Mazagon Dock Shipbuilders Limited (MDL), a leading public sector enterprise under India’s Ministry of Defence, has finalized agreements to acquire a controlling stake in Colombo Dockyard, a significant move that underscores India’s ambition for strategic maritime expansion.
In official disclosures to stock exchanges, MDL has confirmed its intention to acquire at least 51% equity in the Sri Lankan shipbuilding and repair facility, with the deal valued at ₹452 crore. This acquisition involves a combination of purchasing existing shares from the current majority stakeholder, Japan’s Onomichi Dockyard Co. Ltd., as well as a primary investment through new equity subscriptions.
Colombo Dockyard, established in 1974 and listed on the Colombo Stock Exchange, has consistently been recognized as Sri Lanka’s largest and most advanced shipyard. The facility reported a consolidated turnover of LKR 2,544 crore (approximately ₹726 crore) for the fiscal year 2024. Through this acquisition, MDL aims to enhance its foothold in commercial shipbuilding and repair markets across South Asia, thus expanding its operational capabilities beyond Indian borders.
MDL, based in Mumbai, is renowned globally for its specialization in constructing submarines, stealth warships, and specialized vessels for the Indian Navy. The company articulated that this acquisition aligns with its long-term growth strategy, enabling MDL to explore new markets, enhance capacity, and elevate India’s presence in the strategically critical Indian Ocean region.
The completion of this proposed deal is anticipated within a timeframe of 4 to 6 months, contingent upon receiving necessary regulatory approvals from both Indian and Sri Lankan authorities.
Industry analysts believe that this acquisition could significantly augment India’s strategic maritime positioning, especially in light of China’s ongoing investments in port and naval infrastructure throughout the Indian Ocean. The acquisition is also seen as a crucial step in alignment with the Indian government’s broader initiative for maritime self-reliance, under the banner of “Aatmanirbhar Bharat.”
