Mazagon Dock Shipbuilders Limited (MDL), a premier public sector undertaking under India’s Ministry of Defence, has signed definitive agreements to acquire a controlling stake in Sri Lanka’s Colombo Dockyard, marking a key step in India’s strategic maritime expansion.
As per official filings with stock exchanges, MDL will acquire at least 51% equity in the Colombo-based shipbuilding and repair company at a deal value of ₹452 crore. The acquisition will involve both secondary purchase of shares from current majority shareholder Onomichi Dockyard Co. Ltd. of Japan and a primary investment into Colombo Dockyard through a fresh equity subscription.
Founded in 1974, Colombo Dockyard is listed on the Colombo Stock Exchange and has long served as Sri Lanka’s largest and most advanced shipyard. It posted a consolidated turnover of LKR 2,544 crore (approx. ₹726 crore) in FY24. The acquisition will provide MDL with enhanced access to commercial shipbuilding and repair markets in South Asia, strengthening its operational base beyond India.
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MDL, headquartered in Mumbai, is globally known for its expertise in building submarines, stealth warships, and special-purpose vessels for the Indian Navy. The company said this acquisition aligns with its long-term growth vision and will help it explore new markets, increase capacity, and boost India’s presence in the Indian Ocean region.
The proposed deal is expected to be completed within 4 to 6 months, pending regulatory approvals in both India and Sri Lanka.
Industry experts say the move could significantly enhance India’s strategic maritime leverage, especially as China continues to invest heavily in port and naval infrastructure across the Indian Ocean. The acquisition also dovetails with the Indian government’s broader vision of maritime self-reliance under the “Aatmanirbhar Bharat” initiative.
