The Daily Brief A cruise through the shipbuilding industry
Oct 1, 2025
Explore the fascinating world of shipbuilding, which is vital for global trade. Discover how different types of ships are made and the factors driving their demand. Dive into why East Asia has dominated this industry and the barriers facing India's shipbuilding potential. Learn about a recent SEBI investigation involving hidden subsidiaries and the significant impact on financial accountability. Stay tuned for updates on corporate news, including developments from prominent companies.
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Shipbuilding Is A Lifecycle Business
- Shipbuilding is three businesses in one: building, repair/maintenance, and recycling across a ship's lifecycle.
- Demand ties closely to global trade cycles and energy flows, shaping which ship types are ordered.
East Asia Dominates Shipbuilding
- The industry is highly concentrated: China, South Korea and Japan build over 90% of ships.
- State policy, patient capital and scale explain how China leapfrogged to the top from third place.
Shipyards Work Like Heavy EPC Firms
- Shipyards operate like EPC contractors: design, block fabrication, pre-fitting, assembly, launch and trials.
- Higher pre-fitting rates (80% in Korea/Japan) speed builds and cut costs compared with India.
