In the wake of global meltdown global shipping ancillary majors are betting big on India primarily due to lower manpower cost and a demand for more defense ships and offshore vessels.
"I see good opportunities in the ship ancillary industry in this country. If you look at the offshore segment there is a big scope in front of us," said Rakesh Sarin, managing director of Wartsila India.
As many as 40-45 international ship ancillary majors are looking to set up shop in India with Rs 15,000-20,000 crore worth of investment expected over the next 3-4 years.
Firms like Rolls Royce, MAN AG, Alva Laval and Aalborg are already scouting for locations. While Indian majors L&T, Godrej & Boyce are open for partnerships which could create up to 15,000 jobs.
"We have information of 40-45 ancillary companies setting up plant in India for parts like main engines, compressor, pumps, valves, paints. There are possibilities of exports also,” P A Govil, advisory of Shipyards Association of India.
The cost saving could be up to 20 per cent for ancillary makers and for the end user shipbuilders who import 80 per cent of their components and savings could be around 30-40 per cent.
The government on its part is talking to multiple authorities to offer fiscal benefits so that more investments flow in but the recovery in the shipping and ship building sector will play a key role in a smooth flow of these investments into India.