From Hooghly to high seas: Boost for Kolkata PSU amid defence boom

Kolkata-based Garden Reach Shipbuilders & Engineers Ltd (GRSE) stands on the cusp of a defining institutional upgrade. ET has reported the Department of Public Enterprises has cleared a proposal to grant Navratna status to the state-run defence shipyard. The proposal, moved last month by the Department of Defence Production under the defence ministry, was examined by an inter-ministerial committee before being cleared by the DPE. “The proposal has now been cleared from our end and will be placed before an apex committee for final approval,” a senior official told ET, requesting anonymity.

Also Read: Garden Reach Shipbuilders set for Navratna status as DPE clears proposal, final nod awaited

If approved, GRSE will join the league of 27 Navratna central public sector enterprises (CPSEs). The status grants enhanced financial and operational autonomy, allowing companies to undertake larger investments, form joint ventures and expand operations without prior government approval. The most recent elevation was that of Numaligarh Refinery Ltd in December.


For GRSE, the elevation would not merely be administrative. It would mark the formal recognition of a shipyard whose evolution mirrors India’s maritime ambitions over more than a century.

From Hooghly workshop to strategic shipyard

GRSE’s origins date back to 1884, when a modest workshop was set up on the banks of the Hooghly River to repair vessels belonging to the River Steam Navigation Company. That workshop, located at what is now GRSE’s Main Works, formed the nucleus of the enterprise. Its deeper roots go to 1862, when Captain J.H. Williamson founded the New Rivers Company to transport goods and passengers along the Ganges, later expanding into Assam to support the tea trade. After Williamson’s departure in 1865, the company became the River Steamer Company. The Hooghly workshop was established to maintain its vessels, an industrial seed that would grow into a strategic defence asset.

The Government of India took over the company in 1960, setting it firmly on the path toward state-owned warship production.

Forged in war, strengthened in Independence

During the Second World War (1939–45), the yard proved its industrial capability by constructing, converting and repairing a large number of naval and merchant vessels. Reportedly, over 4,000 vessels were repaired during the war years alone.

Independent India’s naval aspirations gave GRSE a renewed mission. In 1961, it built INS Ajay, recognised as the first indigenous warship for the Indian Navy, a landmark in India’s journey towards maritime self-reliance.

Over the decades, GRSE expanded its capabilities across increasingly complex platforms, eventually emerging as one of India’s premier defence shipbuilders.

Scale, capability and export breakthroughs

Today, GRSE has built over 800 platforms, including 115 warships for the Indian Navy, the Indian Coast Guard and friendly foreign nations, the highest number delivered by any Indian shipyard.

Its portfolio spans frigates, corvettes, fleet tankers, landing ship tanks, landing craft utility vessels, survey vessels, offshore patrol vessels and fast attack craft. In 2015, it achieved a major milestone when CGS Barracuda, an offshore patrol vessel built by GRSE, was commissioned into the Mauritius Coast Guard at Port Louis by Prime Minister Narendra Modi and Mauritian Prime Minister Sir Anerood Jugnauth -- marking India’s first export of a warship.

Beyond shipbuilding and repair, GRSE has diversified into prefabricated steel bridges, deck machinery, marine diesel engine overhaul and the manufacture of 30mm naval surface guns.

Uniquely, it operates four distinct shipyards and has modernised infrastructure capable of constructing 28 ships concurrently.

Into the pipeline

GRSE’s current order pipeline reflects both scale and strategic depth. The shipyard is executing the prestigious P-17A advanced stealth frigate programme, building high-end multi-role platforms for blue-water operations. It is also constructing eight Anti-Submarine Warfare Shallow Water Craft, which is critical for coastal defence, and four Next-Generation Offshore Patrol Vessels for maritime security roles. Multiple large survey vessels are under construction to strengthen India’s hydrographic capabilities. Last year, GRSE won a Rs 25,000-crore contract to build five Next-Generation Corvettes for the Indian Navy, a programme expected to significantly expand its frontline combat portfolio.

In addition, GRSE is building specialised scientific and research vessels, including coastal research ships and India’s first indigenous Polar Research Vessel, reflecting a move into high-technology, dual-use maritime platforms.

The company’s export and collaboration footprint is widening. It has secured refit and upgrade contracts from friendly foreign governments, including Mauritius, and signed technology partnerships with global marine propulsion firms to enhance onboard systems integration. It has also entered into multiple MoUs in areas such as green shipbuilding, hybrid propulsion and port infrastructure, positioning itself for opportunities beyond pure defence.

Financial strength and market momentum

The operational expansion is mirrored in financial performance. GRSE’s total income grew 39% in FY25 to Rs 5,411 crore. In the December quarter of the current financial year, total income surged 46% year-on-year to Rs 1,958 crore.

Backed by a strong order book estimated in the Rs 22,000–23,000 crore range, the company’s execution visibility remains robust. Rising defence capital expenditure and steady naval procurement cycles provide medium-term revenue clarity.

Investors have rewarded this trajectory. GRSE shares have risen 83% in the past 12 months and 1,146% over five years, reflecting growing market confidence in its strategic positioning.

Riding the 200-ship Navy vision

GRSE’s future prospects are closely aligned with India’s expanding maritime doctrine. The Indian Navy’s “200-ship vision” by 2035, coupled with rising defence capital allocation and the policy thrust on Atmanirbhar Bharat, provides powerful long-term tailwinds.

Navratna status, if formally approved, would grant GRSE greater autonomy to invest in new technologies, pursue strategic partnerships and accelerate capacity expansion without bureaucratic delays. This flexibility could prove decisive as India scales up indigenous shipbuilding to reduce import dependence and capture export markets.

From a 19th-century river workshop to a modern defence shipyard capable of building nearly 30 vessels simultaneously, GRSE’s trajectory reflects the arc of India’s maritime rise. The anticipated Navratna elevation would not just be a corporate milestone but would symbolise the coming of age of one of India’s most consequential shipbuilders.