VISAKHAPATNAM: If all goes well as planned, Visakhapatnam-based Hindustan Shipyard Limited (HSL), a defence undertaking, will soon figure among one of the top industries in Andhra Pradesh with a four-digit Value of Production (VoP) index.
As per projections, HSL is expected to reach ₹1,000 crore VoP by March 2023 and between ₹1,500–2,000 crore in the subsequent financial year 2023–24.
Presently, despite challenges due to partial lockdowns during the second and third waves of Coronavirus, HSL has a VoP of ₹760 crore.
Speaking to Deccan Chronicle, HSL chairman and managing director Hemant Khatri said they have clear-cut action plans to reach the four-digit VoP of ₹1,000 crore by March 2023.
“If VoP reaches ₹1,500 crore by 2024, Vizag's HSL will definitely be listed among the top shipyards. There are several parameters to achieve this target. One is to focus on large vendors with high VoP projects,” Khatri observed.
Currently, HSL has a profit of ₹10.69 crore, the operating net profit being ₹50.78 crore against last year’s net loss of ₹14 crore. HSL’s VoP from shipbuilding and ship repair divisions this year stood at 81 percent and 18 percent respectively, as against 57 percent and 41 percent in the previous year.
Currently, construction of two diving-support vessels is at an advanced stage of 70 percent physical progress.
"These vessels have recently been simultaneously launched for trials. They are scheduled for delivery in July 2023," Khatri disclosed.
In ship-repair segment, HSL has repaired 17 vessels of various owners during the previous year. “The shipyard has the distinction of delivering its 200th ship and repairing the 2000th ship in 2021–22 itself,” the CMD said.
As on date, the existing value of order book for ship construction is ₹2,185 crore. It includes two diving support ships of the Indian Navy. In this context, Khatri said discussions with a costing committee set up by Ministry of Defence have been completed. The yard contract could be signed by December 2022.
