BL reported that Indian shipyards’ order book cross INR 30,176 crore companies that supply various components and services have slowly started setting up their base in the country.
Earlier this year, Rolls Royce inaugurated its marine service facility in Navi Mumbai to support the growing shipping industry in India. Industry sources said that the new facility, which employs 60 people, will offer support services and undertake repair and upgradation of Rolls-Royce products in the region. The company plans to expand its base and start manufacturing activities in about a year.
Wartsila has an export oriented unit situated at Khopoli in Maharashtra. All orders placed by Indian customers are on the group companies such as Wartsila Finland and Wartsila Netherlands. Mr Sharad Sinha associated vice president of sales of Wartsila India said that “The production of gearboxes, controllable pitch propellers and shafting at Khopoli could be as high as one fourth of the global requirement of Wartsila for these products.”
MacGregor, the Euro 748 million firm which provides engineering solution for maritime transportation and offshore industries plans to establish a local presence in India. It has nominated its branch office in Dubai to act as the back up office until the service branch in Mumbai builds up its own resources to handle the service business independently.
With shipbuilding firms still sourcing below 10% of their input components from India, the Government is open to considering various options to encourage setting up of ancillary and ship repair units in the country as these units have a significant employment generation potential.
Mr Rajiv Gupta joint secretary of shipping ministry stressed on the need to increase the level of ancillarisation in the country.
Mr V Kumar MD of Bharati Shipyard said that “For every one person employed in a shipyard, employment is generated for about seven persons in ancillary and support industry.”
Industry experts said that expansion of ancillary units in the country would depend on the Indian shipbuilding industry reaching a critical mass and fiscal sops. Component manufacturers have to be assured of continuous demand before they start setting up their base here.
