HD Hyundai picks Tamil Nadu’s Thoothukudi for multi-billion dollar shipyard project
Hyundai shipping project signs the MoU in the presence of Tamil Nadu Chief Minister MK Stalin, at the TN Rising event in Madurai
| Photo Credit:
ASHOK R
In a major boost to India’s shipbuilding sector and to Tamil Nadu as an investment destination, South Korea’s HD Hyundai, one of the world’s largest ship manufacturers, plans to build a shipyard in the coastal district of Thoothukudi. While there is no official confirmation on the investment yet, sources said it could be worth nearly $2 billion.
The initiative was initially referred to within HD Hyundai as “SMITH Project” — Shipbuilding Make in India Together with Hyundai — for cooperation with India. “But today, standing here in Tamil Nadu, I believe it is time to say: Shipbuilding ‘Make in Tamil Nadu’ with Hyundai,” said Hannae Choi, Vice President and Head of the Corporate Planning Division at HD Korea Shipbuilding & Offshore Engineering (HD KSOE). He was speaking at the Tamil Nadu Investment Conclave – 2025 in Madurai on Sunday.
At the, a team of HD KSOE officials led by Choi signed an MoU with Guidance Tamil Nadu MD Darez Ahmed, in the presence of Chief Minister MK Stalin.
Thoothukudi rising
HD Hyundai will join Indian majors — Cochin Shipyard and Mazagaon Dock Shipbuilders — that have committed to establish two greenfield commercial shipyards in Thoothukudi, with a combined investment of ₹30,000 crore and are expected to generate employment for 55,000 people.
“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.
HD Hyundai operates shipyards in Vietnam, the Philippines, and Saudi Arabia. “We are here in India — a nation full of energy and talent, with limitless potential, a nation rising with confidence and purpose and a nation that has chosen HD Hyundai as a partner. That is why we are here in India,” he said.
A statement from the office of Tamil Nadu Industry Minister TRB Rajaa said that the shipbuilding employment multiplier is high, often cited around 6.4x in India – one direct job supports nearly six total jobs (direct, indirect, and induced).
At the summit, a total of 91 MoUs worth ₹36,600 crore were signed at the event. This includes Reliance – Energy Project investing ₹11,760 crore (5,000 jobs).
Chief Minister Stalin said that since assuming office, the government has brought in a committed investment of ₹11,83,000 crore, and ensured employment for 34 lakh people. More than 80 per cent of the projects signed under MoUs have been completed. No other State in India has shown such a level of output, he added.
Some of the major investments announced on Sunday:
HD Hyundai – Ship building
Reliance – renewable energy project; ₹11,760 crore investment; 5,000 jobs
Chowgle SBD – ship building, ship rig repair & off shore EPC; ₹7,500 crore; 5,000 jobs.
Pei HeiHei – non leather-footwear; ₹800 crores, 15,000 jobs
Electronics SFO – PCB manufacturing; connectors and composites; ₹2,270 crore and 2,635 jobs
Published on December 7, 2025
