Mazagon Dock Shipbuilders has completed its first international acquisition by securing a 51 per cent controlling stake in Colombo Dockyard for about Rs 249.5 crore (around $26.8 million). This move brings Sri Lanka’s largest shipyard under the operational control of the Mumbai-based defence public sector company. It marks a significant step in India’s efforts to expand its maritime presence globally.

The deal is notable as it is the first time an Indian shipyard has acquired a controlling stake in an overseas facility. The transaction was carried out through a mix of primary share subscriptions and secondary share purchases. These shares were acquired from Japan’s Onomichi Dockyard, which previously held a major stake in the Sri Lankan company.

This acquisition aligns with India’s Maritime Amrit Kaal Vision 2047. The long-term plan aims to position the country as a major global maritime power. By gaining control of Colombo Dockyard, Mazagon Dock strengthens its reach in the Indian Ocean region and enhances its shipbuilding and repair capabilities.

Colombo Dockyard PLC was established in 1974 and is located within the Port of Colombo. It operates four graving dry docks and has the capacity to handle vessels up to 125,000 deadweight tonnes. The shipyard reported a revenue of Rs 687.1 crore in the financial year 2023–24. However, it has faced financial challenges in recent years. In 2023, the company recorded a loss of $38.3 million. This was mainly due to contracts signed at unsustainable prices before the COVID-19 pandemic.

Following the acquisition, Mazagon Dock has restructured the board of Colombo Dockyard. It has appointed its own nominees to key positions. Captain Jagmohan (Retd), Chairman and Managing Director of Mazagon Dock, has been named the non-executive chairman of Colombo Dockyard. His appointment came into effect on 7 April 2026. Other board members include Biju George and Ruchir Agrawal. At the same time, Thimira S Godakumbura continues in his role as managing director of the Sri Lankan company, ensuring continuity in operations.

The acquisition offers several strategic advantages. Colombo Dockyard is located along major global shipping routes in the Indian Ocean. This gives Mazagon Dock better access to international maritime traffic. The deal also includes access to a developing engineering workshop at Hambantota International Port, which can support future ship repair and maintenance work.

In addition to the acquisition, Colombo Dockyard has signed a memorandum of understanding with Dredging Corporation of India Limited on 7 April. Under this agreement, the Sri Lankan facility will act as DCI’s preferred partner for drydocking and repair services. Mazagon Dock is also in talks with the Shipping Corporation of India. The aim is to route more vessel repair work to Colombo Dockyard, which could improve its business prospects.

Mazagon Dock is focusing on improving the financial performance of its new subsidiary. The company is targeting a 20 per cent growth in both revenue and profits for Colombo Dockyard in the current financial year. This is expected to be achieved through new orders and better operational efficiency. The company believes that stronger management and increased business flow will help turn around the shipyard’s recent losses.

Overall, the acquisition marks a major milestone for Mazagon Dock. It reflects India’s growing ambitions in the global maritime sector. By taking control of Colombo Dockyard, the company has expanded its international footprint and strengthened its position in a strategically important region.