Mazagon Dock Shipbuilders Limited (MDL), India’s largest state-run shipyard, has announced the acquisition of a controlling 51% stake in Colombo Dockyard PLC (CDPLC), Sri Lanka’s premier and most established shipyard, for up to $52.96 million (approximately ₹452 crore).

The transaction, marking MDL’s first international acquisition, involves purchasing shares from Onomichi Dockyard Co. Ltd—the Japanese firm that currently holds the majority stake in CDPLC—through a mix of primary share subscription and secondary share purchase. Upon completion, Colombo Dockyard will become a subsidiary of MDL.

This move is a strategic leap for MDL, which has a market capitalisation of $15.12 billion and annual revenues of around $1.13 billion. The acquisition is aimed at leveraging CDPLC’s strategic location within the Port of Colombo—one of the busiest and most geopolitically significant maritime corridors in the world—offering MDL a robust operational foothold in the Indian Ocean region.

The region’s importance is underscored by increasing Chinese maritime activity and investments in Sri Lanka, making this acquisition a significant step for India’s maritime influence.

Colombo Dockyard, with over five decades of experience, specialises in shipbuilding, ship repair, and heavy engineering, having served clients across Japan, Norway, France, the UAE, India, and Africa. 

Despite its technical capabilities, the company has faced financial difficulties in recent years, reporting losses in 2024 and seeking financial relief from both Japanese and Sri Lankan authorities. The acquisition by MDL is expected to provide much-needed stability and growth prospects for CDPLC through technology transfer, integration into Indian supply chains, and access to new markets.

MDL’s leadership views this acquisition as a “gateway” to transforming into a global shipbuilding enterprise, enhancing its competitiveness and presence in the global shipbuilding and marine engineering sectors. Naval experts have hailed the move as a major strategic win for India, providing a visible global footprint and complementing other Indian investments in the region, such as Adani Ports’ stake in Colombo port.

The deal is anticipated to close within four to six months, subject to regulatory approvals. With this acquisition, MDL not only strengthens its regional presence but also positions itself as a key player in the global maritime industry, reinforcing India’s strategic interests in the Indian Ocean.

Agencies