Maersk to Order 1,000 Containers from DCM Shriram, Boosting India’s Bid to Challenge China in Container Manufacturing

The announcement is expected to be made on July 3 at Star Track Terminals’ Inland Container Depot (ICD) in Dadri, Uttar Pradesh, during an event attended by Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal. The event will also witness the unveiling and flagging off of two prototype containers manufactured by DCM Shriram at its Faridabad facility according to Maersk’s specifications. The order represents one of the most significant initiatives by a leading global container carrier to support the development of India’s maritime manufacturing ecosystem. It follows French shipping major CMA CGM’s decision earlier this year to place an order for six container vessels at Cochin Shipyard, the first such ships to be built in India.      The move comes ahead of the government’s planned rollout of a container manufacturing incentive scheme announced in the Union Budget. The Centre has earmarked ₹10,000 crore over five years to create a globally competitive container manufacturing ecosystem, identifying container production as one of seven strategic sectors targeted for expansion.      India’s push into container manufacturing gained urgency following severe container shortages during the pandemic, which disrupted export-import trade and exposed the country’s dependence on Chinese suppliers. China currently accounts for nearly 97 percent of global container production.

Industry executives note that containers manufactured in India are currently 30-40 percent more expensive than those produced in China due to higher material costs and limited manufacturing scale. The government is therefore working on a Production Linked Incentive (PLI) scheme that could provide support of $400-500 per container for eligible greenfield manufacturing projects.

According to industry sources, Maersk’s container order is contingent on the finalisation of the government’s policy framework, expected by August. The Ministry of Ports, Shipping and Waterways has already circulated a draft proposal for Cabinet approval.   State governments are also expected to play a key role. Gujarat, for instance, is developing a support package that includes capital subsidies, affordable industrial land, and a state-level top-up incentive linked to container production.   Industry experts believe that achieving manufacturing scale will be critical to narrowing the estimated $1,000 price gap between Indian and Chinese-made containers. They argue that initial investments and orders are necessary to build capabilities, improve efficiencies, and gradually localise the supply chain.

Maersk reportedly conducted extensive audits of 12 Indian manufacturers with support from teams from Denmark and independent auditors before selecting DCM Shriram. The focus was placed on quality, manufacturing processes, and the ability to meet global standards.      “Quality was the first priority. Shipping lines cannot afford to compromise on safety and reliability, particularly for equipment operating in harsh marine conditions,” an industry executive familiar with the project said. The initiative also aligns with the government’s broader strategy to strengthen supply-chain resilience. During a meeting with Maersk Chairman Robert Uggla in 2025, Prime Minister Narendra Modi is understood to have encouraged the company to explore container manufacturing in India to mitigate risks associated with geopolitical tensions and concentrated supply chains.      The upcoming order follows a memorandum of understanding signed between Maersk and DCM Shriram during India Maritime Week in October 2025. Since then, both companies have collaborated on technical specifications, procurement planning, and manufacturing processes, with Maersk facilitating exposure visits to overseas container production facilities.   The successful execution of the initial order is expected to pave the way for larger procurement commitments as India’s container manufacturing ecosystem gains momentum and policy support takes shape.