Presentation done at CII West meet on MSME meet Dec 17 @ Taj Mumbai India on opportunity for Startups / SC &SY /SMEs in Defense Shipbuilding

1. 07-12-2017
MSME/ SME VISTA OF OPPORTUNITY
TO PARTNER IN DEFENSE
SHIPBUILDING GROWTH STORY
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2. 07-12-2017 2
70% of the CII members belong to the MSME
sector and are directly served by 64 offices
spread across India & institutional
partnerships with 312 counterpart
organizations in 106 countries

3. G.O.I Flagship
Schemes
implemented in
GRSE
Leverage to
MSMEs/ SMEs
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4. INTRODUCTION
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IN PURSUIT OF EXCELLENCE
and
QUALITY IN SHIPBUILDING

5. GRSE FOOTPRINT ACROSS EASTERN INDIA
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6. GRSE AT A GLANCE
• Founded in 1884
• Taken over by Govt of India in 1960
• Profit making PSU for last 22 years
• Mini Ratna Category 1 company since 2006
• Best Performing Defense Shipyard for four consecutive years
• “Excellent” MoU rating for five consecutive years
• Built first indigenous warship INS Ajay in 1961
• Delivered 94 warships to Navy & Coast Guard
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7. COMPANY PROFILE
- MAIN WORKS
- FITTING OUT JETTY
- RAJA BAGAN DOCKYARD
- PORTABLE BRIDGE UNIT
- DECK MACHINERY UNIT
- DIESEL ENGINE PLANT
(RANCHI)
SHIPBUILDING ENGINEERING ENGINE
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8. SHIPBUILDING SITES
MAIN WORKS FITTING OUT JETTY R.BAGAN DOCKYARD
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9. IN-HOUSE INFRASTRUCTURE
LARGE SHIPS
JETTIES (02)
DRY DOCKS (02)
WORKSHOPS (18)
BUILDING BERTHS (02)
SMALL SHIPS
DRY DOCKS (2) COVERED WET BASIN (1)
RIVER JETTIES (2) WORK SHOPS (3)
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10. INTEGRATED SHIPBUILDING FACILITY
FACILITIES AVAILABLE
GOLIATH CRANE (250 T)
DRY DOCK (10000 T, 180M)
BUILDING BERTH (4500 T)
 MODULE HALL
 PAINT CELL
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11. Product Portfolio
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IN PURSUIT OF EXCELLENCE
and
QUALITY IN SHIPBUILDING

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Frigate ASW Corvette
Fleet Replenishment Tanker
Fast Interceptor Boat
Landing Ship Tank (Large)
Water Jet FACP-17A Frigate
Inshore Patrol Vessel
P-28 ASW Corvette
Mauritius Offshore Patrol Vessel Fast Interceptor Boat
Landing Craft Utility

13. SELF RELIANT - DECK MACHINERY FACILITY
36MM U3 ANCHOR WINDLASS
FOR SURVEY VESSELS
HYDRAULIC WINDLASS 42
U3,PULL 11.5 TONNES
ANCHOR WINDLASS
LCA DAVIT 3 T RADIAL DAVIT
BOAT DAVITS RAIL/ RAIL LESS HTS
RAIL BASED LAYOUT OF
EQUIPMENT ON DECK (SINGLE
TRACK)
ELECTRICAL
HYDRAULIC
MOORING CAPSTANS
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14. 07-12-2017
ENGINE ON TEST BED TRIAL
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ENGINE ASSEMBLY IN PROGRESS
CAPTIVE - DIESEL ENGINE ASSEMBLY PLANT

15. ROAD MAP
What the
Shipbuilder/Customer
wants to see in its
suppliers
&
Bidding/Tendering
Opportunities –
A PRIMER
DOING
BUSINESS IN
NAVAL DEFENSE
SHIPBUILDING
SECTOR
(MSMEs)
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16. GRSE -BUSINESS ORDER
ORDER BOOK
Rs 21,000
Crore
(20 Warships)
ASW
Corvette
P-28
Landing
Craft
Utility
Ship
Water
Jet Fast
Attack
Craft
Stealth
Frigate
P-17A
Fast
Patrol
Vessel
P-17AFrigateASWCorvetteLCU-MkIV
WaterJetFACFPV/IPVFIB
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17. WARSHIP BUILDING SOURCING COST –
APPROX WEIGHTAGE DISTRIBUTION
Shipbuilder
32%
Sub Contract
3%
Import Material (*)
19%
Public Sector Material
(*)
32%
Private Sector Material
(*)
14%
Cost Distribution
Shipbuilder
Sub Contract
Import Material (*)
Public Sector Material (*)
Private Sector Material (*)
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(*) MATERIAL
CONTENT = 65 %

18. Broad Classification of Inventory/Business
Naval Shipbuilding Project
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Naval Ship
Building
Project
1. In plant
Capacity
Outsourcing &
Subcontracts
3. Machinery
Equipment
I. C & C*
Category
items
II. B Category
Auxiliary
equipment
III. A category
Main equipment
2. In Plant Raw
material
e.g I. Steel
2. Piping
3. Cabling

19. 1. Implant Capacity – Outsourcing &
Subcontract
 DMR 249A grade Steel-hull
structure fabrication & erection
 Erect and install ferrous and
non-ferrous (Cu-Ni, SS, Cu)
piping/plumbing
 Laying & connections of
electrical cables,
instrumentation, controls &
starters/panels
 Auxiliary marine equipment
installation
 Manufacture and erect ducting
and ventilation trunking for HVAC
 Ship compartment outfitting from
surface preparation up to
readiness and handing over
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20. 1. In-plant Capacity – Outsourcing &
Subcontract (Contd…)
 Stage of Ordering/Business opportunity:
 Post start of production / continuous basis through the Project
 New Concept - Mega Block Outsourcing / Mega Outfitting Subcontract
 Ordering Agency:
Shipyard’s own Outsourcing Dept through competitive bid on company web site/ tenders
 Acceptance/Quality:
• Shipyard’s Own QC Dept / TPI
• Navy’s representatives Trials Teams/ WOT
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21. 2. In-plant Raw material – Outsourcing
& Subcontract
 Steel –Plates, Bar etc.
 Piping – Ferrous, Non Ferrous
 Pipefittings
 Electrical Cables
 Electrical cable fittings – glands, brackets
 Various paints
 Website under vendors required category lists 578 different types
miscellaneous items
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22. 2. Implant Capacity – Outsourcing &
Subcontract (Contd…)
 Stage of Ordering/Business opportunity:
Complete bulk procurement initiated prior to start production / only replenishment of stock
done on continuous basis through the Project
 Ordering Agency:
Shipyard’s own Purchase Dept through competitive bid on company web site/ tenders
 Acceptance/Quality:
• Shipyard’s Own QC Dept / TPI
• As per purchase order through: DQA or IACS member inspected or NABL accredited
labs
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23. 3. Machinery Equipment – ‘C & C*’ Category
miscellaneous items
 Definition:
• COTS Items whose OEM or source of purchase is not indicated /
nominated by end user customer i.e Indian Navy
• The difference in C & C* items is that - in case of C* items the SOTR /
drawings are drawn by shipyard but approved by Indian Navy
• E.g: small valve, electrical small fittings, Pneumatic fittings, Allowance list
items, consumable items, fasteners, bellows, hose, insulation, rigging items
etc
 Website under vendors required category part of the lists of 578 different
types miscellaneous items
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24. 3. Machinery Equipment – ‘C & C*’ Category
miscellaneous items – Contd…
 Stage of Ordering/Business opportunity:
Complete bulk procurement initiated prior to start production / only
replenishment of stock done on continuous basis through the Project
 Ordering Agency:
Shipyard’s own Purchase/NCM Dept. through competitive bid on
company web site/ tenders
 Acceptance/Quality:
• Shipyard’s Own QC Dept / TPI
• As per purchase order through: DQA or IACS member inspected or
NABL accredited labs – 88 TYPE items approx
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25. 4. Machinery Equipment – ‘B’ Category
Auxiliary Equipment
 Definition:
• Important machineries whose name of shortlisted OEM or source of
purchase is indicated / given by end user customer i.e Indian Navy
• All items under these category undergo rigorous type testing for
ruggedness for conditions of environment, shock, EMI & EMC
• E.g: AC, Ref, RO Plant, Compressors, Switchboard, Imp Motors, Pumps,
critical starters, COTS natures Nav aids & Sensors etc
 Indian Navy- DOI site lists out items that require indigenization/scope if any
 As per new initiative at Ship yard the indicative list of imported items
under this category is also displayed on website under ‘Make in India’
impetus
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26. 4. Machinery Equipment – ‘B’ Category
Auxiliary Equipment– Contd…
 Stage of Ordering/Business opportunity:
Complete procurement by start production
 Ordering Agency:
Shipyard’s own NCM Dept. through competitive bid on Limited tenders
basis as per Navy’s recommended shortlisted vendors for these BNE.
 Acceptance/Quality:
• Factory trials: As per purchase order/DME/EEDQ/NCD through: DQA
(N) – 75 type items approx or DQA(WP) – 66 type items approx.
• Onboard/ship Trials: Ship Yard QC dept & Navy’s trials Team/WOT
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27. 5. Machinery Equipment – ‘A’ Category
Main Equipment & Weapon
 Definition:
• Mission Critical machineries & Weapon Sensors wherein Single vendor
nomination is given by end user customer i.e Indian Navy
• All items under these category undergo rigorous type testing for conditions
of environment, shock, EMI & EMC
• A capacity of the business house to provide maintainability, availability
and life cycle support of sub assembly over next 20 Years
• E.g: Main Engine, GTs , Gear Box, Weapon sensors, NON-COTS nature
Military communication sets
 Indian Navy- DOI site lists out items that require indigenization if any
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28. 5. Machinery Equipment – ‘A’ Category
Main Equipment & Weapon– Contd…
 Stage of Ordering/Business opportunity:
Complete procurement post signing of contract before start production
 Ordering Agency:
Shipyard’s own NCM Dept. through Tenders out as per Navy’s recommended
vendor or items provided as BFE to Shipyard.
 Acceptance/Quality:
• Factory trials: As per purchase order/DME/EEDQ/NCD through: DQA (N) or
DQA(WP)
• Onboard/ship Trials: Ship Yard QC dept & Navy’s trials Team/WOT
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29. MSME/ SME
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IN PURSUIT OF EXCELLENCE
and
QUALITY IN SHIPBUILDING

30. 1. MSME / SME IN MANUFACTURING SECTOR
(FIGURES OVERVIEW)
 Manufacturing sector in India (including MSME/ SME segment)grew at an
annual average growth rate of 9% during the period 2005-06 to 2012-13
 Largest share of employment after agriculture
 8 % contribution to India’s GDP
 45 % contribution to manufacturing output
 40 % contribution to India’s exports
 18 % out of 30% offset in defence procurement is through manufacturing
by MSME/ SME
 Projected incremental skill gap in India by 2022 is *103.02 millions
* sources: IMAC & AON Hewitt 2008-09
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31. 2. GRSE Nurturing Business Partnership:
MSMEs/ SMEs
 SME/MSME Procurement per annum : Rs 150 Crore about 34 % of total
 Outsourcing per annum: Rs 1100 Crore, about 64% of total production
and growing YoY
 Total number of MSME / SME vendors registered with GRSE: 628 out of 2044
total registered vendors; hence composition is 30.72 %.
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32. 3. GRSE IMPLEMENTATION OF POLICIES:
ENCOURAGE SMEs/Start-ups
GRSE is implementing PPP for SMEs Order 2012.
Following facilities / benefits given to
SMEs/Startups:-
 Issue of tender sets free of cost.
 Exemption for payment of EMD.
 Above benefits also extended to vendors registered
with NSIC under single point vendor registration scheme.07-12-2017
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33. 3. IMPLEMENTATION OF POLICIES TO
ENCOURAGE SMEs (Contd…)
 SMEs/NSIC vendors will additionally be exempted from
submitting SD
 MSMEs quoting prices within 15% of lowest eligible price bid of
other non-MSE bidder(s) shall be eligible for purchase
preference for 20% of the order quantity
 MSMEs owned by SC/ST will get a share of 4% of the above
20% exclusively, in addition to sharing of equal portion of
balance 16% with other non-SC/ST MSMEs.
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34. 4. GRSE’s VENDOR DEVELOPMENT -IMPETUS
 Initiatives adopted by the shipyard :
 Created a dedicated Vendor Development Department.
 A nodal officer has been appointed.
 Identified outsourcing avenues / products / processes.
 Most of the equipment / systems / fittings / yard material used
on-board ships built by GRSE are sourced indigenously.
 GRSE has clocked Indigenisation Index of 84.6%.
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35. 4. GRSE’s VENDOR DEVELOPMENT -IMPETUS
 Vendor rating/ weightage for gradation :
Procurement/Purchase: Quality rating (QR) Delivery
rating (DR) Experience Rating (ER)
Outsourcing/Subcontract: a)Financial Qualification
Criteria b) Performance Criteria c) Number of Trained
Manpower
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36. Conclusion
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IN PURSUIT OF EXCELLENCE
and
QUALITY IN SHIPBUILDING

37. 37
DPSUs SHIPBUILDING INDUSTRY

38. AGENCY TO CONTACT FOR BUSINESS IN
NAVAL SHIPBUILDING
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Tenders of
Directorate of
Indigenisation
for Import
Substitute
Tenders of
Purchase/
Commercial/
Outsourcing
Department
30% offset
clause for local
manufacturing
in India
Direct with Navy Shipyards OEM/ Big Manufacturers
(Equipment only) (Equipment / Material/ Services) (Foreign subcomponent/
Subassembly)

39. GRSE - EDGE & ADVANTAGE
PARTNERING FOR MARINE ENGINE
 DEP is spread over 63 acre area with factory shed of 23 acre
 Shipyard with engine assembly & testing capability
 Legacy of Collaboration with global Marine OEMs :- MAN-
Germany, BERGEN-Norway and now MTU-Germany
GRSE invites OEMs to partner for
Indigenisation of Marine Diesel Engine 07-12-2017
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40. SPIN OFF & SCOPE FOR SMEs
FORGED COMPONENT LOCAL SOURCING
 CRANKSHAFT
 CONNECTING ROD
 ROCKER ARM
 VALVES
 PISTON CROWN
 CAMSHAFT
 BEARINGS
 GEAR
 BOLTS
 BEARING CAPS
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41. Naval Shipbuilding
A Long Term Business Partnership
& A Very Long Value Chain
 02 years Onboard spares: Business order / cash flow due to replenished /
reorder at end of every second year : 02- 03 % of main equipment cost
 05 years Base and Depot Spares: Business order/ cash Flow due to reorder
at end of every fifth year for next 15- 20 years : 15 % of the main equipment
cost
 New vistas of opportunity in Product support/ Repair orders: Ships Normal
and Medium refit repair once every 04 years & 10 years respectively requires
overhaul of equipment – Potential business opportunity for overhaul and
third line maintenance by OEM/Vendors representative
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42. Good Websites for Guidance
What Shipyards/Navy Wants
‘Make in India’
GRSE
Potential Business
Indian Navy & CII
Indigenization
DGQA
Quality
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43. 43
NATIONAL POWER - SHIP BUILDING
NATIONAL POWER
MARITIME POWER
SHIP BUILDING INDUSTRY
NATIONAL RESOURCES
MANPOWER
MATERIAL
MERCHANT MARINE
INDIAN NAVY
PORTS / INFRASTRUCTURE

44. OTHER BLADE OF THE SCISSOR ?
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45. 45
1
2
3
4
PRICE DRIVEN
QUALITY
DELIVERY TIME
FINALE
Defense Maritime SectorCUSTOMER POINT OF
VIEW
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46. NATION BUILDING
THROUGH SHIPBUILDING
CONTACT US@
Vendor development:
mukherjee.t@grse.co.in
Local liaison at Mumbai
romumbai.dgm@grse.co.in
VISIT US@
www.grse.nic.in
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47. Come - Make in India
Thank You
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