South Korea's HD Hyundai, a leading ship manufacturing company, is considering constructing a shipyard in the coastal district of Thoothukudi, which would significantly benefit India's shipbuilding industry and enhance Tamil Nadu's appeal as an investment location.

Although the investment has not been officially confirmed, it is estimated to be valued at around $2 billion according to reports. 

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At first, the project was known as the "SMITH Project" within HD Hyundai, which stood for Shipbuilding Make in India Together with Hyundai for collaboration with India. 

Hannae Choi, Vice President and Head of the Corporate Planning Division at HD Korea Shipbuilding & Offshore Engineering (HD KSOE), stated at the Tamil Nadu Investment Conclave - 2025 in Madurai that it is now appropriate to refer to it as Shipbuilding 'Make in Tamil Nadu' with Hyundai.

A group of officials from HD KSOE, led by Choi, signed a memorandum of understanding with the Managing Director of Guidance Tamil Nadu, Darez Ahmed, in the presence of Chief Minister MK Stalin.

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HD Hyundai is set to partner with leading Indian companies like Cochin Shipyard and Mazagaon Dock Shipbuilders in the creation of two new commercial shipyards in Thoothukudi.

The total investment for these projects is estimated to be Rs.30,000 crore and is projected to create job opportunities for 55,000 individuals.

 

According to a statement released by the office of Tamil Nadu's Industry Minister TRB Rajaa, the shipbuilding industry in India has a high employment multiplier of 6.4x, meaning that one direct job creates almost six additional jobs (including direct, indirect, and induced employment).

“With its strategic location, favourable climate, and skilled people, I could clearly imagine a mega shipyard being built here,” Choi said about Thoothukudi. “We strongly believe India can achieve its Amrit Kaal Vision 2047, and we believe Tamil Nadu can be the place where that vision becomes reality,” he added.

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At the conference, a grand total of 91 Memorandums of Understanding valued at Rs.36,600 crore were officially agreed upon. Among these agreements is the Reliance - Energy Project committing to an investment of Rs.11,760 crore, which is expected to create 5,000 new job opportunities.

Chief Minister Stalin stated that, since taking office, the government has attracted a dedicated investment of Rs.11,83,000 crore and has provided employment for 34 lakh individuals.

He mentioned that over 80 percent of the projects agreed upon in Memorandums of Understanding have been successfully completed. He emphasized that no other state in India has achieved such a high level of productivity.