Profile

Hindustan Shipyard Ltd., strategically located on the East Coast of the Indian peninsula, at Visakhapatnam, Andhra Pradesh, is the nation’s premier shipbuilding organization catering to the needs of shipbuilding, ship repairs, submarine construction and refits as well as design and construction of sophisticated state-of-the-art offshore and onshore structures. Direct sea access, excellent infrastructure, skilled work force, rich expertise garnered over the years in building 181 vessels and repairing 1965 vessels of various types enable HSL to offer competent services for the defence and maritime sectors. Considering the strategic requirements, the yard was brought under the administrative control of the Ministry of Defence on 22 Feb 2010. The Registered Office of the company is located in Visakhapatnam and has regional office at New Delhi.

 

 HSL Main Gate

History
 
The long journey towards making ships in India started during the pre-independent years with the founding of the first green-field shipyard in the year 1941 in the name Scindia Steam Navigation Co. Ltd by the great industrialist and visionary Seth WalchandHirachand which is today known as the Hindustan Shipyard Ltd.
 
Walchand selected Vishakhaptnam as a strategic and ideal location and took possession of land in November 1940. The World War II was going on and in April 1941, the Japanese bombed the town. However, Walchand was unfettered and decided to go ahead with his plan of building a shipbuilding industry in India. In the days when it was unthinkable of foundation ceremony to be done by anyone other than British officials, the truly patriotic Walchand decided to break the tradition and the foundation stone for the shipyard was laid by Dr.Rajendra Prasad on 21 June 1941, who was acting Congress President at that time. The first ship to be constructed fully in India after independence was built at the Scindia Shipyard and named JalUsha. It was launched in 1948 by Jawaharlal Nehru by the first Prime Minister of India, at a ceremony where the families of Seth WalchandHirachand, late NarottamMorarjee and TulsidasKilachand, the partners of Scindia Shipyard, were present along with other dignitaries and industrialists. 
 
Walchand died in 1953, and the Scindia Shipyard continued to flourish under next of kins of founders. However, later on the government of India decided to nationalise the Scindia Shipyard, as it was a sensitive and strategic related to defence sector of the country. After Independence, two thirds of its holdings were acquired by Govt. of India in 1952 and Hindustan Shipyard Ltd was incorporated on 21 Jan 1952. Balance one third share was acquired by GoI in Jul 1961 and the Shipyard became a fully owned Govt. of India undertaking under the administrative control of Ministry of Shipping.
 
Considering the strategic requirements of the nation, the yard was brought under the administrative control of the Ministry of Defence on 22 Feb 2010. The Registered Office of the company is located in Visakhapatnam and has regional offices at New Delhi.        
  
                                                      Contruction in Progress           Seth WalchandHirachand
 
   
   ‘The launch of India’s first indigenous steam ship JalaUsha’ in 1948 after Independence’
 
 
 
   HSL Builders Monument - A tribute to our shipbuilders  
 
Existing Infrastructure and Facilities
 
Sprawling in an area of 117 acres, the shipyard has an ergonomic layout that ensures unidirectional material flow. 2000 T / month of steel can be processed in the yard with a stockyard that can hold 30,000 tonnes of steel, modern plate and section treatment plant, NC Cutting Machines, heavy duty presses, self-elevating trucks capable of handling blocks up to 250 tonnes and large prefabrication shops with EOT cranes of adequate capacity.
 
The hull construction facilities include a fully-covered Building Dock (240 x 53 M) equipped with cranes of maximum capacity of 300 T and three Slip Ways capable of launching up to 33000 DWT. Indeed, the first ever 30000 DWT launch in India was done in 2007 in HSL. The Yard has a long outfitting quay (460 m) of 10M clear depth equipped with self-contained services and facilities.
 
In addition to the existing facilities, the yard has about 21 Acres of land (OPF Yard) and 20 Acres of land in the Colony which can be effectively utilised for augmenting the existing facilities for new construction projects.
 
 
 Covered Building Dock
 
   
 Outfit Jetty
    
 Launching of Vessels at Slipways
 
 
Ship Repairs 
 
The Dry dock, constructed in the year 1971, is an important adjunct to the Shipyard for undertaking repairs of ships and oil rigs. With a size of  244 x 38 M, it is capable of handling vessels up to 70,000 DWT. The Dry Dock, the biggest and modern dock in the East Coast, with 544 meters of berths with a depth of 10 M, has accomplished intricate repair jobs on a variety of Naval Ships including Submarines, Merchant Ships and Oil Rigs. 
 
 
 
 HSL Dry Dock and Wet Basin 
 
Submarine Refit 
 
HSL happens to be the only yard in India to have carried out the refits of three classes of submarines (refit of two Egyptian submarines in 1971, refit of F-class (INS Vagli) and EKM class (INS Sindhukirti) submarine). The Medium Repair-cum-Modernisation of Russian made INS Sindhukirti, was successfully completed and handed over to the Navy on 26 Jun 2015. This has earned many accolades for the shipyard. 
 
During the refit, nearly 100 Km of cabling and 30 Km of high pressure piping was renewed, thereby making this the most advanced platform ever to be undertaken in an Indian yard proving the Yard’s capability to take up orders to construct generation next Greenfield submarines. Incidentally, this was the only instance where retrofitting of missile system in an existing submarine was undertaken in the country. The submarine achieved RPM of 350 during its very first sea sortie for Full Power Trials, thus certifying the quality of work by the yard.
 
Considering the expertise gained in MR of INS Sindhukirti, HSL has been awarded for Normal Refit of INS Sindhuvir, a Kilo class submarine of the Indian Navy at a cost of Rs 500 Cr. For this project, HSL has signed a contract with SC Zvyozdochka shipyard, Russia on 28 Mar 17 for technical support during NR of INS Sindhuvir at HSL. Refit of the submarine commenced in July 2017 and will continue for a period of 27 months. HSL is geared up to complete this project within the stipulated timelines.
 
  INS Sindhuvir at HSL Dry 
 
 
 INS Sindhukirti sailing after undergoing medium refit at HSL 
 
 
 INS Sindhukirti at HSL Building Dock 
 
Design Resources
 
HSL has a well-equipped Design & Drawing Office, which in the past has developed in-house design for a number of vessels. HSL’s design department has been recognized as in-house R&D unit by Department of Scientific & Industrial Research (DSIR), Ministry of Science & Technology. 
 
 HSL's design capability embraces wide spectrum of general and special purpose vessels. In anticipation of the requirement of state-of-the-art resources for taking on the complex design support for the assured orders for SOVs and FSS, design office has been upgraded in the recent past with sufficient number of licenses for Aveva Marine as well as for Auto CAD Mechanical under modernisation program. With these tools, the design office has mastered the art of producing composite drawings which would enable adoption of integrated modular construction methodology with a high level of pre-outfitting of blocks-modules.
 
Technology Up-gradation
 
HSL is also venturing into the latest technological up gradations available in the market, aiming for a seamless process flow of information and to bring in best practices adopted in other Indian and foreign shipyards. HSL has partnered with M/s Tech Mahindra Ltd as System Integrator (SI) to implement SAP ERP and integrate with PLM design software products. This would be first time in any Indian Shipyard that PLM Design software would be integrated with any ERP software. In fact not many shipyards in the world have this feature included in the ERP. The system would be implemented by mid-2018.
 
Performance
 
The shipyard was in losses over the last few decades till FY 2014-15. After the current incumbent C&MD RAdm LV SaratBabu, IN (Retd.) taken over charge of the Shipyard in Jan 16, the yard has been turnaround by posting profits in last three consecutive financial year i.e., FY 2015-16, 2016-17 and 2017-18 despite the prevailing gloom in the shipbuilding business scenario, first time in the last 40 years. With the best productivity measures and improved morale, an operating profit of Rs 69.80 Cr was achieved in fiscal 2017-18 as against Rs 37.49 Cr of previous year by recording an increase of 86% year on year. HSL has achieved profit after tax (PAT) of Rs 20.99 Cr in Fy 2017-18 as against Profit of Rs 53.77 Cr reported in Fy 2016-17. The dip in the net profit over the last year is attributable to the creation of provision of Rs 51.35 Cr towards Essar Oil Claim which was an exceptional item. This is indicative of the operational efficiency the company has achieved, over last year despite many legacy liability issues. The operating profit this year has been the highest since inception of the company. 
 
 During the year 2017-18, HSL achieved a total income of Rs 651.67 Cr and a Value of Production of Rs 644.78 Cr. Value of Production have shown an increase of 3% year on year basis and that too with a very low order book position. The value of the production has been the highest since inception of the company and the total income has been the third best since inception of the company. The accumulated losses and negative net worth of the company has also been reduced to Rs 1231.51 Cr and Rs. 619.43 Cr respectively. The operational indices of the company have also improved significantly. These indices are now comparable to other profit making domestic shipyards and some indices are even better by giving due consideration to the order book position of the company.
 
 
Execution of shipbuilding & ship repair Projects 
 
In the shipbuilding front, the flagship project of the company i.e. VC 11184 has been progressing satisfactorily. The last of the five Inshore Patrol Vessels has completed sea trials and the vessel has been delivered in May 2018.
 
 The yard created a history by simultaneous floating of six Ten Ton Bollard Pull Tugs on 20 Sep 18, being constructed for Indian Navy HSL is putting in all efforts to deliver all six tugs by the end of current fiscal.
 
 50T Bollard Pull Tug, Krittika, yard 11174, built by HSL was handed over to Deputy Chairman of Deendayal Port Trust on 20 Sep 18 at Kandla, Gujarat in the presence of other Port officials and HSL officials. This is the second vessel being delivered in this financial year by the shipyard. The Tug has been designed and built by HSL and is capable of developing a 50 Ton Bollard Pull and can achieve speed of 12 Knots. The Tug is equipped with state of the art external firefighting equipment. During trials, she has proved her ability to face rough seas. The tug in its maiden voyage to Kandla has undertaken a nonstop 2200 nautical mile run.
 
 In the ship repair front, the yard has undertaken repair of 10 vessels which includes completion of major refits of INS Kesari and INS Magar. The yard has received accolades for its quality work from Indian Navy, the company’s prime customer.
 
 In the submarine division, the normal refit of INS Sindhuvir has commenced with effect from 10 Aug 2017 and the project is on track satisfactorily.
 
 The yard has also implemented many initiatives to improve morale, motivation, welfare and discipline of employees. The company has instituted strict control measures with a view to rationalize on the expenditure to the maximum extent feasible. The saved amount is being spent well on renovating the shipyard and the employees' colony. HSL renovated 20 numbers (C, F & G type) quarters for the officers, 24 Nos. (B1 & B2 type) quarters for the staff and 34 Nos (R & D type) quarters for staff & workmen. 
 
Order Book Position & Future Business avenues
 
The yard has aggressively participated in the competitive bidding process and has emerged as lowest bidder and won two major shipbuilding orders worth Rs 2250 Cr i.e. 02 Nos Diving Support Vessels and 04 Nos 50 Ton Bollard Pull Tugs for Indian Navy. Towards this, HSL inks contract worth above Rs 2000 Crores with Ministry of Defence (Indian Navy) for construction of 02 Diving Support Vessels. The contract signing ceremony was held at MoD, Delhi on 20 Sep 18 with representatives from MoD, Navy and HSL. 
 
With regard to nominated high value shipbuilding projects i.e. five nos Fleet Support Ships whose AoN cost is about Rs 9000 Cr, the yard has floated a global tender for finalization of design collaborator for the project. Upon finalization of design collaborator and other terms & conditions, contract will be signed with Indian Navy. 
 
 The shipyard is in the process of finalization of RFP for Design Collaborator and the global tender for the finalization of design collaborator for construction of 02 Nos Special Operation Vessels.
 
The Shipyard has submitted its bid for the MRLC of 3rd Sindhugosh Class submarine ‘INS Sindhuratna’. Technical evaluation of the bid has been concluded and further course of action is awaited from the customer.  
 
Solar Power System
 
Achieving 100 GW solar power is part of India’s commitment before the United Nations Framework Convention on Climate Change (UNFCCC). Accordingly, the Government has set a target for installation of 40 GW power grid connected solar rooftop systems in the country by 2022. To fulfil the commitment of Government of India, Hindustan Shipyard Ltd has taken a step by installing 2 MWp rooftop solar plant. The solar power plant was inaugurated by Shri Pravin Kumar, IAS, Collector & District Magistrate, Shri Mahesh Chandra Laddha, IPS, Commissioner of Police, Shri M Hari Narayanan, IAS, Commissioner, GVMC in the presence of Shri S K Mishra, Director, SECI, Shri UmakantShende, COO, CleanMax Solar and Media personnel.
 
The entire project including design, supply, erection, testing, commissioning including warranty, operation & maintenance is being undertaken by M/s Clean Max without any operation and capital expenditure from the yard side. HSL is required to buy the generated power from M/s Clean Max at a cost of Rs 3.939/kWh as against Rs 5.60/kWh grid power of APEPDCL. The solar plant, now the largest rooftop solar plant in Andhra Pradesh, will help the shipyard to save Rs 48 lakh per annum in energy costs, while also reducing its environmental footprint. This rooftop solar plant will meet about 35% of Shipyard’s total power consumption, with 28 lakh units of clean solar energy being generated annually by the plant. Hindustan Shipyard Ltd, built in 1941 as India’s first Greenfield defense shipyard, is an early adopter of rooftop solar, moving towards a sustainable future.
 
Seven buildings in the Hindustan Shipyard Limited premises have been equipped with solar panels, including the iconic blue sheds where naval ships & submarines are built and repaired. Overall the panels will result in the abatement of 2300 tons of C02 per annum, for the next 25 years. This abatement is equivalent to planting 58,000 full grown trees. While there is no investment on the part of HSL, as per the agreement arrived at with Clean Max, the yard has to buy power from it for 25 years. The project was executed under the Solar Energy Corporation of India (SECI) Rooftop Solar Scheme. 
 
Morale, Motivation & Team work 
 
There is no discrimination in HSL with regard to caste, creed, minority status, gender, religion etc., and the efforts are synergized with unanimity and team work towards improvement of productivity and operational efficiency. This has resulted in improving Rank, Revenue and Reputation of the Shipyard.  HSL prioritizes its efforts and, endeavours to comply with all Govt. stipulations, with regard to reservation of posts for SC/ST/OBC and as on now the compliance is more than the Govt. norms. 
 
 Product Profile
 
Since inception, the Shipyard has built 181 ships including 11 wellhead platforms and repaired 1965 vessels till date. The product profile includes cargo liners, bulk carriers, passenger vessels, offshore platform vessels, inshore platform vessels, survey vessel, mooring Vessel, HSD oiler, landing ship tanks, training Ship, tugs, supply vessels, drill ship, dredgers, oil recovery and pollution control vessel, research vessel, floating cranes, barges etc. for varied number of customers like Indian Navy, Indian Coast Guard, ONGC, GML, Port trusts, DCI, SCI, Andaman & Nicobar administration etc. 
 
Quality and Certification 
 
HSL is the first yard in the country to obtain ISO 9001-2000 accreditation. The yard is ISO 9001 - 2015 certified from IRQS for undertaking “Design and Construction of all categories of Defence Ships/ Crafts/Boats, Commercial Vessels upto 80,000 DWT and Repairs of all categories of Ships/ Crafts/ Boats/ Rigs and allied services”. 
 
The Quality Division of HSL has developed comprehensive ‘Quality Management System’ which ensured successful completion of the MR of INS Sindhuvir conforming to stringent quality norms stipulated in Russian Repair Documents.
 
Skill Development 
 
The focuses well on skill development. 78 ITI apprentice trainees, 47 engineering graduates and 21 Diploma Trainees were trained in their respective streams during the year 2017-18. On the job training and project work was also extended to 1960 students of various engineering colleges, management institutions and marine institutes. HSL also extends Industrial Training to the students of various professional institutes in Cost Accountancy and Company Secretary Training
 
Support to Ancillary Industries 
 
In many respects, HSL has been the Mother Yard by providing the lead in shipbuilding, Ship Repairs including off-Shore/ on-Shore platforms and rigs and in Submarine Repairs. HSL has also been a Mother yard for training large number of young engineers and workers. HSL has thus achieved many significant milestones earning a name for itself as a ship builder of repute in India and abroad. 
 
Apart from providing a good many jobs to locals, the Shipyard has been instrumental in the rise of a large number of ancillary industries and steel fabrication yards in and around the city and reaching as far as Vizianagaram and Kakinada.
 
Corporate Social Responsibility
 
Shipyard is exempted from earmarking dedicated funds for CSR due to its financial condition. However during the Year 2017-18, CSR related activities ie., Free Medical Camp, Blood donation camp, renovation of Schools & Colleges have been undertaken by Shipyard. Apart from these, free electricity & water was provided to six educational institutions operated in HSL colony for the benefit of the students of surrounding areas. 
 
Swatch Bharat campaign
 
HSL fully adheres to the Hon’ble Prime Minister’s Nationwide Swachh Bharat Campaign with the awareness and participation by all employees and residents of nearby area with an aim to make it a mass awareness movement and bring about a lasting change in the mindset. Several cleanliness drives were organised during the year to sensitise our employees, residents of the township and nearby area. Swachh Bharat activities were organised twice during the year i.e. from 24 Aug 18 to 07 Sep 18 and 15 Sep 2018 to 02 Oct 2018. Various activities were conducted to spread the message for a clean & green life under SwatchataPakhwada and Swtachta Hi Sewa programme. 
 
Employees of the Hindustan Shipyard Ltd assembled at the ‘Gandhi Circle’ inside the yard and paid their tributes to the Mahatma on 02 Oct 18. RAdm LV SaratBabu, IN, (Retd), C&MD emphasised on Gandhian ideas and principles while appreciating the employees for their contributions towards the success of the ‘Swachhata hi seva’ - 2018 campaign.
 
 
Awards
 
HSL was also awarded RM’s Awards for excellence in the category of Innovation and SODET Awards in the category of Technology Development & Technology innovation. In addition, HSL has been awarded “VrukshaMitra Award (Environment)” by VMKSR Memorial Charitable Trust for the year 2017-18 for Visakhapatnam region in the category of “Organisation Scholar”. HSL has also received Certificate of appreciation of its commitment towards investing in “Learning & Development” to achieve business excellence, during Annual BML Munjal Awards function.