Garden Reach Shipbuilders & Engineers Ltd (GRSE), one of India’s premier warship builders, announced a significant development on Wednesday, April 9, 2025, stating that it has secured a major order worth ₹489.98 crore from the Geological Survey of India (GSI). The contract is aimed at the design, construction, and delivery of two state-of-the-art coastal research vessels, further cementing GRSE’s role in bolstering India's maritime and scientific infrastructure.

Scope of the ₹489.98 Crore Order

According to GRSE's official statement, the two coastal research vessels will be built in-house, with delivery slated to be completed within 26 months from the date of the contract signing. This move aligns with India's increasing focus on marine research and coastal security in the wake of evolving maritime challenges.

The vessels are expected to be equipped with advanced research and navigation capabilities, specifically tailored to meet the operational requirements of the Geological Survey of India. These ships will aid in scientific data collection, mineral exploration, and environmental monitoring along India's vast coastline.

MoU with SWAN Defence for Commercial Shipbuilding

In a parallel development, GRSE on Tuesday, April 8, 2025, signed a Memorandum of Understanding (MoU) with SWAN Defence and Heavy Industries Ltd. This partnership aims to boost indigenous capabilities in commercial shipbuilding.

The collaboration will focus on the joint construction of commercial vessels and offshore structures, thereby broadening GRSE’s portfolio beyond defence contracts. The strategic objective of this tie-up is to serve both global clients and Indian maritime interests, tapping into emerging demands from commercial shipping and oil and gas sectors.

This MoU also reflects India’s broader "Make in India" initiative, under which both public and private players are encouraged to manufacture for global markets using local resources and talent.

MoU with PWD Nagaland for Modular Bridges

Adding to its diversified engagement across geographies, GRSE also inked a first-of-its-kind MoU with PWD Nagaland last month. The agreement involves the supply of eight Double Lane Modular Steel Bridges to enhance rural and border connectivity in the state.

This marks the first MoU signed between Garden Reach Shipbuilders and a state from North-East India, indicating the company’s expansion into remote infrastructure development.

Though the value of the Nagaland MoU has not been publicly disclosed, the initiative showcases GRSE’s increasing role in not just shipbuilding but also infrastructure projects across India.

Stock Market Reaction to Developments

Despite the back-to-back positive announcements, Garden Reach shares witnessed a decline of 3.21% during early market hours on April 9, trading at ₹1,515.6 apiece at 10:35 AM.

Market analysts suggest that the short-term fall in share price could be attributed to profit-booking or broader market sentiment, and not necessarily linked to the quality or scale of the announcements. However, the long-term outlook remains positive, given GRSE’s consistent performance in securing high-value contracts and expanding its capabilities.

Expanding Footprint Across Domains

These developments are part of GRSE’s strategic vision to diversify its portfolio and tap into both defence and civilian maritime markets. From warships and research vessels to infrastructure components like modular bridges, the company has demonstrated agility in responding to national priorities.

With India enhancing its maritime capabilities and strengthening research, coastal surveillance, and infrastructure development, companies like GRSE are well-positioned to benefit from policy shifts and increased public investment.

Background on GRSE

Garden Reach Shipbuilders & Engineers Ltd is a Ministry of Defence enterprise, headquartered in Kolkata. It is one of the few shipyards in India that has delivered over 100 warships, more than any other shipyard in the country. The company specializes in designing and constructing naval vessels, including frigates, corvettes, and patrol vessels.

In recent years, GRSE has been actively working on modernising its shipbuilding infrastructure, adopting digital shipbuilding techniques, and expanding its global footprint through exports and collaborations.

Conclusion

Despite short-term volatility in the stock market, GRSE's recent wins underline its strong position in India’s defence and infrastructure sectors. The ₹489.98 crore coastal research vessel order from GSI, along with strategic partnerships in both commercial shipbuilding and regional infrastructure, reflect the company’s commitment to innovation, national service, and economic growth.

As India continues to invest in maritime strength and connectivity, Garden Reach Shipbuilders is set to play a pivotal role in shaping the country's naval and research capabilities.

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