Did you know that an Indian shipyard has a major role to play in Sri Lanka? A couple of weeks ago, Mazagon Dock Shipbuilders Limited (MDL), the Mumbai-based Government of India defence shipyard best known for building India's Scorpène-class submarines and frontline warships, formally completed the acquisition of an additional 3,66,49,271 fully paid ordinary shares in Colombo Dockyard PLC (CDPLC), Sri Lanka's largest and most established shipbuilding and ship repair facility.
With this, MDL's total shareholding in CDPLC now stands at a decisive 51 per cent, making this India's first-ever international acquisition in the shipbuilding sector.
The acquisition was carried out through a mandatory open offer as part of a Tripartite Agreement signed between MDL, CDPLC and Onomichi Dockyard Co. Ltd. of Japan, which until recently held the controlling stake in Colombo Dockyard.
Onomichi had terminated its management agreement with CDPLC in November 2024, prompting the Sri Lankan shipyard to seek a new strategic investor after being placed on the Colombo Stock Exchange watchlist over financial concerns.
After evaluating proposals from nearly 40 overseas parties, CDPLC's board chose MDL, citing its financial strength, technical expertise and proven track record in both naval and commercial shipbuilding.
The deal has been executed in phases. In January 2026, MDL completed the first leg, acquiring a 41.73 per cent stake through subscription to unsubscribed rights shares formerly held by Onomichi.
The latest share purchase, disclosed on March 27, brought the total stake up to 51 per cent, completing a total investment of approximately ₹452 crore.
Colombo Dockyard, established in 1974 and conveniently located within the Port of Colombo, is a hub on the busiest shipping lanes linking Asia, the Middle East, Africa and Europe. It is a versatile facility offering ship repair, shipbuilding, heavy engineering and offshore engineering services. Gaining control of this strategically positioned yard opens up a regional platform to expand commercial ship repair capacity, win international contracts and project India's growing maritime muscle into the Indian Ocean.
The move slots neatly into India's Maritime Amrit Kaal Vision 2047 and reinforces the country's ambition to become a global shipbuilding powerhouse.