Thyssenkrupp Marine Systems (TKMS), a leading maritime firm in Germany, is actively vying for a significant contract to construct six diesel-electric submarines for the Indian Navy. This initiative comes amid a rising demand for naval manufacturing spurred by recent global conflicts, which positions India as a potential global hub for submarine and warship construction at competitive prices.
TKMS anticipates that the local manufacturing costs in India could be as much as 50% lower compared to other international locations, making this venture particularly attractive. The company’s vision includes the establishment of a collaborative warship construction center in partnership with Mazagaon Dockyards Limited (MDL), a collaboration that TKMS believes could lead to a comprehensive hub for technology and manufacturing capable of generating further orders and employment opportunities.
The competition for the Indian Navy’s conventional submarine contract has intensified, with TKMS partnering with MDL facing off against the L&T-Navantia alliance, the latter being a collaboration with the Spanish shipbuilding firm. The decision from the technical oversight committee, a crucial step toward selecting the contractor, is expected by the end of January.
TKMS CEO Oliver Burkhard expressed optimism about the future of the partnership, highlighting that this endeavor is not merely about the P75I submarine contract but also about creating a broader technological collaboration with potential for significant job creation. He emphasized the strategic importance of this partnership in enabling access to a larger market, suggesting that the market could potentially expand two to threefold in the next decade.
Burkhard also pointed out that Europe’s current production capabilities are strained due to a surge in demand for military systems following the ongoing Russia-Ukraine conflict. He identified Southeast Asia and South America as promising export markets for German technology. By moving manufacturing to India, TKMS can leverage the country’s capabilities while mitigating the impact of Germany’s high engineering labor costs. The company has communicated its ambitions for a full-fledged warship construction hub in India through multiple channels, reinforcing its commitment to establishing a lasting partnership in this strategic sector.
