Mazagon Dock Shipbuilders Acquires Majority Stake in Colombo Dockyard for Strategic Expansion

Mazagon Dock Shipbuilders Limited (MDL), a leading public sector entity under India’s Ministry of Defence, has secured definitive agreements to obtain a controlling interest in Colombo Dockyard of Sri Lanka, signifying a major advancement in India's maritime strategic expansion.

According to official disclosures to stock exchanges, MDL will acquire a minimum of 51% ownership in the shipbuilding and repair firm based in Colombo, with the transaction valued at ₹452 crore. This acquisition involves both the secondary purchase of shares from the current major shareholder, Japan's Onomichi Dockyard Co. Ltd., and a primary capital investment into Colombo Dockyard through new equity issuance.

Established in 1974, Colombo Dockyard, which is listed on the Colombo Stock Exchange, stands as Sri Lanka’s largest and most sophisticated shipyard. It reported a consolidated turnover of LKR 2,544 crore (approximately ₹726 crore) for the fiscal year 2024. This acquisition is set to grant MDL greater access to the commercial shipbuilding and repair sectors in South Asia, thereby expanding its operational footprint beyond Indian borders.

Based in Mumbai, MDL is globally recognized for its specialized capabilities in constructing submarines, stealth naval vessels, and other strategic ships for the Indian Navy. The company has stated that this acquisition is in line with its long-term growth strategy, allowing it to explore new markets, enhance capacity, and bolster India's presence in the strategically significant Indian Ocean region.

The anticipated completion of the deal is within the next four to six months, subject to obtaining necessary regulatory approvals from authorities in both India and Sri Lanka.

Analysts in the industry suggest that this strategic move could considerably boost India’s maritime influence, particularly in light of China's continued investments in maritime and naval infrastructure throughout the Indian Ocean. The acquisition aligns with the Indian government’s larger agenda of maritime self-sufficiency as part of the “Aatmanirbhar Bharat” initiative.