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Published: October 31, 2025
Updated: October 31, 2025

Swan Defence & Heavy Industries

Going all out with maritime MoUs

Swan Defence and Heavy Industries Limited (SDHI), formerly known as Reliance Naval and Engineering Limited, is a leading Indian shipbuilding and heavy fabrication company. Strategically located on the west coast and spread over 600+ acres of land, the shipyard operates the country’s largest dry dock (662m x 65m) and has a fabrication capacity of 144,000 mtpa. It is located in a SEZ, with a dedicated 2.41 mn sq ft of covered shed, allowing fabrication all the year round. The company claims to have 30% of the country’s shipbuilding capacity.

Expressing his enthusiasm, Nikhil V. Merchant, Chairman & M.D. said “Over the past year, we have made significant strides in restoring operations at shipyard following its acquisition through the NCLT. Through disciplined capital deployment, infrastructure, modernisation and the induction of a highly experienced leadership team, we have transitioned the facility into a fully functional, future-ready complex aligned with the nation’s evolving maritime and defence objectives.

Adding further, he said “During FY25, we recommenced shipyard operations and completed multiple refit projects for the Indian coastal guard ahead of schedule, showcasing our readiness, execution capabilities and commitment to quality and delivery timelines. Our collaborations with leading domestic and international shipbuilding firms would expand our technical competences and market access while enabling the adoption of advanced shipbuilding practices.”

SDHI and Varex Imaging Corporation (VIC) have signed an agreement to manufacture cargo and vehicle inspection systems in India. VIC, based in Salt Lake City in the US, is a global leader in linear accelerators and imaging technology, and is known for its innovative and dependable solutions.

As part of the collaboration, SDHI will exclusively manufacture Varex’s high-energy imaging systems at its facility in Pipavav, Gujarat. These systems are designed to inspect all types of cargo at both land and sea ports. This strategic partnership will help meet the growing demand for advanced inspection systems among security agencies across India. Additionally, it supports the ‘Make in India’ initiative by promoting indigenous manufacturing and enabling access to world-class security imaging solutions.

MoU with Sagarmala Finance Corp

SDHI has announced a strategic MoU with Sagarmala Finance Corporation Limited (SMFCL), India’s maritimefocused NBFC. Under the partnership, SDHI and SMFCL will jointly explore projects, including new builds, ship repairs and ancillary maritime infrastructure, under the Maritime focused Equity Fund (MfEF).

The MoU covers four strategic areas across technical & commercial evaluation, financing, project execution, and ecosystem development to advance shipbuilding in line with the Maritime India Vision 2030, PM Gati Shakti, and India’s goal of becoming a global shipbuilding leader.

SDHI and SMFCL will conduct feasibility studies covering project design, yard capacity, vessel types, and technology integration. The partnership will drive adoption of advanced, sustainable shipbuilding technologies -- such as green fuels, energy-efficient designs, and digital shipyards -- while promoting localisation of supply chains, vendor development, and robust backward linkages to strengthen India’s maritime manufacturing ecosystem. The partners will develop a financing plan covering capital structure, equity, debt, and credit enhancements, while identifying co-financiers such as muiltilateral institutions, government agencies, and private investors.

SDHI and SMFCL will also explore opportunities to boost vessel exports and engage in international shipbuilding value chains, while also developing a collaborative framework for industry-academia partnerships, skill development, and capacity building for the maritime workforce.

MoU with Gujarat Maritime Board

The company has signed a landmark MoU with the Gujarat Maritime Board (GMB) for a strategic investment of Rs 4,250 crore. The partnership is set to modernize shipyard infrastructure, strengthen domestic supply chains and build a sustainable talent pipeline for India’s maritime industry. This significant investment is a testament to SDHI’s commitment to India’s maritime ambition, which will be deployed across three key projects at the shipyard in Pipavav port.

The partnership will infuse Rs 3,500 crore for capacity expansion at the shipyard, including slipway, jetties, additional cranes, block fabrication, and dredging. This will enhance the shipyard’s capacity to meet global as well as Indian shipbuilding demands. However, it is not yet clear in which ratio and format the partners will make investments.

A Rs 200-crore world-class Centre of Excellence (CoE) for maritime skilling will come up at the shipyard to deliver a certified, industry-ready workforce of over 1,000 youth annually. The CoE will be equipped with state-of-the-art smart classrooms, specialized labs, advanced simulators, and design software systems to enable innovation in ship design, shipbuilding, and retrofits.

SDHI will also develop a 200-acre maritime cluster within the shipyard at an investment of Rs 550 crore. The cluster will serve as a maritime hub for ancillary industries, suppliers, and support services to foster innovation, improve efficiency, boost local economy, and strengthen global trade.

Commenting on this partnership, Rear Admiral Vipin Kumar Saxena (retd), CEO of the company, said “We are honoured to partner with the GMB on this landmark collaboration. By investing in infrastructure, capacity, and skill development we will add world-class capabilities that accelerate India’s shipbuilding ecosystem. SDHI is laying the foundation for a new era of growth and cementing our nation’s place on the global maritime map for decades to come.”

MoU with Royal IHC

SDHD has signed an exclusive MoU with European offshore oil & gas vessel leader Royal IHC. The partners will combine their expertise, infrastructure, and geographical advantages to design, build, and retrofit offshore oil and gas and other types of vessels. The MoU was signed along with Alar Infrastructure, the Indian representative of Royal IHC. The collaboration will explore opportunities to build offshore construction vessels, pipe- laying vessels, and multipurpose offshore support Vessels at SDHl’s shipyard in Pipavav Port.

The tie-up brings together the world’s leading offshore oil and gas vessel company and India’s largest shipyard to provide integrated, cost-competitive solutions for offshore and other specialized vessels. It will leverage IHC’s expertise in design, engineering, equipment, and project management, alongside SDHl’s advanced shipbuilding infrastructure, skilled workforce, and resources. The partnership will strengthen indigenous capabilities and position India as a competitive player in the global shipbuilding industry

Commenting on the MoU signing, Vivek Merchant, Director, SDHI, said “We are delighted to partner with Royal IHC at a time when the industry is witnessing a growing demand for offshore vessels capable of serving both oil & gas and renewable energy markets. This collaboration positions us to address these emerging opportunities with worldclass capabilities and competitive solutions.”

MoU with Samsung Heavy Industries

SDHI has signed a strategic MoU with Samsung Heavy Industries, one of the world’s leading shipbuilders in specialized and complex vessels. Both partners will jointly explore commercial shipbuilding and heavy engineering projects across domestic and international markets. On the shipbuilding collaborations, the projects will encompass a wide range of commercial vessels, including tankers, gas carriers, container ships, and other specialized vessels.

This strategic alignment between the two industry players comes at a pivotal moment in India’s maritime growth trajectory, as the nation intensifies efforts to position itself as a global hub for shipbuilding, supported by favourable government policies, financial incentives and advanced infrastructure.

Commenting on the partnership, Rear Admiral Saxena (retd) said, “We are excited to partner with Samsung Heavy Industries, a global leader in shipbuilding. Our shared vision is to deliver enhanced value to customers and shape the future of shipbuilding through advanced technologies and strategic cooperation. We look forward to exploring new opportunities and strengthening this partnership in due course.” The MoU fosters collaboration for next-generation vessel designs, green technologies, and digital shipbuilding methodologies. The partnership will focus on optimizing project execution through value engineering in production design and localizing material sourcing to reduce costs and enhance operational efficiency.

Teaming Agreement with MDL

In another important, Mazagon Dock Shipbuilders Limited (MDL), India’s premier defence shipyard and a Navratna company under the Ministry of Defence, has signed an exclusive Teaming Agreement (TA) with SDHI for collaboration in the design and construction of Landing Platform Docks (LPDs) for the Indian Navy. The Defence Acquisition Council has very recently accorded approval for the acquisition of LPDs -- a critical capability addition for the Indian Navy to project power, undertake amphibious operations, and deliver humanitarian assistance and disaster relief (HADR) missions.

Under this TA, MDL will bring its vast experience in ship design, project management, and system integration, while SDHI will provide its world-class shipbuilding infrastructure -- the largest in the country -- for the construction of the vessels. The partnership is designed to combine the technical, financial and operational strengths of both shipyards to deliver an optimal solution for the Indian Navy. This public-private partnership aims to reduce build periods, enhance quality, and achieve cost efficiency in the construction of these complex platforms. Expressing his pleasure, Mr Merchant said, “We are excited to partner with MDL for this prestigious programme. Together, we aim to deliver technologically advanced, globally competitive platforms that will strengthen the Indian Navy’s blue-water capabilities. This TA reinforces our commitment to ‘Atmanirbhar Bharat’ and to develop India as a global shipbuilding hub.”

Capt Jagmohan, Chairman and MD, MDL, said, “This partnership marks a new chapter in Indian shipbuilding. The LPDs are vital to India’s maritime power projection capability, and through this collaboration we intend to deliver world-class ships built in India for India. By combining MDL’s design and integration expertise with SDHI’s modern infrastructure, we are confident of setting new benchmarks in quality, efficiency and timeliness -- a true model of public–private synergy in the defence sector.”

PROMOTER STAKE

SDHI is a step-down subsidiary of Swan Corp, a listed entity having diversified interests in defence, energy and real estate. The promoter group company, Hazel Infra Ltd, holds a 94.91% stake in the company, comprising 5 crore equity shares. The public holding of 5.09% is divided among 96,585 shareholders, wherein Vistra ITCL India Ltd is the only single largest shareholder with a 1% stake. Most of the others are from the erstwhile RNEL period, who have been allotted one share of Rs 10 each against their previous holding of 275 shares. During the course of restructuring, 73.76 crore shares of RNEL got cancelled and extinguished as part of the resolution process. The current equity capital stands at Rs 52.68 crore with a book value of Rs 56.11 crore.

As such, the company’s day-to-day business operations were not functional during FY25. Hence, the financials are not worth writing about. However, it appears that due to the recently entered MoUs, we might witness operational momentum from January 2026 onwards. Secondly, the company will also need funds going forward to meet its capex, which could be met with through a preferential issue to non-promoter entities, which would also simultaneously help the promoters in bringing down their holding from the present 94.91% to maintain a minimum 25% public float in line with the SEBI listing regulations.

The recently concluded tie-ups and MoUs certainly indicate that the management has started moving very aggressively in order to derive benefits from enormous new opportunities coming their way. Moreover, the funds-mobilising capacity of the promoters also looks quite impressive. One shouldn’t be surprised if they seriously pursue the acquisition of a company like Bharat Defence and Infrastructure (formerly Bharati Shipyard), which is now undergoing a corporate insolvency and liquidation process at NCLT.

The fact remains that the outlook for the Indian shipbuilding industry is highly promising. The industry is expected to grow exponentially, with a potential 60% compounded annual growth rate (CAGR) to reach from $ 1.12 billion in 2024 to over $ 8 billion by 2033. The government’s initiatives, like the shipbuilding financial assistance policy and creation of new shipbuilding clusters, provide financial incentives and a level playing field for domestic yards. A paradigm shift in government policy under defence procurement and ‘Make in India’ has undoubtedly brightened industry prospects, which augurs well for an important player like SDHI. Revealing the company’s focus during the FY26, Mr. Merchant said “In current financial year our focus will remain on maximising capacity utilisation and operational efficiency, expanding our shipbuilding order book, advanced automation and digital integration.”

STOCK RELISTED

It’s interesting to know that the company got relisted at Rs 35.99 on NSE and BSE on January 20, 2025 after a hiatus of about one and a half years. Currently, the stock is being traded at Rs 812 and the market capitalisation is Rs 4,278 crore. However, the volumes are hardly anything and almost every time the stock closes in the upper circuit limit. As such, there is meagre floating stock because 94.91% is with the promoters. This is one of the reasons why, despite not having anything worth writing on its financials, the stock continuously moves up and registered a whopping appreciation of 2,155% in just over nine months. Being in a capital-intensive industry with a longer gestation period, performance and financials will take time to show in the case of SDHI. However, the induction of any foreign alliance partner of high repute by issuing a strategic equity stake could be a game changer for the stock.