Mazagon Dock's ₹452 crore deal with Sri Lankan shipyard will boost India's maritime power: Here's how
Mazagon Dock Shipbuilders Limited (MDL) picked its first international acquisition with a controlling stake of Colombo Dockyard PLC (CDPLC) in an all-cash deal capped at ₹ 452 crore.
The acquisition will strengthen Mazagon's position in the ship repair and shipbuilding industry by unlocking operational synergies, enhancing research development capacities and expanding market reach, the defence public sector undertaking said in a regulatory filing.
The deal is expected to be completed within 4 to 6 months, with the acquisition being the first instance of an Indian shipyard, both state-owned and private, acquiring a shipyard overseas, according to Moneycontrol.
Colombo Dockyard PLC is a publicly listed company in Sri Lanka. It is engaged in the business of shipbuilding and ship repair for over 50 years, the company is listed on the Colombo Stock Exchange.
Captain Jagmohan, chairman & managing director (CMD) of Mazagon Dock Shipbuilders Limited told Moneycontrol, "This is not just an acquisition, it is a gateway.'
'It marks our first international foray and reflects our ambition to transform into a global shipbuilding enterprise. With Colombo Dockyard's strategic location, proven capabilities, and strong regional presence, this step will position MDL as a key player in South Asia and lay the foundation for our emergence as a global shipyard," he said.
An MDL spokesperson also mentioned that the Colombo Dockyard offers Mazagon Dock a strong operational foothold in the Indian Ocean Region (IOR), which is a major maritime corridor in the world.
"With this acquisition, MDL positions itself not only to strengthen its presence in the region (IOR) but also to enhance its competitiveness in the global shipbuilding and marine engineering arena," the spokesperson added
Colombo Dockyard has been around since 1974 and specialises in manufacturing offshore support vessels, cable-laying ships, tankers, and patrol boats for several countries, including Japan, Norway, France, the UAE, India, and several other African nations. "It is the only shipyard in Sri Lanka that offers services ranging from in-house design and construction to advanced repair and marine steel fabrication," the MDL official said.
According to the company financials, Colombo Dockyard reported losses of around ₹ 70.7 crore in 2024. Onomichi Dockyard, which currently controls the company, applied for financial relief from the Japanese and Sri Lankan governments.
The deal with Mazagon Dock Shipbuilders is expected to benefit Colombo Dockyard. "With MDL's support, particularly in technology support, access to Indian supply chains, and entry into Indian and allied maritime markets, Colombo Dockyard can hope for a financial turnaround and long-term growth," an MDL official told The Times of India.
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