NEW DELHI: Hindustan Shipyard Ltd. (HSL), once burdened by chronic losses and operational inefficiencies, has engineered an impressive turnaround driven by a strategic initiative dubbed the “Magic of Five.”
After decades of financial turmoil, including an Rs 84 crore ($10 million) pre-tax loss in fiscal 2020-21, the historic shipyard has charted a striking comeback, reporting record revenues of Rs 1,413 crore ($170 million) in fiscal 2023-24—nearly tripling from Rs 478 crore three years prior. At the helm of this transformation is Chairman and Managing Director Commodore Hemant Khatri, whose targeted reforms have set HSL firmly on course to convert its net worth from negative to positive by fiscal 2024-25, an unprecedented achievement in its 84-year history and critical step towards attaining India’s prestigious Mini Ratna status.
The “Magic of Five” strategy, conceived to revitalise every operational facet, comprises systematic reforms in five crucial areas: operational excellence, financial management, digital transformation, human resource development, and corporate communications.
Operationally, HSL adopted round-the-clock production shifts and implemented the “Mega Block” concept—constructing large vessel sections with significant pre-launch outfitting—drastically improving productivity and project timelines. Additionally, strategic outsourcing and deploying company executives directly at suppliers’ facilities to oversee quality have streamlined operations and significantly reduced costs.
Digital transformation has equally propelled efficiency gains. HSL implemented SAP’s S4/HANA ERP, dramatically improving real-time operational visibility. In a collaboration with the Indian Institute of Technology Tirupati, the yard introduced AI-driven weld defect analysis and robotic welding technologies, boosting quality standards and productivity. Advanced cybersecurity measures, such as innovative honeypot technology, were also introduced to safeguard digital assets.
Financial discipline strengthened through real-time project
In parallel, HSL significantly strengthened its MSME ecosystem—expanding the vendor base from 130 suppliers in fiscal 2020 to 564 suppliers in fiscal 2024, and increasing procurement via India’s Government e-Marketplace platform fromRs0.016 crore to Rs 530 crore, greatly benefiting local businesses.
Looking ahead, HSL continues ambitious infrastructure modernisation—adding a 300-tonne Goliath crane, a 4.7 MW load bank (India’s largest), and extensive slipway enhancements—positioning itself firmly at the forefront of India’s shipbuilding industry.
Hindustan Shipyard’s revival spotlights India’s larger maritime ambitions, showcasing resilience through decisive reforms and strategic innovation, transforming it into a major force in global shipbuilding.