Latest news with #CDPLC
Indian Express
13 hours ago
- Business
- Indian Express
Behind Mazagon Dock's Lanka deal: Eye on China, Colombo bailout plea
A strategic move to contain China's expanding footprint in the region, a Sri Lankan SOS for bailout, and a failing Japanese firm — these were among the factors that led to the Indian government-run Mazagon Dock Shipbuilders Limited's decision to acquire a controlling stake in Sri Lanka's Colombo Dockyard PLC under a US$ 52.96 million deal, officials have told The Indian Express. Announcing its decision on Friday, Mazagon Dock Shipbuilders Limited (MDL) had said: 'Located in the Port of Colombo, Colombo Dockyard PLC (CDPLC) gives MDL a strategic foothold in the Indian Ocean Region — a key maritime corridor.' CDPLC, listed on the Colombo Stock Exchange, is the flagship of Sri Lanka's maritime industry and serves a wide spectrum of commercial and governmental clients across Asia, Middle East and Africa. Officials from both the Sri Lankan and Indian governments worked overtime to conclude this strategic deal on Sri Lanka's largest shipyard, said sources. According to officials, CDPLC has been in dire straits for some time. 'Since it is 51% owned by Onomichi Dockyard Company Ltd, they initially sought relief from the Government of Japan, and thereafter from the Government of Sri Lanka. However, neither government could provide any financial relief to them,' an official said. At the end of November 2024, Onomichi Dockyard exited from CDPLC. At this point, officials said, the Sri Lankan government requested the Indian government to encourage Indian investors to look at Colombo Dockyard. 'A default by CDPLC would be serious for the Sri Lankan government as, out of the remaining 49% stake, around 16% is owned by their Employees' Provident Fund. Sri Lanka's insurance fund owns around 9%, Sri Lanka Ports Authority 5% and so on. A default would also have brought great financial distress and uncertainty for the workers employed in Colombo Dockyard,' the official said. 'A few companies, with strong credentials, expressed an interest in CDPLC. As per the due process followed for a listed company, MDL was shortlisted in view of its prowess in shipbuilding as well as its financial strength. Both these aspects are key for the turnover of Colombo Dockyard,' the official said. MDL's net worth, represented by its market capitalisation, is approximately $15.12 billion as of June 25, 2025. The company is almost debt-free. It has reported a turnover of approximately $1.13 billion, according to officials. MDL's decision is expected to significantly change the shipbuilding and ship repair landscape in the region. With CDPLC its first international venture, it is seen as a major milestone in the company's transformation from a purely domestic shipbuilder into a regional maritime player with global aspirations. 'It demonstrates the appetite by Indian industry, including PSUs, to acquire strategic assets overseas and to build investment-led partnerships,' the official said. On the other hand, MDL's controlling stake will serve as a force multiplier for CDPLC, said officials. MDL will bring an order pipeline for CDPLC from both domestic and international market for repairs, refits and new builds, they said. The move is expected to boost the existing revenue stream from the Indian sub-continent's ship repairs. A number of orders for which potential clients are approaching MDL can be diverted to CDPLC, the official said. On sharing of expertise, the official said both the shipyards possess enormous expertise garnered over the past decades. 'This strength can be leveraged for mutual benefit and can result in a win-win scenario,' the official said. The resources available at both the yards can be shared for mutual benefit. 'For instance, the detailed design capabilities possessed by both the yards can be leveraged for projects at MDL as well as at CDPLC,' the official said. CDPLC, which is currently under financial distress, can benefit from MDL's strong financial capabilities, thereby expediting the turnaround process. CDPLC will now be in a position to secure contracts which it missed earlier due to poor financial health, the official said. In a regulatory filing, the Mumbai-headquartered shipbuilder said the proposed acquisition would enable the company to strengthen its position in the ship repair and shipbuilding industry by unlocking operational synergies, enhancing research development capacities and expanding market reach. 'It supports the company's long-term growth vision in the shipbuilding and ship repair industry,' it said. The move comes amid concerns in New Delhi over Beijing's persistent attempts to expand its strategic influence in the island nation. China Merchants Port Holdings holds an 85% stake in Hambantota International Port Group (HIPG) and secured a 99-year lease on the Hambantota International Port (HIP) in Sri Lanka in 2017. In July 2024, CDPLC and HIPG signed an agreement to set up a full-fledged workshop at HIP. Shubhajit Roy, Diplomatic Editor at The Indian Express, has been a journalist for more than 25 years now. Roy joined The Indian Express in October 2003 and has been reporting on foreign affairs for more than 17 years now. Based in Delhi, he has also led the National government and political bureau at The Indian Express in Delhi — a team of reporters who cover the national government and politics for the newspaper. He has got the Ramnath Goenka Journalism award for Excellence in Journalism '2016. He got this award for his coverage of the Holey Bakery attack in Dhaka and its aftermath. He also got the IIMCAA Award for the Journalist of the Year, 2022, (Jury's special mention) for his coverage of the fall of Kabul in August 2021 — he was one of the few Indian journalists in Kabul and the only mainstream newspaper to have covered the Taliban's capture of power in mid-August, 2021. ... Read More
The Hindu
a day ago
- Business
- The Hindu
Mazagon Dock Shipbuilders to buy controlling stake in Colombo Dockyard
Colombo Indian government-owned Mazagon Dock Shipbuilders Limited (MDL) has announced its decision to buy controlling stakes in Sri Lanka's Colombo Dockyard in a $52.96 million deal. The proposed acquisition, MDL's first international venture, would give the Mumbai-based ship building yard 51 % equity in the Sri Lankan PLC that is grappling with persisting losses. A well-known ship repair, ship building, heavy engineering and offshore engineering facility in Sri Lanka, CDPLC has been saddled in debt over the years (over LKR 28 billion, or roughly ₹ 8 billion, in short and long term debt), Sri Lankan business newspaper the Daily Financial Times reported on Saturday (June 28, 2025), terming the Indian company's acquisition 'highly beneficial' for India and Sri Lanka. The transaction is expected to be completed in six months. 🔶#MDL is set to acquire a controlling stake in Colombo Dockyard PLC (CDPLC), Sri Lanka's largest shipyard, in a deal worth up to USD 52.96 million. This marks MDL's first international in the Port of Colombo, CDPLC gives MDL a strategic foothold in the Indian… — Mazagon Dock Shipbuilders Limited (@MazagonDockLtd) June 27, 2025 'Located in the Port of Colombo, Colombo Dockyard PLC (CDPLC) gives MDL a strategic foothold in the Indian Ocean Region-- a key maritime corridor,' the MDL said in a statement. Colombo Dockyard was not immediately available for comment. Last year, Japanese company Onomichi Dockyard, which held majority stakes in Colombo Dockyard, decided to exit from the firm. Colombo 'urgently requested' New Delhi to 'encourage Indian investors' to consider investing in Colombo Dockyard fearing the implications of a default, according to official sources from the Indian side. As per the due process followed for a listed company, Mazagon Dock Shipbuilders Ltd was shortlisted based on their experience in shipbuilding and financial strength, the sources said. The development, of an Indian company acquiring controlling stakes at the facility located within the Colombo Port, comes amid New Delhi's preoccupation with apparently growing Chinese outreach in the region. Over the last few years, India raised concern with Sri Lanka multiple times, over Chinese research vessel visits to its ports, prompting Colombo to impose a moratorium on foreign research vessels. President Anura Kumara Dissanayake's government has said it would evolve a new national policy on the visit of foreign vessels. MDL is not the first Indian firm to enter the Colombo Port. In April this year, Adani Ports and Special Economic Zone Limited commenced operations at the Colombo West International Terminal (CWIT) that it is jointly developing with the Sri Lanka Ports Authority and Sri Lankan Conglomerate John Keells Holdings, adjacent to the China-backed Colombo International Container Terminal (CICT) at the Colombo Port.
Hindustan Times
a day 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.'
Time of India
2 days ago
- Business
- Time of India
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.
Time of India
2 days ago
- Business
- Time of India
Amid Chinese fishing in Indian waters, Mazagon Dock buys controlling stake in Colombo Shipyard
New Delhi: In a strategic acquisition that will significantly expand its production capacity and take it on the path of becoming a global player, India's largest shipyard, Mazagon Dock Shipbuilders Limited (MDL), is buying a controlling stake in Sri Lanka's largest shipbuilder, located in the port of Colombo. The controlling stake in Colombo Dockyard PLC ( CDPLC ), Sri Lanka's largest and most established shipyard, is being acquired for $52.96 million, with the Indian yard taking over as the majority shareholder. The acquisition will not just give the Indian yard a larger footprint but will also help limit the expansion of Chinese entities in the neighbourhood. The yard is especially vital given its location. It is close to some of the busiest shipping lanes in the world. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo "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 ," said MDL CMD Capt Jagmohan. Sources said the Sri Lankan yard is a loss-making entity but has great potential to emerge as a strong player in the region, given its history, technical capability and abundant land for expansion. The dockyard has been in dire straits for some time and initially it had sought help from the Japanese government as 51% is owned by Onomichi Dockyard . However, neither Japan or the Sri Lankan government could provide financial relief. Live Events In November 2024, Onomichi Dockyard exited from the entity and the Sri Lankan government requested India to encourage Indian investors to take over. The situation was dire as a default would have brought financial distress and uncertainty for workers employed in Colombo Dockyard. After due process, MDL was shortlisted, given its prowess in shipbuilding as well as financial strength. MDL officials said that subject to customary regulatory approvals and closing conditions, CDPLC will become a subsidiary of MDL.
