Mazagon Dock Shipbuilders Limited (MDL) has announced plans to acquire a majority controlling stake in Colombo Dockyard PLC (CDPLC) for USD 52.96 million (approx. INR 4.52 billion). This would be MDL’s first international investment, expected to complete within four to six months, subject to customary closing conditions and regulatory approvals.
The acquisition combines a primary capital infusion and secondary share acquisitions, including purchases from Onomichi Dockyard Co. Ltd., the current majority shareholder. Under the agreement, MDL will become the majority stakeholder and effectively make CDPLC its subsidiary.
According to MDL, the deal grants it a strategic foothold in the Port of Colombo, enhancing operational synergies, R&D capabilities, and expansion into the wider Indian Ocean region. The company sees opportunities to channel shipbuilding, repair, and refit orders from both Indian and international clients to CDPLC. MDL also aligned the move with India’s “Maritime Amrit Kaal Vision 2047.”
CDPLC has faced financial stress, reporting a loss of LKR 2.48 billion in 2024 and carrying significant liabilities (~LKR 38 billion). The acquisition is expected to provide technical support, financial stability, secure jobs, and stabilise operations at the Colombo-based facility.
MDL is a Defence PSU under India’s Ministry of Defence. The company builds warships, submarines, offshore platforms, cargo/passenger vessels, and tugs. Nationalised in 1960, the shipyard has delivered over 800 vessels since 1960 and was granted Navratna status in 2024. It is publicly traded on Indian stock exchanges.
Established in 1974, Colombo Dockyard is Sri Lanka’s leading shipyard, offering shipbuilding, repair, heavy and offshore engineering services. Located in the deep-water Port of Colombo, it constructed vessels for both military and commercial clients across Asia, the Middle East, and Africa.
