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Garden Reach Shipbuilders & Engineers Ltd
Earnings Call Analysis
Q3-2024 Analysis
Garden Reach Shipbuilders & Engineers Ltd
Garden Reach Shipbuilders & Engineers Limited (GRSE) has been charting a robust course, delivering its best ever results for Q3 and the 9 months ending December 31, 2023. With an exceptional revenue increase of 31% over the previous year's same period, reaching INR 2,576 crores, and a striking EBITDA rise of 41%, the shipbuilder saw its PAT climb by a remarkable 42% to INR 245 crores.
Backed by a powerful INR 23,592 crores order book, GRSE's growth is propelled by four key projects for the Indian Navy: the P-17 Alpha, Survey Vessel (Large) project, Anti-Submarine Shallow Water Craft, and Next-Generation Oceangoing Patrol Vessel project. The company targets maintaining an order book value between INR 23,000 crores and INR 25,000 crores in the coming years, signaling its intent to aggressively win more navy contracts.
In the upcoming fiscal year '25, GRSE is set to deliver two Survey Vessels (Large) and two Anti-Submarine Shallow Water crafts. Managing incremental revenue accrual through its projects, GRSE has detailed a delivery timeline indicating a Survey Vessel (Large) and an Anti-Submarine Shallow Water Craft to be delivered in Q1, followed by the second Survey Vessel in Q3, and another Anti-Submarine Shallow Water Craft in Q4.
GRSE has guided investors towards an anticipated revenue growth of around 25% for the next two years. This outlook is based on the progress of the P-17 Alpha project, which holds significant potential as it reaches peak construction phase. The company anticipates surpassing INR 3,000 crores in revenue for the current fiscal year, on track to reach INR 3,800 to INR 4,000 crores by FY '24-'25, and around INR 5,000 crores by FY '25-'26.
Diversifying its portfolio, GRSE has ventured into gun manufacturing, securing an order for 30mm Naval Surface Guns valued at around INR 250 crores. This new vertical, showing promise with interest from both the Indian Navy and Coast Guard, exemplifies GRSE's strategic expansion beyond traditional shipbuilding.
The shipbuilder is poised to penetrate new market segments with electric and autonomous vessels, bolstering its competitive edge. Plans to extend shipbuilding capacity from 20 to 24 warships by 2025 are underway, ensuring GRSE's preparedness to meet the voracious demand for naval and commercial vessels on the horizon.
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Good afternoon, ladies and gentlemen. I welcome all of you to the analyst and brokers meet of Garden Reach Shipbuilders & Engineers Limited to discuss the financial results and the performance of Q3 and 9-month FY 2024. We have with us Commodore P R Hari, Indian Navy retired, Chairman and Managing Director of GRSE; Shri R.K. Dash, Director Finance and CFO; and Shri Sandeep Mahapatra, Company Secretary. We will begin the conference with Commodore Hari's opening remarks, following which, we will have the Q&A session. Commodore Hari, sir, may I request you to come up and give the opening remarks.
Good afternoon, ladies and gentlemen. Can you hear me at the back? Okay. Thank you. We are meeting almost after 1 year. I met most of you about an year back, and what is interesting is I've just come from Kolkata and the traffic difference between Kolkata and Mumbai, there the traffic moves, of course, it moves at snail's space. here, it just doesn't move. I was staying at the MDL Guest House and it took almost half an hour for me to reach here. Sorry to keep you waiting in case you have been waiting for long.
I welcome you all to the conference to discuss the financial performance of GRSE for the quarter ending and the 9 months ending 31st December 2023. I'm sure you have been keeping track of the company's performance for a very long time and have been associated with us either through physical interactions like what we did last year or through the virtual meets that we have every quarter.
What I have planned is, I will give you an overview of the company's financial performance. The physical performance that has translated into the financial performance, our current order book position, how we plan to execute the current orders? And what is in store for all of us for future? This is the track I plan to take today.
For the record, for a seventh quarter on the trot, our financial parameters have been on an upward trend. And again, for the quarter ending 31st December 2023, and the 9-month period ending the same date, we have recorded the best ever results in the history of the company. Our revenue from operations for the 9-month period touched INR 2,576 crores, which is almost 31% increase over the corresponding period of the last 9-month for FY '23 Similar increase in total income, 34% rise. EBITDA touched INR 367 crores with a 41% rise. The PAT, 42% rise at INR 245 crores.
In a nutshell, the company's performance financially has been good as what we perceive. And now coming to what has translated into this performance? Our current order book stands at INR 23,592 crores as on 31st December. And most of this come from the shipbuilding sector, with limited contribution from the ship repairs and our other verticals like the portable steel bridges and so on. This INR 23,592 crores order book comprises of 4 projects that we are executing for the Indian Navy. The 3-ship P-17 Alpha project, the 4-ship Survey Vessel (Large) project, the 8-ship Anti-Submarine Shallow Water Craft project, and the 4-ship Next-Generation Oceangoing Patrol Vessel project.
Now during the last year, we have delivered 2 platforms, that is, one, the first of the 4 Survey Vessel (Large) that we are constructing for the Indian Navy. This was delivered during the last quarter itself. We delivered it on 4th of December 2023. And again, for record, this is the largest ever survey vessel built in our nation. This ship was subsequently commissioned during February, this last month the ship was commissioned into the India Navy. In addition to that, we had delivered an oceangoing passenger-cum-cargo vessel to the government of Guyana. This ship was delivered and commissioned on 23rd of April 2023. So these were the 2 platforms that we have delivered.
In addition to that, last year in shipbuilding, as I have -- during our early interactions I have mentioned, launch of a ship is a milestone event where after a certain amount of physical progress is achieved and the ship takes it's complete form, the ship has put to water, after which the outfitting commences. So last year, I would like to term it as the year of launches. We have launched 7 platforms during the last year -- last 9 months' period, including the last of the P-17 Alpha ships. The ship was launched by the Honorable President of India on 17th of August 2023.
We -- I will just quickly cover the status of the ongoing projects so you have clarity on where we stand with respect to each of the projects. Coming to the P-17 Alpha project, it's a 3-ship project. The first ship is currently at around 66 percentage of physical progress. The second ship, second P-17 Alpha ship is at 55%. And the third ship, what I just mentioned was launched on 17th of August, is currently at around 43 percentage of physical progress. The delivery plan of this ship is as follows: we intend delivering the first ship during mid of 2025, that is August '25 is the target for delivery of the first ship. And the second ship would be February 2026; and the third ship by August '26. This is a delivery plan for these ships. And currently, we are on schedule.
Coming to the Survey Vessel (Large) project. I had mentioned that the first ship was delivered last year. The second, third and fourth ships are now getting readied for delivery with the first of these 3 ships already at the harbor trial space. We intend sending the ship for sea trials in the coming month. My appreciation for delivery of the ship would be May, June this year. Thereafter, by December, we'll be delivering the second of the remaining 3 ships. And the last vessel, early next year, the first half of 2025. It may spill over to the beginning, the first quarter of FY '26, which means we intend delivering it around April, May 2025.
Coming to the Anti-Submarine Shallow Water Craft project. Just to inform you, this is an 8-ship project that we are executing. And the fifth and sixth ships of this project were launched yesterday. We did the launch of these 2 ships yesterday. Of the 4 ships that were launched earlier, one of them, the first of the ships is currently at the harbor trial space akin to the survey vessel that I mentioned, and we intend delivering the ship by June this year. And thereafter, every 6 months, 1 ship of this project will come out. So this project, Anti-Submarine Shallow Water Craft project, we expect to complete by mid of 2026.
Physical progress, I will just state that the first ship is currently at around 77%, second ship at around 62% and so on until -- the third ship is at almost -- same, 62%. And the last ship, the eighth ship is at around 20% physical progress. The next generation. The third project -- the fourth project that we are executing is the Next-Generation Oceangoing Patrol Vessel. It's a 4-ship project. The contract was signed on 30th of March 2023. We have made good headway in this project. And all the -- we have started production of all the 4 ships and all 4 of them, we have actually started a strategy by which we are doing concurrent construction of all 4 instead of going sequential. All the 4 ships are currently at around 10% of physical progress.
This project is expected to be completed by FY '28. What I'm trying to say is that the delivery of these vessels will commence from 2026, thereafter every 6 months, and it will go until early '28. In addition to these 4 projects that we are executing for the Navy, we're also executing a project for the Government of West Bengal. That is a fully electric vessel. When delivered, that will be the largest in terms of passenger capacity to be built in India. The vessel has already been launched, currently undergoing the river trials. We intend delivering this vessel to the Government of West Bengal next month, that is April, we'll be delivering this vessel. Again, for you to understand, at this juncture, among the players who manufacture green vessels, we call them green vessels, Cochin shipyard is there. They are slightly ahead of us. And with this delivery, we're very confident of catching up with them and even surpassing them because there is good market potential in this segment.
In addition to that, we have also been declared L1 for an oceanographic research vessel for the Ministry of Earth Sciences. This is an approximately INR 840 crores order. The LOA has already been issued, and we expect to sign the contract during March itself. We also been declared L1 for an autonomous platform for the Ministry of Defense, DRDO. And this is a small order. But then again, why I'm highlighting this is anything which is today being developed in this field of autonomous platforms has got market potential. This is a very small, very low-value order. It's around INR 20 crores. For them, it is only a technology demonstrator, but the opportunities in this field are gallop because both the Navy and the Coast Guard are looking for autonomous platforms in future.
We are -- also coming to the other segments. One of our areas of focus has been exports. And as you are aware, we have so far delivered 2 defense platforms earlier to Government of Mauritius way back in 2014 and as late as 2021, another platform was delivered for Seychelles. We have been declared L1, again, through a global tender for a dredger for the Government of Bangladesh. Still in liquid form. The contract is yet to be signed. The L1 declaration has happened. We expect considering their government change -- recent government change, we expect the contract to be signed in another 3 months.
We have also been declared L1, again, for the Government of Bangladesh through a defense line of credit for a tug -- oceangoing tug. Both these orders, the value could be between INR 150 crores to INR 200 crores each. But just why I'm stating this is, although the value is not much, these are our exports.
Our area of focus for exports has been, one, within the defense segment; second, in the IOR region, especially friendly foreign nations. And now with the market having been opened up for commercial shipbuilding, when we express our interest in joining the bandwagon, several Scandinavian nations and also clients from Germany has approached us. And hopefully, whenever we interact next -- during the -- I presume we'll be interacting again in after the quarter, I should be able to convey the happy news to you that by the time we expect to conclude some commercial shipbuilding orders.
Despite orders on anvil in these segments that I mentioned, our primary focus would continue to be on warship building because that is where the order value exists. I will just give you a glimpse of what is in store, and this is also a follow-up of what I mentioned last year. The major orders that are on the anvil. One would be from the Indian Navy, the next-generation corvettes. We expect the RFP to come out by June, July this year, June or July this year, the RFP. And we stand a very good chance of winning this contract. It's a high-value contract, total order value, the AP value -- AON value has been INR 36,000 crores.
Split -- it's 8-ship project split between the L1 and L2 shipyards at 5:3, that is 5 ships to the L1 shipyard and L2 shipyard getting 3. So the stakes here are high. There are 4 shipyards shortlisted for this. We stand a good chance for winning this. We'll be bidding aggressively to win this order because this is one of our areas of specialization. To place on record that all the corvettes right now operating for the Indian Navy are built by GRSE. So that is the kind of expertise and experience that we have in building corvettes. The next project that is on the anvil would be the next-generation survey vessels.
This is a 5-ship project. Approximate order value -- the government has already given an AON. Approximate order value would be around INR 3,000 crores. This RFP is expected to come during the second quarter of the current financial year. Since the AON has been already accorded and this is only a follow-on of the vessels that we are already constructing, the RFP would not get delayed as per our appreciation. Here, again, definitely, we stand a good chance because we are right now constructing Survey Vessels (Large). The next RFP that is likely to come out is for 2 multipurpose vessels. This is again for the Indian Navy. The order value could be to the tune of around INR 1,200 crores. In addition to that, there is another project, which is on the anvil, which we are bidding aggressively. We are pursuing aggressively is for the P17 Bravo project. The Navy has got a requirement for 7 more of these vessels.
And at this juncture, we don't have clarity as to when the Navy would be -- because the AON for this has not yet been taken. Our appreciation is that this could be early next year that is early '25. Another high-value project could be the landing platform dock, LPDs. This has been going on for the last 10 years almost. We are also hoping that it will see the light of the day. But because the value is high, the order value is high, even if Navy goes for 2 of them, the order value could be to the tune of around INR 40,000 crores.
In addition, Coastguard is going to come up. They have not yet taken an AON. Our understanding is that they will be getting an AON during the first quarter of FY '25 for more oceangoing patrol vessels. They have just placed order on Mazagon Dock for 6 of them. So 5 more oceangoing petrol vessels, the RFP will -- is likely to come out during the first quarter of FY '25.
In addition, I'll just give you a glimpse of what more, but 120 fast interceptor crafts for the Indian Navy, 1 hospital ship for the Indian Navy, 22 follow-on waterjet FACs, that is fast attack crafts for Indian Navy. My appreciation, the RFPs would come out only during early -- that's the first quarter of FY '26. This is an overview of what is the order book what we have and what are the orders on the anvil, which is available in the market.
Right now, you may have seen the corporate movie of GRSE. What has been indicated is that our shipbuilding capacity is for concurrent construction of 20 warships. We have felt over the last 3 to 4 years that there is a need to increase this capacity. We have already started the process. And as a first step before investing capital on our own infrastructure, we went into the lease strategy. So 3 dry docks we have taken over from our neighbors, that Syama Prasad Mookerjee Port and they are being effectively utilized and earmarked for ship repairs. In addition, we are looking at 1 more dry dock from Kolkata Port, that's Syama Prasad Mookerjee Port, which we would like to earmark for shipbuilding. In addition, 2 of the facilities in GRSE, in our captive facility is getting refurbished. And the aim is to enhance our shipbuilding capacity from concurrent construction of 20 warships to 24 warships, and we intend achieving this target by calendar year 2025.
One of our focus areas has been new technology adoption. And as I mentioned, the development of autonomous platforms, both in surface, subsurface and also, of course, in the aerial mode is the area which the government is focusing on and so are the Armed Forces. We have already started, and in these 3 fronts, that is autonomous platforms, we are tied up with the start-ups and 2 of our products have already been launched -- successfully launched, an unmanned surface vessel and also an underwater surface platform. The underwater surface platform, we had carried out a user trials with the Indian Army. They wanted certain modifications, which are being presently undertaken. And we intend productionalizing this underwater platform by end of this calendar year.
As far as the surface platform is concerned, already, we have got an order -- developmental order from DRDO, which we intent completing by April, that is next month, coming month.
Commercial shipbuilding, I have already mentioned, I'm now giving you a glimpse of what we are looking at. Commercial shipbuilding, we are serious about it. And our appreciation, many of the negotiations are in final stages. Our appreciation is that we will be concluding contracts for commercial shipbuilding within a period of 3 months. Ship repairs is an area, which we had started focusing just about 2 years back. It is with that intent for developing, shipbuilding, ship repairs that we took over 3 dry docks, almost 100% occupancy is there. But so far, we have been doing small refits of Indian Coast Guard. Actually, the entire Eastern region requirements of Coast Guard are being met by us. Still, I would not state that we are fully mature as a ship repair entity. Target is 2025 with a couple of orders likely to come from the Indian Navy, high-value orders.
We also have a business vertical, which you are aware of portable steel bridges. We are the market leader, Indian market leader in this segment. Of course, the market share -- it's a market -- overall market itself is pretty modest. Right now, we are around 65% -- we own around 65% of the market share. This division is doing well because we have a running MOU with the Border Roads Organization, where for over 75 bridges, of which almost 40 have already been completed. And we also executed an order for the Government of Bangladesh for this bridges through DLOC, that is defense line of credit. And we have this year launched another product in this segment. That's a 5.3-meter carriageway Bailey bridge, which is the proprietary item of GRSE. And this would give us a head start during the -- for the -- to meet the requirements of the national highways, basically 5.3 meters is carriage width of highway. So this would help us gain further headway in this segment. We have also -- our USP is our product diversity. And we have our products ranging from warships to weapons.
Why I'm telling weapons is, the last year we had forayed into gun manufacturing. And we got an order from the Indian Navy for 10 -- 30mm Naval Surface Gun, order value is around INR 250 crores. And Navy has now shown interest in enhancing the order value. Coast Guard has also shown interest. And this is 1 vertical which we would like to nurture.
As I mentioned, our current order book stands at INR 23,592 crores. Our target would be to maintain similar order value, that is order value -- order book value of plus INR 23,000 crores to INR 25,000 crores in the coming years, too. That is the reason why we would be going aggressive to win orders, more orders from the Indian Navy and, of course, from the other segments.
I have finished. I'll just give you an overview of what we -- where we currently stand, what we plan to -- how we plan to move ahead in the coming years. I'm all open for questions, if any.
All investors have benefited tremendously by being invested in GRSE. I'm Keshav Harlalka from BHH Securities. Am I audible?
You are audible, but your vice is slightly distorted.
Okay. Is it better now?
It's better.
Yes, sir. So you're giving me -- so many warships you are delivering over so many time periods. So is there a way you can give us this on time line -- this is the time line this year, this quarter, these many warships will be delivered; this quarter, these many -- like it's very -- in orderly fashion? And what is the value of the warship, and what is the approximate margin? If you could give us some sense of that, it would -- the entire presentation will be in a better flow because somewhere it's '26, somewhere it is '24. So if you could give us some time line on an Excel sheet or something or even verbally, that would be very helpful, sir.
See, I will only talk about the orders that we're currently executing. And in the financial year '25, we will be delivering 2 Survey Vessel (Large), 2 Anti-Submarine Shallow Water crafts. And...
What would be the approx. quarter in which, first quarter, second quarter, third quarter and the approx. value of each of the vessels?
I can give an indicative.
Indicative approx. -- yes, yes.
I can naturally give an indicative this thing. In the first quarter of FY '25, we'll be delivering on Survey Vessel (Large) and 1 Anti-Submarine Shallow Water Craft.
See very interesting. We have this project reviews by Navy. All our projects, Navy conducts quarterly reviews. This is exactly the same question they ask. So I try and give this -- and they insist, "You give me the date. When are you going to deliver the ship." And then I give them a band. So I'll give you a band of delivery. So the first quarter, 1 ASW Shallow Water Craft and the survey vessel. In the second quarter, nothing because the ships are not at that stage of this thing. In the third quarter, 1 Survey Vessel (Large), that's the second of the 3 remaining. And in the fourth quarter, one Anti-Submarine Shallow Water Craft, which means 2 Anti-Submarine Shallow Water Crafts and 2 survey vessels during the current financial year. In addition to that, we'll also be delivering the next-generation electric ferry to the Government of West Bengal in the first quarter of FY '25.
I don't think you'll be really interested in the small projects like that small unmanned surface vessel and -- because they're a lot of -- they're only of academic interest and the order value is miniscule. And also 1 order for the Government of Bangladesh for patrol boats, not much order value. It is only are our presence there. For your interest, 2 survey vessels, 2 Anti-Submarine Shallow Water Crafts.
And what would be the approx. value of each of the vessels revenues, what would get in the company books?
Approximate?
Approximate value, what would come in as revenue for us when we deliver the vessels? Or is it build -- as we build, do we bill it to the client? Do we take in to our books?
Absolutely, absolutely. Because in shipbuilding, the revenue accrual is incremental as we execute the project. Like, I'll give you an example. The survey vessel, which I stated that -- survey vessel order value is INR 511 crores per share. Right now, the ship is around 82, 83 percentage of physical progress -- I would have already accrued most of it's INR 450-odd crores, I would have already accrued. So what you're trying to ask, you may not get a clear answer if I -- unless I correlated with the physical progress. So delivery, as far as you are concerned, I mean, in terms of revenue accrual, it's of no -- I'll put it in a different fashion. I understand what you're trying to ask.
What kind of growth are we looking at in terms of revenue and over the next 2, 3 years is what I'm broadly asking.
Yes, I think that's -- my throat would have been better. Okay. In -- okay. See -- let me just get my thoughts clear. We were around INR 1,756 crores in FY '22. In FY '23, we went to INR 2,561 crores. In FY '24, 9 months, we already touched INR 2,577-odd crores, which we have already surpassed the last year's. Okay. Now that we are halfway into this thing, we should be touching plus INR 3,000 crores during the current financial year. Now -- the high -- big ticket items of this INR 23,792 crores is P-17 Alpha project. The P-17 Alpha project is a INR 19,000 plus crores, INR 19,293-or-something crores, INR 19,293 crores project. And that the first ship is just a 65%, the second ship is at 54% and the third ship is at 45%. The first ship has got still room before she touches around 75% to give more revenue to the company. The second and third ship are actually touching, going to touch the peak now, considering that is a situation, for the moment, I'm just discounting the [indiscernible] project, that is ISW and survey vessel.
Between the P-17 Alpha alone and supported by the other 2 projects, we should be giving us a revenue growth of plus 25%, around 20%, 25% at least for the next 3 years.
So you are looking at broadly INR 3,800 crores to INR 4,000 crores by FY '24, '25, and say, INR 5,000 crores by FY '25, '26?
At least 1 year -- see, I had -- in my initial listing, I had mentioned that the current order book, excluding what is likely to come, that is for anybody to guess. The current order book will finish by FY '28.
So you're guiding a 25% CAGR growth for the next 4 years, sir, broadly? Can you look at that?
Next 2 years.
Next 2 years?
Next 2.
Next 2 years, 25% CAGR growth, broadly.
Normally, this question is asked a little later towards this. And the next question, somewhere it will come about margins. Okay.
So this is Rohit Natarajan from Antics Stockbroking. So my first question is, this year, the awarding from Navy was a little bit low. I think the next-generation corvette has been there for some time. We've been talking about it. But the awarding seems to be a bit on a slower side. What exactly is the reason?
See, the government revised the Defense Procurement Policy, DPP, in 2020. As per the policy, from the time an AON is issued to the time RFP -- AON is obtained to the time the RFP is issued, there's a 30-month slack, 30-month period. Now we have been pushing Navy. Navy has been pushing themselves. Ministry has been pushing Navy. So all put together, our current -- as we are keeping a very close track of the particular project, our appreciation, as I mentioned, the RFP is likely to come out in June, July this year. Does that answer your question?
Yes.
Officially, they are well within the time because June, July will come to around 26 months, 26 or 27 months. They are well within the time. But they need the ships. We need orders also. So they are pushing themselves. The case is being processed on a fast track -- Statement of Technical Requirements are ready. Now it's only the process, which now we are in March end. So I expect around 3 months more. June, July, it could come out.
The reason why I ask you this question is the other 2 big shipyards, they are now also keen to explore small-ticket orders. Because there seems to be some sort of a slowdown in order inflows, and now they are looking at low-value platforms as well.
See -- there are 5 -- 6 of us, 4 different shipyards, Cochin Shipyard and L&T. Right now, all of us have got a reasonable amount of orders. So that desperation has not yet come in. And for projects like the next-generation corvettes. Navy, there's a capacity assessment and the eligible shipyards are decided on certain conditions. So I think I had mentioned before, for the NGC, there will be only 4 players in the market -- I mean, in the game. So we don't -- 4 shipyards and also the order being split between 2. I think even if you take a simple probability factors also, we stand a very good chance.
Got it, sir. Sir, my next question is that you talked about the capacity augmentation to 24 vessels by FY '25. And currently, you can do platforms of almost like 20 vessels at this point in time. But you also made something closer to your -- the closing remarks, you said, your order backlog, you want to keep it INR 240 billion, INR 235 billion. But you're adding up capacity as well. So do you think is that some sort of a conservative message you're sending out? Do you want to add more order backlog? I mean, want to grow up much more higher from the current levels? Is there something of that sort that you have in mind?
I'll explain. In the shipbuilding, the major assets are the dry docks and the building berths where the initial construction of ship is carried out, where the occupancy period is long. Once the -- that's called the prelaunch phase. Once that is complete, the ships come out and get on to the jetties and berths where the outfitting happens. Our intent of increasing the capacity: one, was at no point should we be found wanting in case more orders come; second, we will not let this capacity, enhanced capacity idle because the way we look at it. I had mentioned with confidence that we'll be getting commotion shipbuilding orders. And that is one place where we just cannot afford to slip a date. So we didn't want to land up in a situation wherein we have orders and we don't have capacity to do it. Third, even when we had a capacity of 20 ships, even at that point of time to facilitate concurrent construction, we had gone in for a partnership with the private shipyards. And it's a very successful partnership.
I mean -- it's all open source information, nothing confidential about it. We had partnered with a major Indian private shipyard -- 3 of our ships for part construction, very effective. All the ships are back in GRSE premises right now getting readied. So capacity is not a constraint. Why enhancement? is to cater for more and more [indiscernible].
Now coming to the figure which you had mentioned. I myself had mentioned that our intent at this moment is to -- I use the term at this moment because the -- let us take NGC project, which is a big ticket -- first big ticket thing that is going to come from the Navy. The order would come in a conservative -- will come only by mid of 2025. From mid of 2025, for the revenue to start coming in, it will be '26 end because the initial period, not much revenue comes in. It's only the design proprietary work, order placement for equipment and all. That is the reason I mentioned that I would like to -- we would like to maintain -- once that happens, and if you get -- let us take a situation, suppose if you're getting P17 Bravo, then the entire game changes. Let us hope for that.
Got it. Sir, my final question will be on why did you avoid next-generation destroyer at your prospect market? Is destroyer out of your bandwidth as such to be done? Is GRSE really thinking about destroyer or maybe such advanced vessels on cards?
In today's scheme of things, what was earlier called as a corvette because I've served in corvettes and we have now built corvettes also. What was called as -- I will just build up to what you're trying to ask. So because what was called as a corvette was just about 70 meters long and with a displacement of just about 1,000 tonnes. And the last project that we completed, the anti-submarine shallow water craft -- anti-submarine shallow corvette, it's around 110 meters long. That's also called corvette. Now coming to the frigates. We have built earlier the P16 Alpha project, the Brahmaputra-class project around 10, 12 years back. Weapon package-wise at that point of time, called -- termed as a frigate, but a conservative frigate. What we are building today the P-17 Alpha is the most advanced frigate, absolutely weapon intensive.
So the difference between frigates, destroyers, that band of ships is reducing. We have full capability to construct destroyers. But at this juncture, the next-generation destroyers -- at this juncture, the need is very much there, but the processing of the case for AON and this thing, it is still in liquid from. It is a bit away. It's a bit away, as in it could be 2 to 3 years away. And when that situation comes, we'll definitely be pitching. And we'll be one of the shipyards who would be shortlisted for this project. These are our expectation.
Sir, Ramesh Bhojwani from Mehta & Vakil. You have made an all-encompassing presentation. A few clarifications I wanted. One, do we have the technology and the capability to build and deliver stealth ships? This is from the defense point of view.
Okay. We are already building stealth ships. What we are building now, the P-17 Alpha is a stealth ship. It's called P-17 Alpha stealth frigate. So India, in general, Indian shipyards in general and GRSE in particular, specifically, we have the full capability to build the stealth ships.
Excellent. And secondly, do we also have the capability to build submarines?
In case of submarine building, there are 2 Indian shipyards -- 2.5 -- 2 Indian shipyards, that is Mazagon Dock, your neighbors here, fully capable, proven capability in building submarines. Hindustan Shipyard, right now, they are in the submarine repairs. But the very fact that they can do repairs, which means with little augmentation, they can do submarine building. Larsen & Toubro Shipyard, they invested heavily into submarine design and building, and they have been supporting Navy in for the project -- the other project. So in -- that's why I said 2.5. 2.5 shipyards already exist. For us, at this juncture, we are not looking at submarines.
We are good with the surface ships. And Navy is, even today, Indian Armed Forces, definitely Indian Coast Guard, and mostly Navy, they are surface platform oriented. And that is our specialty. So we would like to retain that core strength.
Because we have a very, very vast coastline. And the dangers from all the 3 sides are exponentially up. That was my reason of asking the question.
Submarine, at this juncture, no. I'll tell you one more thing, that we are on the same page. See, any -- shipbuilding prowess doesn't come overnight, any shipbuilding capability or submarine capability. It requires decades and decades of expertise. The people may change, but the systems, the design capability, everything remains. So going in for [indiscernible] development of submarine building may not be in our business interest. Second, since you mentioned India has got 7,500-odd kilometers, 7,512 kilometers of coastal line, more than submarines what we need is ships, surface ships, anti-submarine platforms to protect the coast lines. That is our specialty.
Very true. Very true.
Do we have any more questions?
This is [indiscernible] from Whitestone Financial Advisors. So you've given us a good overview of the bid pipeline, the RFPs that are going to be out and you're going to bid for. If you could just help us understand what are orders you've already bid for already and waiting for the awards or something -- some sense, some kind of number to that?
See, at this juncture right now, I'm talking as on today, none of the RFPs of anybody's life which would be -- we have bid for a few export projects, again, through DLOC. And a minor -- that's what is available in the market today. Nothing much is available today, as on today. But 4 months, 5 months from now, the flow will start. There, I can just rattle out, INR 36,000 crores for the NGC, INR 3,000 crores for the next-generation survey vessels, around INR 1,200 crores for the multipurpose vessels; and P17 Bravo, when it comes, 7x10, INR 70,000 crores is available -- over the next year, next 1 to 1.5 years.
Right, right. Okay. And sir, my second question is regarding the commercial shipbuilding. If you could give some background as to what kind of orders, again there you are looking to bid? What kind of opportunity do we have on the commercial shipbuilding side as well, sir?
You're specifically asking about commercial shipbuilding...
Yes, yes.
In commercial shipbuilding, again, just to give you a background, China was a major player, is a major player, but China doesn't seem much interested in right now constructing smaller vessels, that is medium and smaller vessels. They're looking at much, much bigger sized platforms. And same goes for Korea or Japan.
So most of the European clients are looking either at India or at Turkey. So India has now become a destination because they know that the cost of production is going to be much cheaper. And India has been traditionally building warships. So the capability and quality exists.
Now to come to your specific question, we have got a very, very positive interest shown by clients from Netherlands and Germany. That's why I said, I would request little patience, maybe give us another 3 months and we'll tell you what we got because most of the -- see, the issues, I can tell the figures, but then most of them are at the final stages of negotiation. So even giving an indicated figure will not really help you. But just to give you the confidence that we are into this field and we're very confident of getting orders.
Okay. And is it fair to assume that margins obviously on the commercial shipbuilding would be higher than our existing margins?
Yes, they'll be higher, but we would like to start in a modest fashion. The reason being unlike -- we don't have to prove anything to in an armed forces because they know us for the last 64 years. But in commercial shipbuilding, we have to prove ourselves. What we have delivered so far is a passenger cum cargo vessel to Ghana and a few such projects. So we will be starting in a modest fashion. We will not go too aggressive with respect to getting margins. It is to prove our capability so that they gain confidence as we get more and more. That is the intent.
Amit Anwani this side from PL Capital. My question is on the order book. So you said the current order book is about 23,000 to 25,000. And we would like to maintain the similar level over next 3, 4 years. And the current book will be executed in the next 4 years, which means that we are factoring in the collective order intake of 23,000 to 25,000 over the next 4 years together. And the pipeline, which you highlighted looks quite robust, including the 36,000 next-gen project and then the next-gen vessel project and P-17 Bravo. So I think collectively pipeline looks more than 60,000, 70,000. So are we being conservative in order intake guidance? That is my first question.
Okay. Right now, it is around INR 23,792 crores. And with the way our revenue is growing, over the next 2 to 3 years, if you are not getting any new orders, this will deplete. What we are currently looking at as a first major order would be the Next-Generation Corvettes. The INR 36,000 crores is for 8 ships, and that is going to be split between 2 shipyards. So let us for a moment assume we become L1. Our order value would be around INR 22,500 crores.
Coming to P-17 Bravo. P-17 Bravo is a little more away. Little more away, maybe another year behind the NGC. That is a 7-ship project, again, going to be built by 2 shipyards -- split between 2 shipyards. While the order book value could be total, if you're putting 10,000 -- approximately INR 10,000 crores per ship, so INR 70,000. So the L1 shipyard would get around INR 40,000. There again, the revenue accrual will commence only another year or 1.5 year down after the project is -- I mean, the contract is concluded. So I would not say I'm going too conservative. I'm just perhaps trying to give you a reasonably realistic assessment.
All right, sir. Next question on the non-shipbuilding areas, which you highlighted, including the commercial ships, ship repair and the LD, and I think few more areas, autonomous areas. Would you like to highlight what could be the other potential over the next 5 years in each of these areas for us?
See, in this is the -- again, as a nation, the autonomous platforms, it's at a developmental stage. While we have been singularly lucky to have got -- already got an order and one more on the anvil, at least for the next 3 years, I don't expect major orders in the segment, they all would be coming piecemeal, maybe INR 50 crores, INR 100 crores to that level only.
But in case of commercial shipbuilding, yes, there is enough scope. Give us little more time, I'll be able to give you a clearer picture on the commercial shipbuilding. Maybe 3 months down the line, we can interact on that. On the -- my next vertical is the portable steel bridges, here, just taking to give you this thing, I had mentioned that the market share we own around 65%, overall market is low. We are getting over INR 100 to INR 120 crores from this segment alone. I mean, these are the small, small things which add up.
Ship repairs. Right now, it is just about INR 100-odd crores, 70 -- sorry, INR 85 crores to INR 100 crores. There is potential here but we have not yet got to break into the Navy. The moment we get a break into the Navy, which we will during the current year, and it's not current year, next financial year, that is the current calendar year, there the revenue will go up. Maybe again, our target -- internal target is by 2025, at least INR 200 crores, INR 250 crores from ship repairs.
Coming to the fourth or fifth vertical, that is the Naval guns. Very, very interesting segment, almost a monopoly in that particular type of guns. We already got the first break. We are capitalizing on that. There is enough opportunity there. We started with INR 250 crores for a 1.5-year project. More and more is coming in this segment.
Another area, which I have not touched upon before, is we also have a planned production facility at Ranchi, the Diesel Engine Plan at Ranchi. We had a license agreement with MT Rolls-Royce in Germany for assembly and testing of diesel engines, the revenue accrual was miniscule. But now we have gone to the next level. That is core production of engines. And why this is attractive. It will again take for it to fructify. Right now, the license agreement has already been signed. For it to fructify into an order, it will take another 3 years because the engines that are going to be coproduced by Rolls-Royce and GRSE are targeted to be fitted in Indian Naval ships, the smaller sized ships, that is the fast patrol vessels or the water-jet FACs.
So around 2 to 3 years down the line, we'll start getting orders in this segment also. And another area is we have also ventured into development of green vessels, green platform. This is an area, as I mentioned right now -- of course, there are very small players who are developing boats, but right now, only Cochin Shipyard and GRSE are there. If the government seriously looks at decarbonization and Go Green for all our ports and inland waterways, the sky is the limit. So I can only give generic statement with respect to this because these are all in developmental stage. I'm talking about green vessels and autonomous as well, other things are clear.
Last question on the import component in each of the platforms which you are executing. And any constraint with respect to raw material supply or any components which you might face or might be facing currently?
See, there was an impact. There was an impact but this was during -- first, it was because of the COVID situation. There was a definite impact with -- on the supply chain in general. And with respect to the import content, to be frank, not much because of COVID. Then came the Ukraine situation. Many of these -- our items come through sea, minimal impact. Why minimal impact is most of our items had already come in before that.
Second, the prices have gone up. But luckily, all our orders for the existing projects, all, I repeat, all the orders for the existing projects were placed before. They're all fixed price orders on our OEMs. So there has been no price impact. So in a nutshell, yes, there has been an impact, marginal impact on the project time lines overall, but not significant.
Sir, the 2 types of contracts, generally, nomination and bidding. If it's a nomination, I think we get a fixed margin over there. P-17 Alpha comes in that category. So the margins, I think that's the one question which has been left out. So the next INR 36,000 crores order, which is there, it's going to be on a bidding basis, it's a nomination. And how are the margins different between both of them?
I was actually speaking in a forum, which included the effective -- the Indian defense manufacturing industry. So my starting point was the transition from that cost plus and nomination era to fixed cost and the competitive era. This took almost a year -- a decade back and we are good with that.
To answer your question, yes, P-17 Alpha, we've got a nomination, 2 shipyards. All the other projects have been won on competition. The Next-Generation Corvettes project is on competition.
Sir, the nomination gives us a 7.5% kind of a margin. So when we are bidding and there the margins could be what range? Give some number on that. Because my future order book pattern is one thing. The change in the margin is also important for us to understand, so?
See, suppose if -- I'll just take 2 projects so that you understand, 2 projects on competitivity. There's going to be a waterjet FAC project for 22 waterjets FACs for Navy. There are around, I think, 5 plus to 7 shipyards. The Next-Generation Corvettes 4 shipyards. Our bidding strategy will be completely different for both. In case of the -- if we intend at that point of time to win the contract, the waterjet FAC, I will go for very low margins and then focus on efficiency, concurrent construction, blah, blah, blah.
In case of NGS, my strategy will be totally different because there are only 4. And there are several places where I don't have to invest because capability, capacity, infrastructure, design, everything is available with me. So in that case, the margins are definitely -- the bid margins when we bid, the margins are going to be on the higher scale as compared to the other person. But then the fact remains, it is competition. This is the way it is going to be for every shipyard. I mean, at least for the shipbuilding industry.
Sir, one more question. You have increased the authorized share capital of the company just recently, right? So what are we looking at, meaning?
See, this -- at this juncture, I can only state that this is a government, the Deepam directive. We will provide further clarity on this as asset evolves. At this juncture, I can only state that this is -- we are a government company, it's a directive of the government, come through Deepam and we'll provide further clarity on this as it evolves, maybe in the next interaction.
Okay. Sir, one more, if I can chip in, and this is more of -- well, we have -- many of us here are shareholders of the company as well as investors. We have been holding the company shares for like many years now, maybe 3, 4 pre-COVID days. We have seen the journey going through and the entire quarter-on-quarter run-up, which we had thought of is actually getting delivered.
Again, going forward, we see the INR 23,000 crores order fructifying over the next 4 years. So just as a thumb rule, I'm not trying to pinpoint numbers or anything. We are just benchmarking that this year, if we do INR 3,000 crores, we do INR 4,000 crores revenue, INR 5,000 crores, INR 6,000 crores, INR 7,000 crores, that's a broader track on which thematically we are thinking. Is our thought process more or less on the right path or we are anticipating too much or just a ballpark?
If I were sitting on your chair only to make -- I would be completely in agreement with you.
Sir, we are -- yes, we are on the other side. So just want to get a...
Sir is telling something, that is...
Sir, what is your opinion? This is our simple mathematics. 4, 5, 6, 7 comes to 22,000.
Sir, mathematics and logic, both are matching. There are in [indiscernible].
Okay. And sir, roughly...
Sir, unless -- I'll put it like this, unless something worse -- I mean, unforeseen happens and the thing collapses or let us say, there's another war or if something catastrophic happens, we are on track as to what he was mentioning.
Sir, just one question. Do we have a capacity in next 2, 3 years to go INR 10,000 crores per year in -- after '28?
That is the -- seriously, that is the intense. Now again, it is not a -- I can confidently state -- I mean, I can comfortably state because it is an open-source information. We are today -- today, we are a Miniratna Category I Schedule B company. We aspire to be Navratna company and for me to -- for us to be a Navratna company, what you are mentioning is exactly what we are looking for. Capacity-wise, there is no constraint. Capacity-wise, absolutely no constraint.
And sir, regarding the raising and the authorized capital, I think that you must have some thought process why you required to raise the -- Deepam has told you to raise the capital but...
So just give us -- I understand your thought. Just give us a little more time, let little more clarity emerge, we'll definitely brief you. Just give us 3 more months. By that time, we'll know exactly where we stand. This -- at this juncture, I would like to limit my answer to that.
Sir, in other way, do you require a capital or do you require a debt or anything for future expansion?
Not at this juncture. We don't plan, we don't have any requirement at this juncture for raising capital or going for debt.
Okay. Sir, Board meeting has been postponed to 21st March. Is it also from Deepam instruction?
No, it is because of our own constraints, because we had a couple of cases which it had to be put up to the Board. We were not ready with that because some of the -- we are executing -- I'll just tell you because since you asked. We are just executing a project for the Navy, the Next-Generation Offshore Patrol Vessel. Certain procurement cases, high-value procurement cases are going beyond my direct financial path. So we had to go to the Board for getting approval. Some clarifications were still pending. That is why the delay. I think now it's on 21st? 21st or 22nd?
21st March.
21st. So we are good to go further. No other reason. There's nothing also to do with -- any other questions?
I'm Amit Dixit from ICICI Securities. I have -- most both of my questions have been answered, just few ones. So you indicated from the order book and from the execution whatever we hear. And of course, we are expecting orders of Next-Generation Corvettes and P-17B. Will there be a phase, let us say, FY '27, '28 when the execution will drop significantly because now we will end possibly at 7,000 whatever is being mentioned. But going ahead, the revenue will take time to pick up essentially. So do you expect this execution to drop or before that, you expect NGC, et cetera, to pitch in or some other avenues that you have highlighted?
What I think mentioned in passing, I'll just reiterate. The Next-Generation Corvettes from the time the RFP is issued, it will take a year for the contract conclusion logically, a year. Now the way Navy is moving it could even be 10 to 11 months. Let us take a year. So that would be mid of 2025. From then, for the actual -- the revenue to be recognized, accrued, it will take another year. Another year to another 1.5 years. That is when the ship will start from 10% to 15%, 20%, whatever is at sea.
So that puts us somewhere in 2027. That is when our current orders -- existing order book only. I'm not talking about what we are commercial shipbuilding, other verticals, existing order book once it starts depleting, that will get padded up by NGC.
Now P-17 Alpha, P-17 Bravo is about a year behind NGC. So once NGC starts in a, let's say, an aggressive way with respect to revenue recognition, the P-17 Bravo will start giving something, and that will peak during 2029, '30. This is our current estimate. At this juncture, I'm not even talking about NGSV or the smaller project or waterjet FAC, only the big ticket.
Got it, sir. The second question is essentially on the increase in capacity from 20 ships concurrently to 24. Is there any incremental CapEx that you have to do? Or -- I mean, most of it is done. If you can also highlight the incremental CapEx for next 3 years or 4?
I'll just give you a background and then I'll come to this. See, we had done a major CapEx infusion somewhere in the latter half of the last decade, around INR 610 crores. From then onwards, as a strategic decision, we decided that we'll invest maybe a modest INR 40 crores to INR 50 crores every year, replace the equipment and so on. So it is with that strategy we have been moving. In between, we have procured a crane for around INR 150 crores.
Now what we intend doing for the next 3 to 4 years is to retain the strategy of INR 50 crores to INR 60 crores, that is depending upon the need, INR 50 crores to INR 60 crores per annum at least for the next 3 years, we have projects in hand. And for this capacity enhancement, I'm not sure whether you remember or not, we had taken over a facility from Central Inland Water Transport Corporation that is called our Rajabagan. It's a separate fully dedicated production unit. And perhaps that is the only facility in India today, which is dedicatedly for small and medium-sized warships.
Well, this was a beautiful facility with multiple docks and slipways which are actually required for shipbuilding, it was completely in deformed condition. So what we had done was, we have gradually developed it. At this juncture, around 70% of it is -- the facilities are utilizable, which mean we are utilizing, we are constructing ships there. Why I mentioned calendar year '25 for increasing to '24 is by rejuvenating the balance of 30%, which we are already executing. I mean, executing as in we're already doing the refurbishment. It is not capital intensive. This will come into -- come within our overall plan of INR 50 crores to INR 60 crores per annum. To answer your question, no major capital infusion unnecessarily required at this juncture for capacity enhancement.
Sir, I have a follow-up question. Sir, just a follow-up question. So with regards to revenue, okay. So now the current order book is close to INR 23,000 crore, INR 24,000-odd crores. And in 9 months, we've already booked a revenue of INR 2,600 crores. So now as you mentioned that in the shipbuilding cycle, majority of the revenue is already built in during the mid-cycle, right? There is a peak and then there's a decline in revenue.
Now most of the order book, the ships, I believe, are already in the advanced stage. They would have crossed that line, right? So given this, do you think the peak revenue for us from the current order book has already been built in, in this year? Or like you also stated earlier that you would see a CAGR of 20%, 25% for next 2 years. So is that possible because I feel most of the ships would have crossed that peak revenue booking cycle, right?
I'll just take 3 projects. The fourth project, NGOPV is still in a nascent form. It has just achieved around 10%, hardly any revenue regulation. I'll just leave that aside. Coming to the P-17 Alpha, the first ship has touched 65%. And I had mentioned that there is still room -- enough room for value to come in into the project, up to 70% to 75%.
In case of the second ship, it is right now at 65% -- sorry, 54%. 54%, 55%. That is actually at a pace -- I mean, at a stage where it is giving us, and that would continue for the next 1 year.
The third ship is only at 44%, 45% -- 44%. And if you just look at the delivery time lines also, the first ship is planned to be delivered only by August. That means maybe July, August next year. The next ship is February 2026 and the third ship is August 2026. So I think you should be assured that all these 3 ships are at the correct phase where they'll start giving us returns in terms of revenue.
And this will be supplemented by the other ships. See this waterjet -- Anti-Submarine Warfare Shallow Water Craft Project is a each-ship project. First ship is at around, I think, 80% -- 77% to 80% and the last ship is at 15% construction. So they will all mature where they will pad up the revenue.
So is it right for me to assume that from the current order book, the peak revenue is going to be somewhere in FY '25 and then it will start tapering down? Obviously, you'll have other ships that will add. But from the current order book, FY '25 would be the peak revenue?
See, FY '25 and FY '26 because in FY '26, I had mentioned the P-17 Alpha deliveries one is in February '26, and the second one is August '26.
Sir, could you please throw some light on lending platform dock? Who all are our [competitors] and why are we, to a certain extent, hopeful on it?
Landing platform dock originally conceived as the 4-ship project, high-value project. Each ship expected to be to the tune of INR 18,000 to INR 20,000 crores. The shipyards who could be in contention for this is Cochin Shipyard, Larsen & Toubro, and HSL. But again, I would like to give you with the reality check that this has been going on for the last 10 years. This project has been. That's why we are not factored that in any of our projections.
So what makes you hopeful, sir, to mention now?
No, what I mentioned was that it has been -- this project has been under discussion for the last 10 years. So it may happen, it may not happen at this juncture, we don't know, neither does the Navy know, though they have a requirement. See, the project approval of necessity is accorded based on the fund availability also. So the priority automatically goes to projects like corvettes or frigates or even the Next-Generation Destroyers, which could come even before the LPD. This is my assessment. Let us see. What else?
Sir, one more question. Can you throw some light on the export opportunity with regard to the lower value ships and all those?
Export opportunities are there -- I mean, I'll just give you what we have already achieved. Already achieved means where we are the L1 waiting for the orders to -- the contract should be signed. One is for a [indiscernible] for the Government of Bangladesh and also for ocean-going tug through the LOC for the government of -- these -- the order values are ranging between INR 150 crores to INR 200 crores.
Apart from the smaller shipbuilding? China or Japan...
No, these are small ships. Okay. On the commercial ships, what we will be targeting just so that you're on the -- we are all on the same page. We will be targeting multipurpose vessels ranging from 80 meters to 120 meters length and tankers. Tankers means small tankers, not the large tankers, which are to the tune of around 100 to 120 meters length.
At this juncture, as ma'am had asked, I said I will not be -- I should not be giving you a clearer picture than this because we are in the stages of negotiation. Maybe next time when we met, I'll be able to give you better clarity.
Other nations have shown interest, like some of our friendly foreign nations have shown interest in smaller platforms, that is weapon platforms, but defense exports have -- government has got a major say in that, like, let us say, today, Maldives or Sri Lanka or Mauritius or Seychelles want the ship, the routing is through government.
Yes. So just one question on margins. You anticipated it very early in your interaction. Just looking at how margins will pan out from here over the next 3, 4 years?
Could you please...
Yes. My question is on margins, yes. So shipbuilding goes through phases where value addition is different. So are we looking at stable margins or increasing margins going ahead?
At this juncture with our major revenue coming in from warship -- shipbuilding, I'm not keeping the other verticals because the margins are higher there, but they hardly contribute to 5% -- less than 5% of our overall revenue. We will be able to provide you steady margins as what we are giving now, neither more nor less at this juncture unless some policy changes are there.
Just one clarification to the gentlemen on this side, when he indicated 4, 5, 6, 7 as a likely growth path for your revenue, you said, yes, that's very much possible and to the lady on this side, you indicated that -- when you asked that the peak revenue might happen in '25, '26, you concurred with that as well. So I'm slightly confused, which is it?
If everybody is concurring even I concur, no problem. This side, that side and central has concurred. Who am I to...
I'm not concurring, I'm asking for a clarification, which is it?
It is what sir was mentioning, it is logic. At this juncture, we don't see any delay. I said unless -- let us say, India suddenly decides to fight with everybody or some -- I mean, some global situation happens, we don't see any delay. So if there is no delay envisaged, then the order book is so much, the percent progress is so much, the order book remaining is so much. It is pure mathematics.
The final hypothetical, 4 years, your current order book is completely invoiced. And you are indicating that you intend to maintain your order book in the same corridor.
Absolutely.
So end of 4 years from now, your order book will look similar, INR 25,000 crores.
Or more. That's what we are targeting. Like if you -- I mean, it is, again...
But are we, therefore, looking at a discernible slowdown in revenue growth from 4 years from now?
At this juncture, no. At this juncture, no, because if you are getting an order for NGC, which we are hopeful, then there is no question of it coming down. And we will -- that is exactly the reason why are we getting into commercial shipbuilding? It is to pad up. In case there is a dip somewhere, pad it up with these orders.
But what kind of scale are we looking at for commercial shipbuilding perhaps in a 5-year time frame?
Five-year time will start -- maybe I cannot indicate the values, but we'll start with multipurpose vessels and tankers or smaller size tankers. And if the business is good and the margins are attractive, we'll invest more attention towards this. That is only inclusion because I don't think I could have a clear answer.
This is Harshit Kapadia from Elara Securities. Sir, could you give us a breakup on the order book number that INR 23,700 crores, what would be for P-17 Alpha, what will be for [SVC] and ASW callback?
Order book breakup between the various projects. What is remaining in P-17 Alpha? In P-17 Alpha, we have around INR 12,700 crores remaining. This is as of 31st December. In the Anti-Submarine Warfare Shallow Water Craft, we have around INR 5,000 crores remaining. In survey vessel, about INR 1,050 crores remaining. And in the OPV project, around INR 3,388 crores remaining.
Okay. Just of last...
So this I think should address the query by mam there that P-17 Alpha still contributes to almost INR 12,000 crores.
Absolutely, sir. Sure. Just final question on the commercial shipbuilding. One of the other PSUs have also mentioned that they also plan to get into commercial ship building. So this will be more of a competitive bidding for the same project? Or how is it geography-wise divided that you will be looking at Europe, the other PSU will not be looking...
See, with the -- these European owners not looking at China at this juncture for the platforms that we are looking. All of us, be it Cochin Shipyard, there only 3 of us who have shown active interest in the MDL. So what we have assessed so far is that as late yesterday, we had -- yesterday and today, the owners of a couple of companies are in my premises.
So they're not on competitive. They target a shipyard. They do an independent assessment of the shipyard, when they know that we are interested in commercial, they approach us. That is a strategy which they generally follow unlike a conventional government domestic warship building tender. So it is 1:1. If the price is satisfactory, if the classification society certifies us as competent, you are through if the price is mutually agreed.
Understood, sir. And just one question on the indigenization. Any more product, which you think would you be making in-house or you think you will be collaborating in the future, just like you have done for diesel engines? Any other product where we are looking into, which is of a high value, which could be of critical value that you can highlight?
In addition to diesel engines, we have in smaller size ships, there's something called a waterjet propulsion. And there are a few OEMs who are competent, Wartsila, Kongsberg, and so on, and Rolls-Royce. We have collaborated with Kongsberg. We have already signed an MOU. And now the MOU needs to be translated into a license agreement. What we have done for the engine. I expect another 3 to 4 months for concluding that.
Again, the potential there is that many of the platforms required by both Navy and the Coast Guard have waterjet propulsion. So -- and with the indigenous content -- with the government's thrust on indigenization, with the indigenous content above 50 or -- and if that becomes our criteria, we stand a good chance.
And also, since you talked about indigenization, almost all the autonomous platforms which are going to come -- right now you must have seen in news, many of the platforms are getting imported. That cannot go on forever. So I don't want to put any figure to that. Just to say there is future in that segment also -- and deliberately, we are collaborating only with startups. We are not collaborating with any major industry because that is economically suitable...
Sir, my question regarding when we came here, we saw a corporate film of GRSE. Within the film, there was -- you were carrying a document called Vision 2030. So can you elaborate for -- we want to be interested only in financial matters of Vision 2030. Financially, what is your vision?
Sir, it was like Dr. Abdul Kalam [Foreign Language], his thing is nothing -- I mean, there's no end to dreams, but the dreams should be realistic. We -- my company's vision is to become a Navratna company by 2030. Now to become a Navratna company by 2030, then we have to be a Schedule A company first in another couple of years. This year or next year or next to next year. And our current revenue of INR 3,000, INR 4,000 crores is nothing. So we aspire to be a Navratna company with a turnover of around INR 10,000 crores by 2030. It is an ambitious target, very, very aspirational, but it is not impossible. It is very much possible.
Simply putting INR 10,000 crores by 2030. 4, 5, 6, 7?
Why I have not put 15,000? Why I have not put Maharatna, which means....
Achievable.
Achievable, that is -- it is achieved. It is definitely achievable.
And sir, for achieving that INR 10,000 figure, what is your expectations from Government of India?
From government, expectation is clear. One is we want the P-17 Bravo project. Second, from our side, our own internal expectation is that we must win the 5 ships of NGC. We should become the L1. Third, none of our projects should cross -- existing order book should cross 2028. None of them should cross 2028.
Fourth, commercial shipbuilding, we should start on a right foot. If we start on the right foot -- I mean, right now, we had a tanker OEM who had come -- yesterday I mentioned that, we are afraid to give him a commitment because we got a multipurpose vessel owner who is about to sign a contract. So at this juncture, what I'm trying to say is that the opportunities and leads are plenty. So this is the fourth thing.
And fifth, of course, supplement this with all our other verticals. Because today, in -- among Indian companies, among all Indian companies put together, all, I say with confidence that we are the only fully diversified company. Among -- you take the private public, everybody put together, we are the only truly diversified, which means you talk ships, building, commercial ships, we have delivered. We will be delivering more. Ship repairs, you talk about bridges, which has got nothing to do with ships, weapons, diesel engines, so capability exists.
Do you have any more questions? Okay, I think that's it. Thank you so much, everyone. Thank you, Commodore Hari. Thank you, Mr. Dash. And thank you, Sandeep, sir.
Thank you, ladies and gentlemen. It was a pleasure interacting with you and looking forward to meeting you soon. And we will not let you down.
And I would request all of you to join with us in IT.