Thyssenkrupp Marine Systems (TKMS) is positioning itself to leverage the Project 75 India (P75I) submarine contract to establish a significant shipbuilding hub in India. This initiative aims not only to fulfil the immediate requirements of the Indian Navy but also to create a broader framework for naval manufacturing and export.

TKMS has proposed a partnership with Mazagon Dock Shipbuilders Limited (MDL) to create a joint manufacturing hub for building submarines and potentially other naval assets, such as surface vessels and autonomous marine vehicles. The CEO of TKMS, Oliver Burkhard, emphasized that this collaboration could lead to substantial cost reductions, estimating that manufacturing in India could be up to 50% cheaper than in Germany due to lower labour costs.

This initiative is framed as a strategic collaboration between Germany and India, aimed at countering China's influence in the Indo-Pacific region. The geopolitical context, particularly heightened demand for naval defence equipment following recent conflicts, underscores the urgency and importance of this proposal.

Project 75I Details

The P75I project involves constructing six new diesel-electric submarines equipped with advanced Air Independent Propulsion (AIP) systems. These submarines are designed for enhanced stealth capabilities and operational efficiency, allowing them to remain submerged longer than current models in the Indian Navy.

As part of the contract, there is an emphasis on transferring technology and expertise to Indian shipbuilders. By the time the fourth submarine is completed, it is expected that 60% of its components will be sourced from within India, up from 45% for the first submarine.

Competitive Landscape

Fierce Competition: TKMS is competing against a consortium of Larsen & Toubro (L&T) and Spain’s Navantia. Both bids are currently under evaluation by the Indian Navy, which is expected to make recommendations soon. TKMS's proven AIP technology gives it a competitive edge over Navantia, whose AIP-equipped submarines will not be operational until 2026.

Should TKMS and MDL win the contract, they plan not only to fulfil domestic needs but also to position India as a hub for exporting naval equipment to Southeast Asia and South America, capitalizing on India's cost advantages and strategic location.

TKMS's ambition to establish a larger shipbuilding hub in India through the P75I project reflects both economic opportunities and strategic imperatives in the current global defence landscape.