How India’s oldest shipyard quietly achieved Rs 20,000 cr order e book – Firstpost

India’s oldest shipbuilding establishment, Hindustan Shipyard Restricted (HSL), has quietly scripted a rare monetary turnaround story.

As soon as tormented by inefficiencies and a sinking order e book, this public sector enterprise (PSU) has clocked in a file turnover of over Rs 1,400 crore within the 2023-24 fiscal 12 months.

That may be a almost threefold enhance from Rs 478 crore in FY 2020-21.

Extra impressively, the corporate has seen an unprecedented order e book enlargement, which jumped tenfold from Rs 2,000 crore to over Rs 20,000 crore throughout the identical interval, Firstpost has discovered.

So, how did HSL do it?

HSL’s path to file revenue

Up to now 4 years, beneath the management of Commodore Hemant Khatri (Retd), the key sauce for HSL has been a mixture of strict monetary administration, innovation and modernisation, and renewed give attention to high quality management.

On the finance entrance, new enterprise fashions and various costing strategies have been adopted. Moreover, the shipyard has signed a number of MoUs to increase its footprint in worldwide markets.

• For capability constructing, HSL has been investing closely in modernisation to help large-scale tasks.

• Some latest examples on this path are its determination to put in a 300-tonne Goliath Crane for setting up giant warships, upgraded equipment

• The addition of a 4.7 MW Load Financial institution– the most important in India in accordance with the provider Statcon Energiaa– and new blasting and portray bays is a step on this path, too.

• The shipyard’s Innovation Incubation Cell is fostering developments in shipbuilding know-how, together with the event of beforehand imported refined gear– strikes that sometimes end in decrease long-term prices.

• HSL has additionally established new requirements in high quality administration by implementing 27 Welding Process Specs. It has achieved important reductions in high quality management observations.

As such, since 2020, the PSU has managed to ship India’s first Ocean Surveillance Ship, launched two Diving Help Vessels with 80 per cent indigenous content material (a primary for the shipyard), and signed a file Rs 18,250 crore contract for 5 Fleet Help Ships.

HSL’s renaissance has additionally resulted within the shipyard increasing its small and medium enterprises (MSME) vendor base from 130 in FY 2020 to 564 in FY 2024.

Nice expectations

HSL is aggressively pursuing export alternatives, negotiating submarine refits with the Vietnam Folks’s Navy and exploring shipbuilding contracts in Bangladesh, Myanmar, and the Philippines.

In its Strategic Imaginative and prescient 2025-2034 doc, unveiled final week, HSL has set the aim of reaching a Worth of Manufacturing (VoP) of Rs 3,500 crore, safe Mini Ratna standing by 2026, and give attention to inexperienced power, superior shipbuilding, and world collaborations.

Its broader intention is to combine Business 4.0 applied sciences, together with robotics, Synthetic Intelligence, and IoT, to reinforce productiveness and effectivity.