Hindustan Shipyard Limited (HSL) has earned ‘Mini Ratna’ status, marking a stunning turnaround after decades of losses. India’s oldest shipyard now posts profits, modernizes with AI and robotics, and expands naval and repair capacities.
New Delhi: The government has granted granted a ‘Mini Ratna’ status to the state-owned Hindustan Shipyard Limited (HSL), marking a key milestone in the company’s revival after decades of financial strain. The ‘Mini Ratna’ status is an important designation that is granted by the government to select public sector enterprises (PSEs) that demonstrate consistent financial performance, managerial competence, and operational autonomy.
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The awarding of the ‘Mini Ratna’ status marks India’s oldest shipyard’s transition from dependence on government directives to a higher degree of self-governance – essentially the administration recognizing it as a “trusted performer” within the public sector ecosystem.
The Visakhapatnam-based shipyard, established in 1941, has been a major part of India’s naval and commercial shipbuilding capacity. It should be noted that the HSL faced prolonged financial challenges from the 1980s. Even after its transfer to the Ministry of Defence in 2010, HSL’s net worth remained negative.
The tide changed for the shipyard after 2015 through a package of internal reforms focusing on cost control, productivity, and digital transformation.
The ‘Magic of Five’: Blueprint for Revival
The company adopted what it calls the “Magic of Five” strategy – covering operational efficiency, financial discipline, technology modernization, human resource development, and communication.
HSL implemented the SAP S4/HANA enterprise system, improved project costing and cash flow management, and expanded its supplier base from about 130 to more than 560 vendors, supporting local small and medium industries.
In FY 2024–25, HSL posted a total income of around Rs 1,586 crore and profit before tax of Rs 295 crore turning net worth positive for the first time in about four decades.
What HSL Chairman Said
“It is a proud moment for all at HSL. Achieving Mini Ratna status reflects the dedication and commitment of our workforce. I extend heartfelt thanks to the Ministry of Defence, our customers, and business partners for their support, trust, and collaboration,” said Commodore Girideep Singh, the company’s chairman and managing director.
“The new status gives HSL greater financial and operational autonomy, allowing it to approve investments up to a prescribed limit without prior government clearance.”
Recently, the HSL has delivered a number of key naval assets, including the Diving Support Vessel INS Nistar, and is building a series of 44,000-tonne Fleet Support Ships for the Indian Navy.
HSL has now also ramped up its capacity at ship repair division in Visakhapatnam, handling refits for Coast Guard and naval vessels, including the life-extension overhaul of ICGS Sarang.
It has also planned to set up a satellite shipyard to further expand capacity and reduce bottlenecks, with sites such as Kakinada and Mulapeta Port under consideration.
It is also investing in green shipbuilding, robotic welding, and AI-assisted inspection systems as part of its modernization push.