Mitsui O.S.K. Lines (MOL), a major Japanese shipping company, is in discussions with the Indian government and local shipyards to build vessels in India. This move is part of MOL’s strategy to expand its presence in India, where it currently operates the fourth-largest fleet, with an ambition to become the second-largest. The collaboration aligns with the Indian government’s “Make in India” initiative and its broader plan to bolster the domestic shipbuilding industry.
MOL’s Strategic Plans in India
MOL’s executive officer for the region, Anand Jayaraman, confirmed the company’s interest in leveraging India’s shipbuilding capabilities. As a ship-owning company, MOL plans to partner with local shipyards to fulfill its vessel requirements. The company is poised to place an initial order for medium-range ship tankers from Cochin Shipyard. This potential partnership would be a significant step towards diversifying MOL’s shipbuilding options, which are currently concentrated in China, South Korea, and Japan.
In addition to shipbuilding, MOL India has other strategic plans, including:
- Rail Logistics: The company is set to enter the railway logistics sector in India, with an announcement expected by the end of this year or early next year.
- Startup Investments: MOL plans to acquire minority stakes in 3-4 startups and pursue acquisitions to strengthen its air freight operations, particularly in northern India.
- Green Shipping: MOL aims to become a leader in green shipping within India’s maritime growth story.
India’s Shipbuilding Push
The Indian government is actively working to develop its shipbuilding sector, which currently holds less than 1% of the global market. To achieve this, the Ministry of Ports, Shipping, and Waterways is pursuing a multi-pronged strategy:
- Greenfield and Brownfield Clusters: The government plans to develop at least three greenfield shipbuilding clusters and a couple of brownfield projects on India’s coasts. A greenfield project is a new development built from scratch on undeveloped land, while a brownfield project involves the redevelopment or expansion of an existing industrial site.
- Foreign Partnerships: India is actively seeking investments and technology transfers from international companies, particularly from Japan and South Korea, to establish manufacturing and ship repair facilities. This effort is aimed at improving the country’s technological capabilities and competitiveness.
The collaboration with companies like MOL is a crucial part of India’s plan to elevate its shipbuilding industry and increase its share of the global market.
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Source: The Mint
