Mumbai: Mazagon Dock Shipbuilders, a government-owned Indian company under the Ministry of Defence, has announced it will acquire a 51 percent controlling stake in Colombo Dockyard, a major shipbuilding firm in Sri Lanka.
The deal is worth Rs 452 crore, and Mazagon Dock signed agreements with the current majority stakeholder, Onomichi Dockyard Co. from Japan.
This takeover will involve both buying shares directly from current owners and subscribing to new shares through primary investment in Colombo Dockyard.
Why This Deal Matters
Mazagon Dock Shipbuilders is a well-known player in India’s naval sector. The company builds submarines, warships, cargo ships, and even deep-sea research vessels.
By acquiring Colombo Dockyard, the company is aiming to expand its operations beyond India.
Colombo Dockyard is a listed company on the Colombo Stock Exchange and is based in Graving Dockyard, Colombo. It also focuses on building and repairing ships.
This acquisition will help Mazagon Dock:
Grow its presence in the international shipbuilding market
Increase production capabilities
Improve operational synergies between both companies
A Step Towards Global Growth
In its official statement, Mazagon Dock said the acquisition is a strategic step that aligns with its long-term growth vision.
By working together, both companies can bring in new business, share resources, and strengthen shipbuilding and repair services across the region.
This marks a big move for Mazagon Dock as it becomes a stronger player not just in India, but also in the South Asian maritime market.
