MUMBAI/COLOMBO, — April 11, 2026 : Mazagon Dock Shipbuilders Limited (MDL), a public sector undertaking under India’s Ministry of Defence, has completed the acquisition of a 51% controlling stake in Colombo Dockyard PLC (CDPLC), Sri Lanka’s largest shipbuilding and repair facility. The transaction, valued at approximately $26.8 million (₹249.5 crore to ₹250 crore), establishes CDPLC as a subsidiary of the Mumbai-headquartered shipbuilder and marks MDL’s first international acquisition.
The deal was executed through a phased process under a tripartite agreement involving MDL, CDPLC, and Onomichi Dockyard Co. Ltd., the former majority shareholder. As part of the initial phase, MDL acquired a 41.73% stake by purchasing 164.9 million unsubscribed rights shares previously allotted to Onomichi Dockyard at a price of 40 Sri Lankan Rupees per share, amounting to ₹16.49 crore.
This initial acquisition triggered a mandatory open offer in accordance with Sri Lanka’s Takeovers and Mergers Code. Following the completion of the open offer process, MDL acquired an additional 9.27% stake, equivalent to 36,649,271 fully paid ordinary shares at the same price of LKR 40 per share. With a total holding of 201,565,500 ordinary shares, MDL has secured a 51% majority stake in CDPLC. Indian law firm Khaitan & Co advised MDL on the structuring of the cross-border transaction.
Board Reconstitution and Management Continuity
Following the completion of the acquisition, the board of Colombo Dockyard PLC has been reconstituted to reflect MDL’s majority ownership. Effective April 7, 2026, Captain Jagmohan (Retd.), Chairman and Managing Director of MDL, has been appointed as the Non-Executive Chairman of CDPLC.
Additional MDL nominees appointed to the board include Biju George, Director of Shipbuilding, and Ruchir Agrawal, Director of Finance. Vish Govindasamy, Deputy Chairman of Sunshine Holdings PLC, has also been inducted as an MDL nominee director.
To ensure operational continuity, Thimira S. Godakumbura will continue in his role as Managing Director and Chief Executive Officer of Colombo Dockyard PLC.
Strategic Alignment and Infrastructure Capabilities
The acquisition aligns with the Government of India’s “Maritime Amrit Kaal Vision 2047,” a long-term policy framework issued by the Ministry of Ports, Shipping and Waterways aimed at expanding India’s maritime infrastructure and global presence. The strategy outlines more than 300 initiatives across 11 thematic areas, including positioning India among the top five global shipbuilding nations, achieving leadership in ship recycling, developing next-generation port infrastructure, and promoting sustainable maritime practices.
Colombo Dockyard PLC operates within the Port of Colombo and maintains four graving dry docks, including one with a maximum capacity of 125,000 deadweight tonnes (DWT). The facility also includes multiple repair berths and services more than 200 vessels annually. CDPLC has capabilities spanning shipbuilding, ship repair, heavy engineering, and offshore engineering, supporting both civilian and military vessel construction.
In addition to its Colombo operations, CDPLC is developing an engineering workshop at the Hambantota International Port in southern Sri Lanka, providing MDL access to additional infrastructure in the Indian Ocean region.
Financial Context and Performance
The acquisition follows a period of financial stress for Colombo Dockyard PLC. The company reported a loss of $38.3 million in 2023 amid a global downturn in shipbuilding and broader macroeconomic challenges in Sri Lanka. These pressures led to CDPLC shares being placed on a watch list by the Colombo Stock Exchange in 2024 and contributed to the termination of its management agreement with Onomichi Dockyard.
Despite these challenges, CDPLC recorded consolidated revenues of LKR 36,168 million (approximately ₹976.5 crore) in FY2023 and LKR 25,447 million (approximately ₹687.1 crore) in FY2024.
Integration and Operational Outlook
The integration process following the acquisition is expected to focus on addressing CDPLC’s working capital constraints, enabling access to refund guarantees for new shipbuilding contracts, and aligning operations with Indian maritime supply chains. The transaction is also expected to support capacity expansion and operational improvements at the Sri Lankan yard through MDL’s technical and financial resources.
Mazagon Dock Shipbuilders Limited, India’s largest warship builder, designs and constructs naval vessels, submarines, and other defence platforms for the Indian Navy and Coast Guard. The acquisition of Colombo Dockyard PLC represents a significant step in extending its operational footprint beyond India and strengthening its position within the regional maritime industry.
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