India's Warship Challenge: L&T Urges Faster Procurement, Private Sector Role and Bulk Orders to Outpace China

At this year's NDTV Defence Summit, a stark call echoed across the industry: India must dramatically accelerate its warship building capabilities to stay relevant in an increasingly complex maritime security environment.

Arun Ramchandani, Executive Vice-President of L&T Defence, painted a picture of a crucial gap widening between India and its primary regional competitor, China.

India's Challenge: Time, Technology, and Ecosystem​

Ramchandani's message was clear – India's shipbuilding turnaround times are significantly slower than China's, a disparity that cannot remain unaddressed.

Modernization lies at the heart of this solution, including adopting cutting-edge technologies alongside streamlining processes and fostering a stronger shipbuilding ecosystem – all focused specifically on speed and efficiency.

This ecosystem, vital for building complex warships, needs everything from highly skilled labor to advanced infrastructure and seamless supply chains. Enhancing and expediting all such elements remains key to bolstering India's naval prowess.

Procurement, Partnerships, and Matching China's Pace​

Within this equation, L&T's executive stresses that the Indian Navy must overhaul its procurement process and work more closely with private shipyards.

Defence analyst Ranesh Rajan adds weight to this perspective, citing India's approximately 7-year timelines for frontline warships compared to China's significantly shorter timelines.

China's efficiency is staggering; Type 055 and Type 052D class vessels often move from launch to commissioning in a mere 3 and 2 years, respectively. Rajan implores India to emulate China's mass-ordering strategy, focusing on standardized platforms with minimal modifications.

This continuity streamlines construction, cuts costs, and enhances the fleet's operational readiness.

Benefits of Bulk Orders and Standardization​

This proposed shift isn't just about copying China's playbook; it aligns with broader principles supported by many defence analysts. Bulk orders mean consistent work for shipyards, allowing them to optimize resources and production lines.

Standardized ship designs further accelerate building and create efficiency within maintenance and supply chains.

The Way Forward​

L&T's message, amplified by Rajan and others, reveals a path India could take.

Change won't be easy: it requires rethinking procurement, building stronger public-private partnerships, and embracing advanced construction methods like modular shipbuilding for greater efficiency.

Yet, the payoff is a modernized Indian Navy, better equipped to meet the strategic challenges of a dynamic maritime environment.

 

[charminar_waale_ismail_bhai]

The Government even tried to modernize the erstwhile OFB

Haha, the fault lay with government. Typical government, trying to treat Malaria with Chemotherapy.

They should have just started privatizing OFB in piecemeals.

Good that the government realized it and split it into smaller corporations.

Easier to prevent militant unions and also easy to privatize in stages.

 

[ABHIJIT APSINGIKAR]

Haha, the fault lay with government. Typical government, trying to treat Malaria with Chemotherapy.

They should have just started privatizing OFB in piecemeals.

Good that the government realized it and split it into smaller corporations.

Easier to prevent militant unions and also easy to privatize in stages.

Khangress had a nasty habit of pushing contentious issues under the rug and act as though everything was fine. They bear the sole responsibility of the absurd atrophied nature of erstwhile OFB and DRDO as well as they kept bearing with their nonsense for six decades. Finally glad that this government finally decided to break the back of OFB obstructionism and is now about to break the hold of DRDO and reform DRDO as well.

 

[Apocalypse gupta]

For the nilgiri class frigates, India has also employed modular construction. We had contracted a european shipbiilder to learn about this process. And a lot of the money was spent on infra upgrades at the dock. I believe that as the order numbers for domestic shibyards increases, their shipbuilding prowess will also increase.

One major factor also is that our shipyards need to build mass number of non- defence ships as well such merchant vessels etc. China, south korea have big lead in this regard as well. I have heard of kochin shilyard building large nimber of private ships which is a good sign.

 

[Anant]

Don't give excuses... first L&T have to prove that they can build a warship. Then only they can ask for bulk order.. MDL, GRSE, HSL, CSL building our own design warship. Ok if for NGD GOI issue an open tender. What L&T will do.? I am sure they will screwdriving a foreign design ship.. And half of the money we spend on it will go other country.. why we will let it happen? This is the reason still so much push we are top in defense import. Why don't L&T invest in infrastructure and collaborate with WDB and make warship. Because even IN won't trust L&T.. everybody seen what happens in AMCA.. TEDBF and IMRH will also go similar way.. No SPV model..

Um, L&T has built ships for the Coast Guard, and they work in conjuction with Hindustan Shipyards Limited for our SSBNs.

As for building ships, L&T is already a contender in Project 75I with Navantia. As for larger warships, the historical problem has been that private yards were either excluded from contracts entirely, or simply couldn't meet the low prices set by DPSU yards (the latter would almost always see significant delays and cost overruns, but that's that).

 

[Superpower Bharat]

Designing a prototype takes immense funds when you're dealing with naval warships and especially so when you are dealing with submarines. PSU shipyards do not need to worry about such trivial issues as the Government of India bankrolls their projects anyway. However private sector does not have a sugar daddy to bankroll them. They are answerable to their investors and thus would be hard-pressed to justify investments without commitment to acquire them. Without a firm confirmed commitment, they will never sink such funds.

If they doesn't believe that they can do it and can meet the requirements of defense forces.. then they should not shout.. What do you think DPSU and DRDO is walking on bed of roses..?? Each and every steps they were criticize... the sword of Cancelation of project always hanging on there head.

 

[ABHIJIT APSINGIKAR]

If they doesn't believe that they can do it and can meet the requirements of defense forces.. then they should not shout.. What do you think DPSU and DRDO is walking on bed of roses..?? Each and every steps they were criticize... the sword of Cancelation of project always hanging on there head.

Oh, They never said they cant. L&T short record in defense manufacturing has been anything but stellar, as they have successfully fulfilled all projects that they were a part of without delays. What they asked for was to be given bulk orders and participation in major shipbuilding projects, unlike the piecemeal patrol craft orders for the Coast Guard.

Bulk orders allow them to procure raw materials in mass quantities, thereby accruing significant discounts and with commitment for bulk orders in hand they can then raise capital for undertaking capacity expansion and facility modernization project to handle construction of even larger ships.

 

[Gururag Kalanidhi]

Right, like the Navy brass will heed to this and start ordering in pairs from now on. Right after the Vikramaditya fiasco you'd think they'd have learnt and ordered another a follow-up to IAC-1. Viraat was already on its way out. But nooo, they had to toy around with the idea of a nuke-powered CATOBAR when they absolutely had no funds for it. Had they simply ordered another follow-up to Vikrant, they second IAC would've reached atleast keel laying phase by now. Not to mention the ridiculous cancellation of LCA-N. It is a fine aircraft with amazing cost and operation characteristics. It would've been a perfect replacement for the outgoing Sea Harriers. Maybe not in the class of the MiG 29. But still a fine little fighter the LCA-N. But nooo, they simply had to reject it and hang on to the idea of buying a Rafale or a Hornet, neither of which are STOBAR certified.

And then, there's China. In the same time we've inducted Vikramaditya, they've moved on to commission two STOBAR carriers, Lianoning and the Shandong— two really fine carriers with an amazing compliment of fighters. And while we've been bickering about the choice between Rafale and the Hornet, they've started trials with their J-35 from the aforementioned STOBAR carriers.

 

[ABHIJIT APSINGIKAR]

I attack DPSU all the time

Indian private companies like Adani Ambani Tata Mahindra Lt... Only love screw driving.
Adani Ambani Tata can develop P75I or passenger aircraft but no

Small new private companies in turkey is doing that... Developing weapons on their own..

You are an idiot. Don't reply to me Pls.

Oh I was going to ignore u ! But boy u deserve a severe pat down. An idiot without an iota of knowledge about industrial process complains about screwdriving?

 

[ABHIJIT APSINGIKAR]

Don't give excuses... first L&T have to prove that they can build a warship. Then only they can ask for bulk order.. MDL, GRSE, HSL, CSL building our own design warship. Ok if for NGD GOI issue an open tender. What L&T will do.? I am sure they will screwdriving a foreign design ship.. And half of the money we spend on it will go other country.. why we will let it happen? This is the reason still so much push we are top in defense import. Why don't L&T invest in infrastructure and collaborate with WDB and make warship. Because even IN won't trust L&T.. everybody seen what happens in AMCA.. TEDBF and IMRH will also go similar way.. No SPV model..

Since when are MDL, GRSE, HSL, CSL building our own design warship? They are just builders of the ship who build it according to a detailed ship architecture blueprint. The architects of the ships would be the Directorate of Naval Design (DND), which designs ships in close cooperation with the Indian Navy's own Warship Design Bureau (WDB).

 

[Akshat]

screw driving

only kalyani doing original RD

Oh yeah? L&T making FICV on its own, Tata working on manned aircrafts and MALE drone and vertical lift drone etc. are screw driving according to your tiny brain?

 

[Akshat]

I attack DPSU all the time

Indian private companies like Adani Ambani Tata Mahindra Lt... Only love screw driving.
Adani Ambani Tata can develop P75I or passenger aircraft but no

Small new private companies in turkey is doing that... Developing weapons on their own..

You are an idiot. Don't reply to me Pls.

Oh l&T is dying to get its hands on such projects. Its chief openly said on stage that open up the tenders to us and watch the results. Look at how they are working on the armored vehicles. Working on light tank, and FICV. And it all started with screw driving of Vajra. So you are the idiot who thinks screw driving is bad and just because these companies have money they will go ahead and waste it around like the DPSUs do.

The first step has to be screw driving, from where they understand the manufacturing process and also get revenue streams to reinvest in bigger projects. But you won’t understand the concept of fiduciary responsibility as your ideals are failed nations like Iran, North Korea, Pakistan, Hitler’s Germany and USSR.

 

[Akshat]

No one stopping private companies to do with R&D and field a final product. L&T says it design a midget submarine. Why won't they build a prototype and give IN for testing. MDL is doing that. Please explain why India's LPD project was doomed.. Even for FSV an open tender was issued. Why L&T won't came up?

MDL is doing that with public money. Where is the public money for L&T? Where are the funds for R&D?

 

[Akshat]

If they doesn't believe that they can do it and can meet the requirements of defense forces.. then they should not shout.. What do you think DPSU and DRDO is walking on bed of roses..?? Each and every steps they were criticize... the sword of Cancelation of project always hanging on there head.

They are not just walking on a bed of roses but are also being showered with more roses. They get full state backing and unlimited funds and time. They get state guarantee that even if their product can be used and is of 20 year old specs, they will get orders even at super inflated prices. Even if they build a screw for a million dollars each they will get orders. Look at how MoD forced army to buy new trucks and reduce order size just so that ATAGS can be purchased.

 

[Frank]

Oh yeah? L&T making FICV on its own, Tata working on manned aircrafts and MALE drone and vertical lift drone etc. are screw driving according to your tiny brain?

LT developing FICV??? WHEN??

Tata working on manned aircrafts ?? 296 SCREW DRIVING??

MALE drone?? which one??? give name...

OH WELLL I HAVE TO BLOCK LYING FRENCH D A L L A AGAN...

 

[The_rED_dEVIL]

Yes L&T should be involved.

India needs lots of shipyards.

We need more shipyards capable of building capital ships Destroyers and Diesel Submarines. Maybe add GRSE for Destroyers and L&T for Subs.

In fact they need to increase the number of ships built simultaneously.

 

[Sandeep]

India has already started to use modular construction to build our naval vessels and we have improved our construction time as the manufacturing time for our naval ships have reduced. There is still a lot more to be done but the problem is that we need to change our working practice and increase the use of automation and modern technology to cut down costs and time. Another issue is that we need to increase the number of hours that staff work per day and employ a day and night shift so that work carries on 24/7 which will cut down on manufacturing timeline which will allow more orders to be placed.

One crucial problem that India has is that we are not manufacturing enough civil ships for foreign countries as China has started much earlier and can do it at a much cheaper price. We need to start constructing large cargo ships, cruise line, oil or gas tankers, coal shipments. But the west have to move away from giving China orders and move that investment towards India as it's towards their own benefit as well.

 

[Siddharth Asthana]

All, just wait for 2024 elections, the DPSUs are going to get a massive k!cK to compete.

Regarding tech, IN is the best among forces that favours indigenisation...the problem is the DPSUs have no incentive to innovate due to lack of competition...mark my words...TATA/MAhindra/Reliance/ADANI and L&T are going to fight tooth & nail for future contracts....WHY....bacause its easy money..........the costs and timelines projected by DPSUs are so out of sync that the PVt firms can easily beat the price and still make high returns.

Lstly, in next 5 yrs, we will see ~ 20% pvtization of all these DPSUs, the next govt will be pushing reforms with an iron fist....a million farmers protesting is different from a couple of thousand babus protesting...wait and watch

 

[ABHIJIT APSINGIKAR]

It would've been a perfect replacement for the outgoing Sea Harriers.

Sea harriers are already retired. They were retired way back in 2016 and we don't have any operational Sea Harriers. You dont induct LCA-N to replace capability of a fighter that you have replaced about 8 years back.

 

[Prashu Sam]

AT least someone has guts to point of inefficiencies and demand for improvement. Nowadays (and from comments) you can see how people live in dreamy world that how everything is great and improving without using world standard benchmark. if you look for 10-15% improvements per year it will take 300 years for you to catchup.

Radical change need radical way of thinking and improvements.

Sadly most commentators are in last century and if you point out anything that is not working well. They think it will affect the Govt image and start opposing. Hope people start thinking independently and above political affiliations and think about nation before Party

 

[Rational Guy]

For the nilgiri class frigates, India has also employed modular construction. We had contracted a european shipbiilder to learn about this process. And a lot of the money was spent on infra upgrades at the dock. I believe that as the order numbers for domestic shibyards increases, their shipbuilding prowess will also increase.

One major factor also is that our shipyards need to build mass number of non- defence ships as well such merchant vessels etc. China, south korea have big lead in this regard as well. I have heard of kochin shilyard building large nimber of private ships which is a good sign.

We can take help of SK in increasing our ship building capabilities. Same way we took help of Japanese companies for help in automotive production in the 80s/90s. This is more complex true but can be done