Latest news with #MDL
Hindustan Times
7 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.'
Time of India
9 hours 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
13 hours 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.
NDTV
13 hours ago
- Business
- NDTV
Mazagon Dock Shipbuilders To Acquire Controlling Stake In Colombo Dockyard PLC
Mumbai: State-run Mazagon Dock Shipbuilders Limited (MDL) has decided to acquire a controlling stake in Sri Lanka's Colombo Dockyard PLC under a USD 52.96 million deal, a move that is expected to expand India's strategic presence in the island nation. MDL's decision marks its first international venture and is seen as a major milestone in the company's transformation from a purely domestic shipbuilder into a regional maritime player with global aspirations. "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. Officials said MDL's acquiring controlling stakes in CDPLC will significantly change the shipbuilding and ship repair landscape in the region. The MDL will bring an order pipeline for CDPLC from both domestic and international markets for repairs, refits and new builds, they said. As such there is a continuous revenue stream of ship repairs from the Indian sub-continent and MDL acquiring controlling stakes would only further this trend, they said. The move comes amid concerns in New Delhi over China's persistent attempts to expand its strategic influence in the island nation. Colombo Dockyard PLC, 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, the Middle East, and Africa. It is Sri Lanka's largest shipyard. "The investment, valued at up to USD 52.96 million, will be carried out through a combination of primary infusion and secondary share purchase, including the acquisition of shares from Onomichi Dockyard Co Ltd, the current majority shareholder," the readout said. A number of orders for which potential clients are approaching MDL can also be diverted to CDPLC which will ensure that there is a supply chain and industrial connectivity, the officials cited above said. They said both the shipyards possess enormous expertise garnered over the past decades and this strength can be leveraged for mutual benefit and can result in a win-win scenario. 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 CDPLC which is currently under financial distress can benefit from MDL's strong financial capabilities and resource base thereby expediting the turnaround process, the officials said. The MDL can leverage its resources for augmentation of the operations of CDPLC and its subsidiaries in other ports of the country based on opportunities that may arise, they added. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
New Indian Express
14 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.
