3 Stocks to Benefit: India’s Maritime MRO market to grow to $4 Billion by 2031

Synopsis: India’s maritime MRO sector is set for strong growth, driven by self-reliance initiatives, expanding shipyards, and rising repair demand. This shift boosts efficiency, reduces foreign dependence, and positions Cochin Shipyard, Swan Defence & Heavy Industries, and Sadhav Shipping to benefit from increasing industry momentum.

India’s maritime Maintenance, Repair, and Overhaul (MRO) sector presents a significant growth opportunity, driven by government initiatives under Prime Minister Narendra Modi’s vision for self-reliance in shipping. 

The market, valued at around $2 billion in 2024, is projected to reach $4 billion by 2031, growing at a 10-12% CAGR, fueled by fleet expansion, policy reforms, and infrastructure upgrades like new shipyards. This positions India to capture a larger share of global ship repair demand, reducing foreign exchange outflows and creating jobs, with facilities increasing from 96 in 2014 to 154 by mid-2025.

The expansion of MRO capabilities in India can significantly enhance the efficiency and cost structure of the shipping industry. With local maintenance and repair facilities, shipping companies can reduce expenses that were previously incurred by relying on overseas services. Shorter travel distances to domestic facilities also mean quicker turnaround times, enabling vessels to resume operations faster and improving overall fleet productivity.

Beyond operational gains, a strong maritime MRO ecosystem can support broad industry development. It has the potential to generate skilled employment, foster specialized technical expertise, and reduce the outflow of foreign exchange by minimizing dependence on international repair hubs. Collectively, these factors can strengthen India’s competitiveness as a global maritime centre.

Stocks that can benefit

Cochin Shipyard Ltd

Cochin Shipyard is one of India’s leading shipbuilding and repair facilities. It can build vessels of up to 110,000 DWT and undertake repairs for ships as large as 125,000 DWT, making it the nation’s top yard for handling its largest maritime vessels. With market capitalization of Rs. 42,563 cr, the shares of Cochin Shipyard Ltd are closed at Rs. 1,617.90 per share, from its previous close of Rs. 1,617.60 per share.

Swan Defence and Heavy Industries Ltd

Swan Defence builds, repairs, and refits ships, rigs, and heavy engineering projects. It operates one of India’s largest shipyards, with a 662×65 m dry dock (4 lakh DWT) that can handle multiple vessels at once.  With market capitalization of Rs. 6,636 cr, the shares of Swan Defence and Heavy Industries Ltd are closed at Rs. 1,259.70 per share, from its previous close of Rs. 1,199.75 per share.

Sadhav Shipping Ltd

Sadhav Shipping is a smaller but established player operating barges, tugs, and ship management services. A long-time service provider to ONGC, it works in coastal and offshore logistics, port security, and vessel management. With market capitalization of Rs. 143 cr, the shares of Sadhav Shipping Ltd are closed at Rs. 100 per share, from its previous close of Rs. 99.45 per share.

Written by Manideep Appana

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