Latest news with #ColomboDockyard
Al Arabiya
2 hours ago
- Business
- Al Arabiya
India's Mazagon Dock Shipbuilders to buy controlling stake in Colombo Shipyard
Indian state-owned Mazagon Dock Shipbuilders said it would buy a controlling stake in Sri Lankan peer Colombo Dockyard in a deal not exceeding $52.96 million to grow its shipbuilding and repair business. The transaction, involving the acquisition of at least 51 percent equity in Colombo Dockyard, will close within six months, after which the Sri Lankan shipbuilder will become a part of Mazagon Dock Shipbuilders, according to a regulatory filing on Friday. Colombo Dockyard was not immediately available for comment outside business hours. Mazagon Dock Shipbuilders also builds warships and submarines, and the deal is seen giving India a strategic foothold in the Indian Ocean island nation where New Delhi and Beijing have been jostling for influence for years. For 2024, Colombo Dockyard's turnover was 25.45 billion Sri Lankan rupees ($84.89 million), according to the filing, while Mazagon Dock Shipbuilders' revenue for the year ended March 2025 was 114.32 billion Indian rupees ($1.34 billion).
Reuters
3 hours ago
- Business
- Reuters
India's Mazagon Dock Shipbuilders to buy controlling stake in Colombo Shipyard
June 28 (Reuters) - Indian state-owned Mazagon Dock Shipbuilders ( opens new tab said it would buy a controlling stake in Sri Lankan peer Colombo Dockyard ( opens new tab in a deal not exceeding $52.96 million to grow its shipbuilding and repair business. The transaction, involving the acquisition of at least 51% equity in Colombo Dockyard, will close within six months, after which the Sri Lankan shipbuilder will become a part of Mazagon Dock Shipbuilders, according to a regulatory filing on Friday. Colombo Dockyard was not immediately available for comment outside business hours. Mazagon Dock Shipbuilders also builds warships and submarines, and the deal is seen giving India a strategic foothold in the Indian Ocean island nation where New Delhi and Beijing have been jostling for influence for years. For 2024, Colombo Dockyard's turnover was 25.45 billion Sri Lankan rupees ($84.89 million), according to the filing, while Mazagon Dock Shipbuilders' revenue for the year ended March 2025 was 114.32 billion Indian rupees ($1.34 billion). ($1 = 299.8000 Sri Lankan rupees) ($1 = 85.4400 Indian rupees)
Hindustan Times
8 hours ago
- Business
- Hindustan Times
Mazagon Dock Shipbuilders acquires majority stake in Colombo Dockyard for $52.96 million
Mumbai: Mazagon Dock Shipbuilders Limited (MDL) on Friday announced its first international acquisition—a controlling stake in Sri Lanka's largest and most established shipyard, Colombo Dockyard PLC (CDPLC), in a deal valued at up to $52.96 million ( ₹ 452 crore). Mazagon Dock Shipbuilders acquires majority stake in Colombo Dockyard for $52.96 million The deal will include India's largest shipyard acquiring the shares of CDPLC's current majority shareholder, Onomichi Dockyard Co. Ltd, according to a press release. The Japanese company owns a 51% stake in CDPLC. After the acquisition is completed, CDPLC will become a subsidiary of MDL, the press release added. Mazagon Dock Shipbuilders has a market capitalisation of $15.12 billion ( ₹ 1,29,254 crore). It reported a turnover of approximately $1.13 billion ( ₹ 9,660 crore). Explaining the reason behind the acquisition, Captain Jagmohan, the chairman and managing director of the state-run MDL, said, 'With CDPLC'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 added, '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.' An MDL spokesperson said that the Colombo Dockyard offers MDL a strong operational foothold in the Indian Ocean region, which is one of the busiest and most geopolitically significant maritime corridors in the world. 'With this acquisition, MDL positions itself not only to strengthen its presence in the region but also to enhance its competitiveness in the global shipbuilding and marine engineering arena,' the spokesperson added. Colombo Dockyard has more than five decades of experience in shipbuilding, ship repair, and heavy engineering. The company has manufactured offshore support vessels, cable-laying ships, tankers, and patrol boats for many countries, including Japan, Norway, France, the UAE, India, and several 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. However, Colombo Dockyard has been in dire straits for some time. It reported losses of LKR 2.48 billion ( ₹ 70.7 crore) in 2024, according to Maritime Gateway, a shipping news portal. Onomichi Dockyard, which currently controls the Colombo Dockyard, had sought financial relief from the Japanese and Sri Lankan governments. In December last year, Onomichi Dockyard informed the CDPLC board that it planned to divest its 51% stake in the company. The takeover by Mazagon Dock Shipbuilders would, thereby, come as relief for Colombo Dockyard. With MDL's support, particularly in technology sharing, 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. Naval experts described the acquisition as a great strategic move by Mazagon Dock. Retired Commodore Rakesh Anand, MDL's former chairman and managing director, said the company has taken a big leap with the acquisition. 'It is a matter of pride for India. Our global footprint will be visible. The Colombo shipyard is important for ship repairs and shipbuilding. This is the first port after crossing the Suez Canal and is strategically located. A lot of repair activity will happen there, where MDL can now participate,' he added. A former vice-admiral in the Indian Navy, who requested anonymity, said, 'It is a fantastic, strategic move. Along with other players like Adani Ports, who have a stake in the Colombo port, this acquisition complements the other one and gives India a strategic advantage in the maritime space.'
New Indian Express
16 hours ago
- Business
- New Indian Express
Mazagon Docks to buy 51% of Colombo Dockyard for Rs 452 crore
Mazagon Dock Shipbuilders (MDL) has agreed to acquire a controlling 51% stake in Sri Lanka's largest and most established shipyard Colombo Dockyard for a consideration of Rs 452 crore, the city-based state-run shipbuilder said. "Mazagon Dock has announced a significant step in its strategic evolution with the approval of a proposed acquisition of a controlling 51% stake in Sri Lanka's largest and most established shipyard Colombo Dockyard PLC. The investment, valued at up to $52.96 million, will be carried out through a combination of primary infusion and secondary share purchase, including the acquisition of shares from the Japanese owner Onomichi Dockyard Co, the current majority shareholder," MDL said in a statement Friday. This marks MDL's first international foray and is a major milestone in the company's transformation from a purely domestic shipbuilder into a regional maritime player with global aspirations, the statement added. Strategically located within the Port of Colombo, Colombo Dockyard offers MDL a strong operational foothold in the Indian Ocean region--one of the busiest and most geopolitically significant maritime corridors in the world. Mazagon Dock has its facilities in the eastern sea front in south Mumbai builds frontline warships and submarines and has played a pivotal role in the Navy's modernization drive. The publicly traded Colombo Dockyard is the flagship of Sri Lanka's maritime industry and serves a wide spectrum of commercial and governmental clients across Asia, the Middle East, and Africa. Upon the deal completion, subject to customary regulatory approvals and closing conditions, the Colombo Dockyard will become a subsidiary of MDL.
Time of India
20 hours ago
- Business
- Time of India
Mazagon Dock Acquires 51% Stake in Sri Lanka's Colombo Dockyard for ₹452 Crore, ET Infra
Advt Advt By , ETInfra Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. State-owned Mazagon Dock Shipbuilders Ltd, India's biggest warship builder, has acquired a controlling 51 per cent stake in Colombo Dockyard PLC, in an all-cash deal for about ₹452 crore, the Mumbai-listed shipbuilder announced on is the first instance of an Indian shipyard, both state-owned and private, acquiring a shipyard deal will also give Mazagon Dock access to a full-fledged engineering workshop that Colombo Dockyard is building at Hambantota International Port owned by Hambantota International Port Group (Private) Ltd, a unit of China's state-owned China Merchants Ports Group. It will extend the service footprint of Colombo Dockyard to the southernmost tip of Sri workshop strengthens the service availability and speed of service to the clients, improving economics for the end located on one of the world's busiest maritime routes, Hambantota deep-water port allows Colombo Dockyard to offer afloat repair services to a multitude of vessels calling for transhipment, bunkering and other Dockyard is setting up the workshop at Hambantota International Port through Dockyard General Engineering Services, a fully owned subsidiary. The foundation stone for the engineering workshop was laid in August last acquisition of Colombo Dockyard was done through a combination of primary subscription and secondary acquisitions from the shareholders of Colombo Dockyard, including Onomichi Dockyard Co Ltd, a majority Dockyard, located in the Port of Colombo and listed on the Colombo Stock Exchange , undertakes shipbuilding and ship Dock, Colombo Dockyard and Onomichi Dockyard have signed definitive documents setting out the terms and conditions of the deal, which will make Colombo Dockyard a subsidiary of Mazagon acquisition will strengthen its position in the shipbuilding and repair industry by unlocking operational synergies, enhancing research development capabilities and expanding market reach, Mazagon Dock said.'It supports the company's long-term growth vision in the shipbuilding and repair industry,' the company acquisition is expected to be completed within four to six months, subject to fulfilment of customary closing conditions set out in the definitive documents, including receipt of statutory and regulatory Dockyard is Sri Lanka's top shipbuilding, ship repair, heavy engineering and offshore engineering facility, operating four graving dry docks with a maximum capacity of 125,000 deadweight tonnes (DWT).Mazagon Dock's purchase of Colombo Dockyard is similar to the strategy followed by India while nominating Adani Ports and Special Economic Zone Ltd, India's biggest private port operator, to construct a container terminal in Colombo Port, one of the busiest container transhipment ports in the region.
