MDL Acquires Stake in Colombo Dockyard

Mumbai, Jun 27 (PTI) The Mazagon Dock Shipbuilders Limited (MDL), India's Public Sector Shipyard, has announced a "proposed acquisition" of a controlling stake in Sri Lanka's largest and most established shipyard, Colombo Dockyard PLC (CDPLC) valued at up to USD 52.96 million, a statement said on Friday.


This marks MDL's first international venture 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 said.


Strategically located within the Port of Colombo, CDPLC 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 Shipbuilders Limited, headquartered in Mumbai, is India's leading defence PSU, builder of frontline warships and submarines and has played a pivotal role in the country's naval modernisation.


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.


“Mazagon Dock Shipbuilders Limited (MDL), India's Public Sector Shipyard, has announced a significant step in its strategic evolution with the approval of a proposed acquisition of a controlling stake in Sri Lanka's largest and most established shipyard, Colombo Dockyard PLC (CDPLC).


“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 statement said.



Upon completion, subject to customary regulatory approvals and closing conditions, CDPLC will become a subsidiary of MDL.

The move assumes significance amid the increasing assertiveness of Chinese in the Indian Ocean region and its presence in India's neighbourhood.


“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 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 Capt Jagmohan, Chairman and Managing Director of MDL.


Colombo Dockyard PLC brings to MDL more than five decades of experience in shipbuilding, ship repair, and heavy engineering. The company 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. It is the only shipyard in Sri Lanka offering an integrated portfolio of services—ranging from in-house design and construction to advanced repair and marine steel fabrication, it said.


CDPLC operates four drydocks and multiple berths capable of handling vessels up to 125,000 DWT and maintains compliance with ISO and classification standards such as DNV, Lloyd's Register, ABS, and IRS.


In addition to its technical strengths, CDPLC is actively pursuing a pipeline of orders exceeding USD 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 financial turnaround and long-term growth, the statement said.


The acquisition envisages India's emergence as a leading maritime power with strong regional integration and industrial capabilities. It also supports MDL's broader vision to foster maritime self-reliance, promote regional cooperation, and create a competitive, multi-location shipbuilding enterprise anchored in Indian expertise, the statement said.