HD Hyundai, one of South Korea’s biggest ship manufacturers, has signalled serious interest in building a large shipyard in Thoothukudi, marking one of the most ambitious industrial moves seen in Tamil Nadu’s coastal belt in recent years. While the company has not officially confirmed the size of the investment, people familiar with the discussions suggest the number could approach $2 billion, indicating a project of considerable scale.
The idea first appeared within the company as the “SMITH Project” — an acronym for Shipbuilding Make in India Together with Hyundai. However, during the Tamil Nadu Investment Conclave - 2025 held in Madurai on January 5, HD Korea Shipbuilding and Offshore Engineering vice president Hannae Choi said the project vision had already expanded. Standing on stage in Tamil Nadu, he remarked that the time had come to think in more local terms — “Make in Tamil Nadu with Hyundai” — hinting that the State may become the focal point of the company’s India strategy.
A memorandum of understanding was signed at the event between HD KSOE and Guidance Tamil Nadu, with chief minister MK Stalin present during the exchange. The signing suggests that both sides are exploring the feasibility of the project, although the finer details are expected to evolve over the coming months.
If HD Hyundai goes ahead, the company will join major Indian shipbuilders — Cochin Shipyard and Mazagaon Dock Shipbuilders — which have already committed to two greenfield commercial shipyards in Thoothukudi. Together, their announced investment stands at around ₹30,000 crore and is expected to create nearly 55,000 jobs. For a district long seen as a maritime gateway, this cluster of new shipyards could push Thoothukudi into a strategic position on the global shipbuilding map.
Choi described the district as a place with the right ingredients for a mega shipyard — a suitable coastline, favourable weather conditions and a skilled workforce. He also linked the project to India’s Amrit Kaal Vision 2047, suggesting that Tamil Nadu could play a larger role in that long-term industrial roadmap. HD Hyundai already operates shipyards in Vietnam, the Philippines and Saudi Arabia, and expanding into India appears to be part of a wider plan to diversify production bases.
Officials at the conclave also highlighted the job multiplier effect associated with shipbuilding. Industry estimates often cite that one direct shipbuilding job may support around six additional jobs, once indirect and induced employment is factored in. If the new shipyards progress as planned, the economic spillover could reshape the wider region.
The conclave itself turned into a significant investment day for Tamil Nadu, with 91 MoUs worth ₹36,600 crore being signed across sectors. Reliance announced a renewable energy project worth ₹11,760 crore, which is expected to create around 5,000 jobs. Chowgle SBD committed to a shipbuilding and offshore EPC project valued at ₹7,500 crore, also linked to 5,000 jobs. Pei HeiHei announced a non-leather footwear facility worth ₹800 crore with a surprisingly large employment outlook of 15,000 jobs. Electronics SFO confirmed investments of ₹2,270 crore in PCB manufacturing, connectors and composites, generating an estimated 2,635 jobs.
At the event, chief minister Stalin said Tamil Nadu had mobilised committed investments of ₹11,83,000 crore since his government took office, creating employment for 34 lakh people. He also claimed that more than 80% of MoU-linked projects have been completed, a figure he framed as unmatched by any other State.
For Tamil Nadu, the momentum appears to be pointing toward larger-scale manufacturing, energy and maritime infrastructure. For Thoothukudi, especially, the months ahead could determine whether the district becomes India’s next major shipbuilding cluster.
With global firms like HD Hyundai expressing confidence and Indian shipbuilders already committing capital, the region may be on the cusp of a significant industrial shift — provided the projects move from MoUs to on-ground activity as expected.