South Korea’s HD Hyundai to Set Up $2-Billion Shipyard in Tamil Nadu After Landmark Deal

Chennai: South Korean giant HD Hyundai is gearing up to invest $2 billion in a state-of-the-art shipyard in Tamil Nadu, marking one of the biggest foreign bets on India’s fast-growing maritime sector, according to a report by Pulse, Maeil Business News Korea’s English service.

The company has inked a strategic agreement with the Tamil Nadu government, emerging as a frontrunner to become India’s official partner in its ambitious national shipyard development programme.

Shipyard Planned in Madurai

The proposed facility will come up in Madurai, though key details — including its scale, structure, and investment model — are still under negotiation with the Centre.

Tamil Nadu is among the four states shortlisted for India’s mega shipyard vision, alongside Gujarat and Andhra Pradesh, as New Delhi aims to become the world’s fifth-largest shipbuilding hub.

As part of the TN Rising Investment Conclave – Madurai, TN Govt signed a landmark MoU with the largest shipbuilding company in the world HD Hyundai for setting up their mega shipbuilding yard in #Thoothukudi.

Thoothukudi is seeing an unprecedented development phase, with PSUs… pic.twitter.com/vDnRDHrpNm

— Tamil Nadu Infra (@TamilNaduInfra) December 7, 2025

Thoothukudi Emerges as Prime Location

Within Tamil Nadu, Thoothukudi is being viewed as a frontrunner site due to its climate similarities with Ulsan—home to HD Hyundai Heavy Industries—and its rapidly growing industrial ecosystem.
The region already hosts South Korean majors like Hyundai Motor and Samsung Electronics, while massive investments in port infrastructure are underway.

Deepening Industrial Ties with India

HD Hyundai is rapidly expanding its presence in India. Earlier this month, the company signed an MoU in Bengaluru with BEML, a Defence Ministry PSU, for collaboration in maritime and port crane development.
The partnership covers design, manufacturing, and quality assurance, aiming to build domestic capability to produce advanced port cranes in India. HD Hyundai also plans to supply goliath and jib cranes to Indian shipyards.

In February, HD Hyundai Samho delivered a 600-tonne Goliath crane to the state-owned Cochin Shipyard. In August, HD Korea Shipbuilding & Offshore Engineering announced the acquisition of HD Hyundai Eco Vina from Doosan Enerbility, further strengthening the conglomerate’s crane business focus.

Cochin Shipyard Partnership Expands

In July, the South Korean major signed an MoU with Cochin Shipyard to cooperate on design, procurement, productivity, and skill development. This partnership has since been expanded to include naval vessel projects, deepening Hyundai’s strategic footprint in India’s maritime growth story.

‘India Is a Market of Strong Potential’

“India has tremendous growth potential, backed by strong government support for shipbuilding,” an HD Hyundai spokesperson said, adding that the company aims to strengthen cooperation in the shipbuilding and offshore sectors and develop India into a “new growth engine”.