HSL May Achieve Mini Ratna With Terrific Results In Tow

Visakhapatnam: Hindustan Shipyard Ltd (HSL), a premier shipbuilding yard set up in Visakhapatnam in 1941 appears to be heading towards achieving a mini ratna status.

Bagging the high value order to build five Fleet Support Ships (FSS) from the Indian Navy and its impressive performance in ship and submarine repairs and undertaking construction of tugs and other vessels has helped the company tin scripting its success story.

According to sources, HSL as per provisional figures for 2024-25 has earned an income of Rs1586 crore and a profit after tax of Rs166 crore. Once granted mini ratna status, HSL will get greater autonomy on taking decisions on investment up to Rs 500 crore. It will also give a shot in the arm in enhancing its corporate image.

HSL is credited with creating an all-time record by achieving the highest-ever (provisional) revenue of Rs1597 crore last year. Incidentally, in FY24, HSL had registered more than three times increase in revenue over FY 21 when the total revenue was just Rs.478 crore. At that time, the company had posted a loss of Rs.14 crore. The performance during FY24 had proved success due to a multi-pronged approach by boosting the morale of the workforce and the stakeholders in registering an irreversible turnaround from a loss-making company to a vibrant defence public sector undertaking (DPSU) contributing significantly to Atma Nirbhar Bharat.

Many attribute the success story of HSL to the management's 'Magic of Five's strategy which lays thrust on operational excellence, fiscal management, digital transformation, optimal utilisation of manpower and promoting the brand image.

As part of its focus area, the vendor base was increased from 130 to 564 in 2024.

HSL has achieved the stupendous task of increasing its order book from a meagre Rs2,000 crore to over Rs20,000 crore after getting the mega order to build five Fleet Support Ships for the Indian Navy. The net worth despite legacy issues has turned positive brightening its scope to become a mini ratna, shipbuilding industry sources stated.

The Fleet Support Ships with a displacement of 40,000 tonnes will be used to replenish ships on voyage with fuel, water, food, ammunition and other materials to enhance Navy's blue water capabilities and strategic reach. The order for Fleet Support Ships given to give a boost to 'Atmanirbharta' in defence is valued at Rs19,000 crore. The keel for the first Fleet Support Ship was laid on November 14, 2024. To ensure timely delivery, HSL has outsourced the construction of two among five Fleet Support Ships to L&T Shipyard at Kattupalli. The delivery is scheduled to start from mid-2027.