Mazagon Dock marks first foreign acquisition with $53 million Colombo Dockyard deal
In its first-ever
international acquisition
,
Mazagon Dock Shipbuilders Limited
(MDL) announced on Friday that it will acquire a controlling stake in
Colombo Dockyard PLC
(CDPLC), Sri Lanka's largest
shipbuilding and repair facility
, in a deal valued at up to $52.96 million.
Located within the Port of Colombo—one of the busiest transshipment hubs in the Indian Ocean Region—CDPLC provides MDL with a strategic foothold in a critical maritime corridor, India's leading
defence shipyard
said in the announcement.
"With this, MDL begins its transformation from a domestic shipbuilder to a regional maritime player with global ambitions. Aligned with
Maritime Amrit Kaal Vision 2047
, this move strengthens India's regional maritime influence and expands MDL's global reach," MDL said.
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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.
Hindustan Times
10 hours ago
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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.'
Time of India
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Mazagon Dock's Lanka deal to give India big foothold in region
NEW DELHI: In a major development, Mumbai-based defence shipyard Mazagon Dock Shipbuilders Limited is poised to acquire a controlling stake in Sri Lanka's largest shipyard, Colombo Dockyard PLC (CDPLC), in a deal worth almost $53 million. The move marks the first international acquisition by India's largest shipyard that builds submarines, warships and other vessels, and will provide it with a 'strategic foothold' in the Indian Ocean Region (IOR). China, of course, has made deep strategic inroads into Sri Lanka. Chinese Navy's expanding presence in IOR, along with its hunt for additional logistical hubs in the region, has emerged as a major security challenge for India. The $53 million investment will be carried out through a combination of primary infusion and secondary share purchases, including the acquisition of shares from Onomichi Dockyard Co Ltd, the current majority shareholder. Lanka deal to herald our emergence as global player: MDL Upon completion, subject to customary regulatory approvals and closing conditions, Colombo Dockyard PLC (CDPLC) will become a subsidiary of Mazagon Dock Shipbuilders Limited (MDL). Mazagon Dock chairman and managing director Capt Jagmohan told TOI that the proposed acquisition of a controlling stake in CDPLC, which has been approved, is a "gateway" towards achieving the shipyard's ambition of transforming into a regional maritime player first and then into a global shipbuilding enterprise. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Gorgeous Women, Ranked BigGlobalTravel Undo "With CDPLC's strategic location at Colombo port, 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," Capt Jagmohan said. CDPLC has more than five decades of experience in shipbuilding, ship repair and heavy engineering. "It has a track record of delivering complex offshore support vessels, cable-laying ships, tankers and patrol boats for clients across Japan, Norway, France, the UAE, India and several African nations," another MDL official said. CDPLC is currently pursuing a pipeline of orders over $300 million, which includes cable-laying ships, multi-purpose utility ships and newbuild fleet support vessels. "With MDL's support, particularly in technology sharing, access to Indian supply chains, and entry into Indian and allied maritime markets, CDPLC is well positioned for a financial turnaround and long-term growth," the official said. MDL, on its part, continues to do well in India. In partnership with German company ThyssenKrupp Marine Systems (TKMS), MDL is on course to bag the mega project to build six new stealth diesel-electric submarines for the Navy. The initial cost of these submarines, with both land-attack cruise missiles and air-independent propulsion (AIP) for greater underwater endurance, was estimated to be around Rs 43,000 crore when it got the 'acceptance of necessity (AoN)' by the defence ministry several years ago. It will now be around Rs 70,000 crore, as reported earlier by TOI. Another major contract for MDL in the pipeline is the proposed construction of another three French-origin Scorpene submarines with AIP at a cost of around Rs 38,000 crore. These three new submarines, if approved, will add to the six Scorpene or Kalvari-class submarines already built at MDL for over Rs 23,000 crore.
