Mumbai:
In a major step towards expanding India’s presence in the Indian Ocean, Mazagon Dock Shipbuilders Limited (MDL) has announced its first international acquisition. The state-owned company will take control of Sri Lanka’s Colombo Dockyard PLC in a deal worth USD 52.96 million.
This marks a key moment for MDL, which has so far focused only on building and repairing ships within India. With this move, MDL begins its journey into global waters, aiming to become a strong player in the regional and international shipbuilding industry.
Strategic Location in the Indian Ocean
Colombo Dockyard PLC (CDPLC) is located in the Port of Colombo, a major hub in the Indian Ocean Region, one of the most important sea trade routes in the world. Owning a major shipyard in this location gives MDL a strategic advantage and strengthens India’s maritime footprint.
Officials said the acquisition will help MDL bring in more orders for ship repairs, refits, and new builds. These orders will come not only from India but also from other countries across Asia, the Middle East, and Africa.
Growing India’s Influence
This deal also comes at a time when India is keeping a close eye on China’s growing presence in Sri Lanka and the surrounding regions. By investing in Colombo Dockyard, India strengthens its ties with Sri Lanka and counters China’s increasing influence in the island nation.
Details of the Deal
The investment will include a primary fund infusion and secondary share purchase. MDL will also buy shares from Onomichi Dockyard Co. Ltd, which is currently the largest shareholder in CDPLC.
What This Means for Both Shipyards
Both MDL and CDPLC have years of experience in building and repairing ships. Officials said the skills, designs, and resources at both shipyards will be shared and used for the benefit of both companies.
For example:
- Advanced ship design capabilities can be shared for projects in both India and Sri Lanka.
- Orders that MDL receives can be fulfilled by CDPLC to ensure better industrial connectivity and faster delivery.
- CDPLC, which is currently facing financial issues, will benefit from MDL’s strong financial background, helping it get back on track.
A Win-Win for India and Sri Lanka
Experts believe this partnership can be a win-win deal. India gets a foothold in a key maritime location, and Sri Lanka’s leading shipyard gets the support it needs to recover and grow. It will also lead to continuous revenue from ship repair and build orders coming from across the Indian subcontinent and beyond.
Conclusion
With this move, Mazagon Dock Shipbuilders takes a big step toward becoming a global name in the shipbuilding industry. The Colombo Dockyard acquisition not only boosts India’s maritime power but also deepens its strategic connection with Sri Lanka. As MDL expands its reach, it opens a new chapter in India’s regional dominance in the Indian Ocean.
Last modified: June 29, 2025
