Mazagon Dock completes first overseas acquisition with 51% stake in Colombo Dockyard for rs 249.5 cr

MUMBAI : Mazagon Dock Shipbuilders has completed its first international acquisition, securing a 51 per cent controlling stake in Colombo Dockyard for approximately Rs 249.5 crore ($26.8 million).

The Mumbai-based defence public sector undertaking announced the transaction brings Sri Lanka’s largest shipyard under its operational control, marking a transformative step in India’s maritime expansion strategy.

The acquisition, which represents the first instance of an Indian shipyard acquiring a controlling interest in an overseas facility, was executed through a combination of primary share subscriptions and secondary purchases from Japan’s Onomichi Dockyard.

The deal aligns with India’s Maritime Amrit Kaal Vision 2047, which aims to establish the country as a leading global maritime power.

Colombo Dockyard PLC, established in 1974 and located within the Port of Colombo, operates four graving dry docks with a maximum capacity of 125,000 deadweight tonnes.

The facility reported revenue of Rs 687.1 crore in FY24, though it has faced financial difficulties in recent years, including a loss of $38.3 million in 2023 due to contracts agreed at unsustainable prices before the Covid-19 pandemic.

Following the acquisition, Mazagon Dock has reconstituted Colombo Dockyard’s board with its nominees.

Captain Jagmohan (Retd), MDL’s Chairman and Managing Director, was appointed non-executive chairman effective 7 April 2026, alongside directors Biju George and Ruchir Agrawal.

The Sri Lankan facility’s managing director, Thimira S Godakumbura, continues in his role.

The strategic acquisition provides Mazagon Dock with access to Colombo Dockyard’s Indian Ocean location along major global shipping routes, as well as a full-fledged engineering workshop under development at Hambantota International Port.

An MoU signed on 7 April between Colombo Dockyard and Dredging Corporation of India Limited establishes the facility as DCI’s preferred drydocking and repair partner, while Mazagon Dock is in discussions with Shipping Corporation of India to route vessel repair work to its new subsidiary.

The Indian shipbuilder is targeting 20 per cent growth in Colombo Dockyard’s revenue and profits this financial year through new order inflows and enhanced operational efficiency.