Mumbai: Mazgaon Dock Shipbuilders Ltd (MDL) has signed an agreement with Japan’s Onomichi Dockyard to acquire a 51% controlling stake in the Colombo Dockyard PLC (CDPLC) for Rs.452 cr ($52.96 million). This deal will enable Mumbai-headquartered MDL to strengthen its position in the shipbuilding and ship repair market, where it currently dominates the market in India.
🔶#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 acquisition.Located in the Port of Colombo, CDPLC gives MDL a strategic foothold in the Indian… pic.twitter.com/B6ff1Pq053
— Mazagon Dock Shipbuilders Limited (@MazagonDockLtd) June 27, 2025
Founded in 1974, Colombo Dockyard offers dry docking, shipbuilding and offshore engineering services for over four decades, and has been on the block by its Japanese owner due to its severe financial challenges. Listed on the Sri Lankan stock exchange, the company is strategically located on a key waterway that connects major shipping lanes. In fact, Onomichi Dockyard had reportedly exited the company in November 2024, and the Sri Lankan government had shortlisted MDL to take over the company.
With this acquisition, Colombo Dockyard will become a subsidiary of Mazgaon Dockyard after all the acquisition formalities are met within 4-6 months. CDPLC currently has an order book of $300 million, which include multi-purpose utility ships, cable laying ships and new-built fleet support vessels.The company is capable of handling any vessel under 1.25 deadweight tonnage and can service around 200 ships annually, accoridng to its website.
For Mazgaon Dock, this first acquisition will allow it to offer better services in a market which is dominated by Chinese, Japanese and South Korean companies. This PSU, reporting to the Ministry of Defence, remains India’s leading shipbuilder, with a market capitalization of $15.12 billion and an order book worth Rs.32,260 crore. It has a consistent track record of delivering vessels for military and civilian purposes within resource constraints.
