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The Hindu
an hour 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
14 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.'
Business Standard
a day ago
- Business
- Business Standard
Mazagon Dock to acquire Colombo Dockyard for Rs 452 crrore
Mazagon Dock Shipbuilders said that its board has approved the acquisition of a controlling and substantial stake of Colombo Dockyard PLC (CDPLC) by way of an investment not exceeding $52.96 million, i.e., approximately Rs 452 crore. The securities of CDPLC would be acquired via a combination of primary subscription and secondary acquisitions from the shareholders of CDPLC (including Onomichi Dockyard Co. Ltd. (Onomichi), a majority shareholder of CDPLC). For this purpose, Mazagon Dock, CDPLC and Onomichi have executed definitive documents setting out the terms and conditions of the proposed acquisition. Listed on Columbo Stock Exchange, Colombo Dockyard PLC is engaged in the business of ship building and ship repair. Turnover of CDPLC for the year ended 31 December 2024 on a consolidated basis is LKR 25,447 million. The proposed acquisition will enable Mazagon Dock to strengthen its position in the ship repair and ship building industry, by unlocking operational synergies, enhancing research development capabilities, and expanding market reach. It supports the companys long-term growth vision in the ship building and ship repair industry. "Pursuant to the completion of the proposed acquisition, CDPLC will become a subsidiary of the company, Mazagon Dock Shipbuilders said in a statement. Mazagon Dock Shipbuilders is principally engaged in building and repairing ships, submarines, various types of vessels, and related engineering products for its customers. The company's consolidated net profit declined 50.93% to Rs 325.29 crore, while revenue from operations rose 2.28% to Rs 3,174.41 crore in Q4 March 2025 over Q4 March 2024. The scrip had gained 1.54% to end at Rs 3169.50 on the BSE today.
Business Upturn
a day ago
- Business
- Business Upturn
Mazagon Dock to acquire majority stake in Colombo Dockyard for Rs 452 crore
Mazagon Dock Shipbuilders has announced plans to acquire a controlling and substantial stake in Colombo Dockyard PLC (CDPLC), a listed company on the Colombo Stock Exchange in Sri Lanka. The investment, capped at USD 52.96 million (approx. ₹452 crore), will be made through a mix of primary and secondary share purchases. The transaction involves acquiring a minimum 51% stake, including shares held by the current majority shareholder, Onomichi Dockyard Co. Ltd., and will make CDPLC a subsidiary of Mazagon Dock. The deal has already seen the signing of definitive agreements between Mazagon Dock, CDPLC, and Onomichi. Completion of the acquisition is subject to regulatory approvals, including clearance from the Colombo Stock Exchange, and is expected to close in 4 to 6 months. Colombo Dockyard, incorporated in 1974, is a major player in shipbuilding and ship repair in Sri Lanka. In FY24, it reported a consolidated turnover of LKR 25,447 million. Mazagon Dock expects the acquisition to boost its capabilities and reach in the global shipbuilding sector by unlocking synergies, enhancing R&D, and supporting long-term growth in core operations. In the meantime, Mazagon Dock shares traded in a narrow range today. The stock opened at ₹3,137.00, touched a high of ₹3,175.20, and a low of ₹3,094.00 during the session. The 52-week high for the stock stands at ₹3,775.00, while the 52-week low is ₹1,918.05. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
The Print
13-06-2025
- Business
- The Print
India extends funding to ferry service linking Sri Lanka
Colombo, Jun 13 (PTI) India has decided to extend the LKR 300 million financial assistance for another year to support the passenger ferry service between Kankesanthurai in Sri Lanka's north and Nagapattinam in Tamil Nadu. 'This extension is in line with India's continued commitment to enhancing regional connectivity and strengthening people-to-people linkages between the two nations,' the High Commission said.
