as one of India's most modern and advanced shipyards, with a significant focus on building warships for the Indian Navy.

Established in 1972, CSL has become a key player in the defence sector, leading India's efforts in Indigenous warship construction.

The company made history by building India's first indigenous aircraft carrier, INS Vikrant, which is not only the largest warship ever built by CSL but also a testament to the country's growing self-reliance in defence manufacturing.

CSL is further strengthening its role in the defence industry by taking on high-profile projects for the Indian Navy. It has signed a Rs 9,805 crore contract to build six Next Generation Missile Vessels (NGMV) for the Navy.

These heavily armed warships, designed with stealth, high-speed, and offensive capabilities, will provide critical offensive power against enemy warships, merchant vessels, and land targets.

The delivery of these missile vessels is set to begin in March 2027, marking CSL's entry into advanced, weapon-intensive platforms.

In addition to the missile vessels, CSL is also constructing eight specialized vessels for the Indian Navy. These vessels, valued at Rs 6,300 crore, are designed for a range of missions, including interdiction and destruction of subsurface targets, search and rescue operations, and mine-laying activities.

The first three ships in this series have been named INS Mahe, INS Malvan, and INS Mangrol. These vessels are also capable of day and night search and rescue missions and can engage intruding aircraft, making them versatile assets in India's naval defence strategy.

As the only shipyard in India capable of undertaking underwater repairs on the Indian Navy's existing aircraft carrier, CSL holds a unique position in the country's naval defence infrastructure.

Cochin Shipyard's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	34,225.00	28,189.00	31,909.00	23,646.00	38,305.00
Revenue Growth (%)	15.4	(-17.6)	13.2	(-25.9)	62
Net Profit	6,320.00	6,087.00	5,640.00	3,047.00	7,833.00
Net Profit Margin (%)	18.5	21.6	17.7	12.9	20.4
Return on Equity (%)	17	15.1	12.8	6.9	15.7
Return on Capital Employed (%)	23.6	20.8	18.1	10.4	22.2

Source: Equitymaster

Between FY20 and FY24, Cochin Shipyards' revenue and net profit have surged with an impressive CAGR of 13.2% and 11.2%, respectively.

The company has demonstrated consistent financial strength, boasting an average RoE of 28.6% and RoCE of 39.4%.

Going forward, with major investments of Rs 2,800 crore in infrastructure expansion, including a new dry dock and ship repair yard in Kochi, CSL is enhancing its capacity to build and maintain large warships.

The company's expansion into Mumbai, Kolkata, and Port Blair, and the development of subsidiary shipyards in Kolkata and Malpe further underscores its commitment to boosting India's defence capabilities.

For more details, see the Cochin Shipyard company fact sheet and quarterly results

#3 Garden Reach Shipbuilders

Next on the list is Garden Reach Shipbuilders.

Garden Reach Shipbuilders and Engineers (GRSE) has been at the forefront of India's warship-building capabilities since its inception.

Founded in 1884 and nationalized in 1960, GRSE played a pivotal role in Indian defence history by delivering India's first indigenously built warship, INS Ajay, in 1961.

Over the years, GRSE has designed and constructed 108 warships and patrol vessels for the Indian Navy and Coast Guard, including guided-missile frigates, corvettes, amphibious warfare vessels, and fast patrol ships.

These vessels have become essential components of India's maritime defence strategy, making GRSE a key contributor to national security.

Currently, GRSE is executing six major projects that involve the construction of 26 ships, 19 of which are warships for the Indian Navy. What sets these vessels apart is the high level of Indigenous content, aligning with India's push toward self-reliance under the Atmanirbhar Bharat initiative.

GRSE's warship-building capabilities are not confined to domestic orders. The shipyard has successfully exported warships to friendly foreign nations, broadening its global footprint in line with the Indian government's 'Make in India - Make for World' vision.

This international expansion underscores GRSE's growing influence in the global defence market, where it is aggressively pursuing contracts for naval platforms.

GRSE's collaboration with Rolls Royce for the co-production of high-speed marine diesel engines, as well as its Rs 250 crore contract to manufacture 30 MM Naval Surface Guns for the Indian Navy, further cements its reputation as a state-of-the-art shipbuilder capable of meeting the Indian Navy's evolving defence needs.

Garden Reach Shipbuilders' Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	14,333.00	11,408.00	17,544.00	25,611.00	35,926.00
Revenue Growth (%)	3.4	(-20.4)	53.8	46	40.3
Net Profit	1,635.00	1,535.00	1,895.00	2,281.00	3,573.00
Net Profit Margin (%)	11.4	13.5	10.8	8.9	9.9
Return on Equity (%)	15.7	13.5	15.1	16.1	21.3
Return on Capital Employed (%)	21.8	19.1	20.6	22.3	29.7

Source: Equitymaster

Between FY20 and FY24, Garden Reach Shipbuilders revenue and net profit have surged with an impressive CAGR of 21% and 26.6%, respectively.

This robust growth has led to a strong RoCE and RoE averaging 16.4% and 22.7% over the last 5 years.

The company is also looking ahead with its ambitious 'VISION 2030' strategy. GRSE is focusing on developing cutting-edge technology for the next generation of warships, including Unmanned Surface Vessels (USVs) that leverage Artificial Intelligence (AI) and Machine Learning (ML).

The shipyard has already developed a 5-meter Autonomous Surface Vessel named Swadheen, which can be used for critical defence missions such as bathymetric surveying, mine-hunting, and explosive ordnance disposal.

For more details, see the Garden Reach Shipbuilders & Engineers company fact sheet and quarterly results.

#4 L&T

Next on the list is L&T.

Larsen & Toubro (L&T) has firmly established itself as a leading force in India's warship and naval defence sector.

With extensive experience in designing and building advanced naval platforms, L&T has significantly contributed to strengthening the Indian Navy's capabilities.

The company's expertise spans a broad range of naval assets, including frontline warships such as frigates, destroyers, and corvettes, as well as submarines.

L&T's journey into defence shipbuilding began in 2010 when it secured its first order. Since then, the company has delivered over 70 defence vessels, showcasing its strong design and construction capabilities.

One of its most notable achievements is its involvement in the design, engineering, and construction of India's first nuclear-powered submarine, a landmark project that demonstrated L&T's multi-disciplinary expertise in building highly complex naval platforms.

In 2022, L&T strengthened its position further by partnering with Garden Reach Shipbuilders and Engineers (GRSE) to build key warship components.

This collaboration between two major defence shipbuilders highlights L&T's expanding role in supporting India's naval defence infrastructure.

In 2023, this partnership saw the successful launch of two warships of different classes into the water, while the keel of a third vessel was laid at L&T's shipyard in Kattupalli, Chennai.

GRSE, a Kolkata-based defence shipyard, is constructing these vessels, reinforcing the synergy between the two companies in producing advanced naval platforms.

The company's warship-building strengths lie in its modular design and construction techniques, supported by advanced in-house design centres for warships and submarines. Equipped with cutting-edge tools such as a Virtual Reality Studio, these centres enable L&T to deliver innovative solutions for the Indian Navy's evolving needs.

In addition to building warships, L&T has also become a trusted partner for the Indian Navy by supplying mission-critical marine equipment and systems installed on many of India's frontline warships.

The company's services extend beyond new construction, offering lifecycle management and mid-life upgrades for warships and submarines, ensuring these vessels remain operational and technologically up-to-date.

L&T's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	1,454,524.00	1,359,790.00	1,565,212.00	1,833,407.00	2,211,129.00
Revenue Growth (%)	7.6	(-6.5)	15.1	17.1	20.6
Net Profit	101,678.00	46,690.00	102,911.00	126,249.00	155,697.00
Net Profit Margin (%)	7	3.4	6.6	6.9	7
Return on Equity (%)	15.3	6.2	12.5	14.2	18.1
Return on Capital Employed (%)	16.6	13.2	16.7	17.9	21.3

Source: Equitymaster

L&T's revenue and net profit have grown at a 5-year CAGR of 10.3% and 10%, respectively. This robust growth has led to a strong RoCE and RoE averaging 13.3% and 17.1% over the last 5 years.

Going forward, L&T aims to broaden its product portfolio within the warship segment. As the company continues to enhance its capabilities, it remains a leading force in India's defence shipbuilding sector.

For more details, see the L&T company fact sheet and quarterly results.

#5 Hindustan Aeronautics

Last on the list is Hindustan Aeronautics (HAL).

Although HAL is not directly involved in manufacturing warships, it plays a crucial role in supporting India's naval defence systems, particularly through the development of marine gas turbine engines and helicopters designed for warship applications.

With India aiming to develop its own marine gas turbine engines to power the next generation of warships for the Indian Navy, HAL is positioned as a critical partner.

This shift has gained even more importance in the wake of the ongoing Russia-Ukraine war, as India seeks alternatives to its dependency on Russian-made engines.

Currently, the Indian Navy operates over 150 gas turbine engines produced by Zorya-Mashproekt. To reduce reliance on foreign suppliers, HAL has taken on the assembly of LM2500 marine gas turbine engines, which are manufactured by GE Marine.

These engines have been successfully integrated into Indian naval vessels, including the indigenous aircraft carrier INS Vikrant and advanced warships in the P-17 and P-17A classes. So far, HAL has delivered 22 LM2500 gas turbines for 11 Indian naval vessels, strengthening the country's self-reliance in marine engine technology.

In addition to its work with turbine engines, HAL has also collaborated with the Indian Navy to develop the HAL Dhruv, a new utility helicopter tailored for maritime environments. This helicopter is designed to meet the specific operational needs of warships and bolster the Navy's maritime defence capabilities.

HAL's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24
Revenue	214,452.00	228,823.00	246,200.00	269,275.00	303,811.00
Revenue Growth (%)	7.2	6.7	7.6	9.4	12.8
Net Profit	28,827.00	32,456.00	50,799.00	58,277.00	76,210.00
Net Profit Margin (%)	13.4	14.2	20.6	21.6	25.1
Return on Equity (%)	21.8	21	26.3	24.7	26.2
Return on Capital Employed (%)	32.7	29.5	27.4	27.9	35.2

Source: Equitymaster

HAL's revenue grew at a CAGR of 8.7% from FY20 to FY24, while net profit grew at 26.8%.

Despite this, the company maintained strong financial health, with an average RoE of 24% and RoCE of 30.6%.

Looking ahead, HAL is focusing on the development of the Utility Helicopter (Marine) or UHM, which is being optimized for use in maritime settings.

The UHM is expected to be fully operational by 2025-2026, marking another significant milestone in HAL's contribution to India's naval defence infrastructure.

For more details, see the Hindustan Aero. company fact sheet and quarterly results.

Conclusion

The Indian government is on the verge of approving several major defence projects, with a combined value of Rs 1.2 trillion (tn). The Defence Acquisition Council (DAC) is set to meet on Tuesday next week to review and potentially authorize these high-profile initiatives.

A significant portion of this approval process involves issuing a tender worth approximately Rs 700 bn to Indian shipyards, including those in the private sector, as part of the 'Make in India' initiative.

One of the most notable projects under consideration is the Indian Navy's Project 17 Bravo, which involves the construction of seven advanced stealth frigates. Valued at around Rs 700 bn, this project aims to enhance the Navy's capabilities with some of the most modern warships ever built in India.

Leading the race for this contract are Mazagon Dockyards Limited (MDL) and Garden Reach Shipbuilders and Engineers (GRSE), both of which are key players in India's naval shipbuilding industry.

MDL is currently constructing four frigates under Project 17A, while GRSE is building three, positioning these companies as strong contenders for the upcoming contracts.

The Indian government has set ambitious targets, aiming for a turnover of Rs 1.8 tn in defence manufacturing by 2025, with a focus on self-reliance and indigenous production.

Given this momentum, the warship sector is well-positioned for significant growth, driven by the development of the broader defence industry.

Nevertheless, it is always prudent to conduct thorough research before making any investment decisions. Ensure investment aligns with your financial objectives and matches your risk tolerance level.

By the way, you can also check out the video version of this editorial on Equitymaster's YouTube channel.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...