Overview
Market assessment and feasibility study for establishing a modern ship repair facility on India's west coast. The study evaluated demand for repair services from commercial vessels calling at west coast ports, assessed competitive landscape, determined optimal location and facility specifications, and analyzed financial viability of the proposed ship repair yard.
Client
An infrastructure developer planning to invest in ship repair infrastructure on India's west coast. The client sought to understand market demand, competitive dynamics, technical requirements, and investment returns for establishing a commercial ship repair facility serving domestic and international vessels.
Challenge
The ship repair sector faces competition from established yards in Mumbai, Cochin, and international facilities in UAE and Singapore. Key challenges included quantifying addressable market demand from vessels trading to/from India, assessing willingness to use Indian repair yards given availability of nearby international alternatives, determining optimal vessel size range to target, evaluating infrastructure and equipment requirements, and developing competitive pricing strategy.
Methodology
The study analyzed vessel traffic patterns at west coast ports identifying potential repair customers. Surveys of ship owners and managers assessed repair spending, preferred repair locations, and decision criteria. Competitive benchmarking evaluated existing Indian and regional ship repair yards on capabilities, pricing, and turnaround times. Technical assessment determined optimal dry dock specifications to serve target vessel segments. Location evaluation considered proximity to shipping lanes, draft availability, skilled labor, and supporting industries. Financial modeling incorporated capital investment, operating costs, utilization assumptions, and revenue projections.
i-maritime Proposition
i-maritime recommended a ship repair facility in Gujarat with one large dry dock (300m x 50m) capable of handling Aframax tankers and large bulk carriers, plus one smaller dock (150m x 25m) for coastal vessels and small offshore vessels. Target market included routine repairs, survey-related work, and emergency repairs for vessels calling at Gujarat ports. The facility design included modern workshops for hull repairs, machinery overhauls, electrical/electronics work, and painting. Competitive advantages included strategic location on major shipping lanes, lower labor costs versus Singapore/Dubai, and government incentives for maritime infrastructure. Financial projections showed 25-30 dry docking jobs annually at steady state with Rs. 200-300 crore annual revenue. Break-even achievable at 60% capacity utilization with IRR of 11-13% over 20-year project life. Recommended phased development starting with one dry dock and expanding based on market response.