Will Japan’s Mitsui OSK shipping giant transform India’s maritime industry with strategic partnerships?
SINGAPORE, Tuesday, September 9, 2025 — Japan’s Mitsui O.S.K. Lines (MOL), the world’s second-largest shipping company, is pursuing partnerships with Indian shipyards to build tankers, supporting India’s push for local manufacturing, as announced by CEO Takeshi Hashimoto at the APPEC conference.
Japan Mitsui OSK invests in Indian shipbuilding to bolster India’s maritime sector, enhancing regional trade and manufacturing capabilities in South Asia amidst growing global demand for energy and goods.
Japan Mitsui OSK Invests in Indian Shipbuilding Partnerships
At the Asia Pacific Petroleum Conference (APPEC) in Singapore on Tuesday, September 9, 2025, at 11:00 AM, MOL Chief Executive Takeshi Hashimoto declared the company’s intent to collaborate with Indian firms to construct tankers locally. “The Indian government has a strong preference to see new vessels constructed in India. If possible, we want to be involved,” Hashimoto said, aligning with India’s maritime growth strategy. This move follows discussions with the Indian government to diversify MOL’s shipbuilding sources beyond China, South Korea, and Japan.
MOL, operating a global fleet of 935 vessels, including 13 registered in India, aims to become the country’s second-largest fleet operator. The company has engaged with Cochin Shipyard Ltd., planning to order medium-range (MR) tankers with a capacity of approximately 50,000 deadweight tonnes (DWT) for transporting refined oil products.
India’s Maritime Development Push
India’s government is modernising maritime laws to encourage foreign participation in shipbuilding, ports, and shipyards, aiming to reduce freight costs to foreign firms by one-third by 2047. In February 2025, the Ministry of Ports, Shipping and Waterways announced a INR 250 billion (USD 2.84 billion) maritime development fund to finance shipbuilding and repair clusters in five states, including Gujarat and Maharashtra. “India is where growth lies, and with the government announcing subsidies, we want to contribute,” said Captain Anand Jayaraman, MOL India Executive Officer, at a New Delhi press briefing on Monday, September 2, 2025, at 3:00 PM.
India currently holds less than 1% of the global shipbuilding market, dominated by China (40%), South Korea (30%), and Japan (20%). The government’s plan includes developing three greenfield shipbuilding clusters and two brownfield projects to enhance capacity, supported by partnerships with South Korean firms like HD Hyundai.
Strategic Expansion in India
MOL is advancing its strategic investment in India’s maritime and logistics sectors. The company plans to place an initial order for medium-range tankers from Cochin Shipyard, though specific timelines for these tanker orders remain unclear. In addition, MOL India will enter railway logistics by late 2025 or early 2026 and intends to invest in three to four Indian startups to expand its footprint across logistics and clean energy solutions
The push aligns with India’s ‘Make in India’ initiative, aiming to boost competitiveness and reduce costs. MOL’s collaboration with Cochin Shipyard follows the latter’s July 2025 MoU with HD Korea Shipbuilding & Offshore Engineering for technical expertise, enhancing confidence in India’s shipbuilding capabilities.
Background
India’s shipping fleet has struggled to keep pace with its trade surge, particularly in energy imports and refined oil exports. Mitsui OSK, founded in 1884, has a storied history of innovation, including operating the world’s first bridge-controlled ship, Kinkasan Maru, in 1961. With a global fleet of over 900 vessels, MOL’s pivot to India reflects the country’s rising strategic importance in maritime trade. India’s shipbuilding ambitions, backed by a INR 25,000 crore fund, aim to challenge East Asian dominance by 2035.
What’s Next
Japan’s Mitsui OSK Lines (MOL) is deepening its role in India’s maritime sector through strategic investments. The company is in discussions with Cochin Shipyard and other partners to secure medium-range (MR) tanker orders from Indian shipyards, though specific timelines for these orders remain unclear. Separately, MOL is partnering with ONGC via a joint venture to build and operate two Very Large Ethane Carriers (VLECs) under a heads-of-agreement signed in July 2025. These carriers are expected to transport ethane to OPaL’s Dahej facility starting in mid-2028, pending board approvals and equity structuring. The scale of MOL’s broader investment in Indian shipbuilding beyond the VLEC deal has not been publicly disclosed.
Published in SouthAsianDesk, September 9th, 2025
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