Mazagon Dock's Bold Move: Controlling Stake in Colombo Dockyard

Mumbai-based Mazagon Dock Shipbuilders Ltd, India's largest warship manufacturer, announced its decision to purchase a majority stake in Colombo Dockyard PLC. This acquisition, worth around Rs 452 crore, represents a significant milestone as it marks the first time an Indian shipyard, either state-owned or private, is buying a shipyard abroad.

The acquisition is part of Mazagon Dock's strategy to fortify its position in the ship repair and building sector. By aligning operational synergies, fortifying research and development capacities, and expanding its market presence, the company aims to support its long-term growth objectives.

The transaction is expected to conclude within four to six months. This move was approved by the Board of Directors of Mazagon Dock Shipbuilders, signaling a major step forward in the company's expansion efforts in the shipbuilding and repair industry.

(With inputs from agencies.)