Colombo/Mumbai, June 28, 2025 — Taking a strategic step towards global maritime expansion, India’s leading state-owned shipbuilder Mazagon Dock Shipbuilders Limited (MDL) has announced the acquisition of a 51% controlling stake in Colombo Dockyard PLC (CDPLC) for approximately $52.96 million. This is MDL’s first international acquisition and establishes a significant Indian industrial footprint in the heart of the Indian Ocean.
The deal, finalised with Sri Lanka’s Aitken Spence Group, which holds a majority stake in CDPLC, is set to reshape the regional shipbuilding and maintenance landscape, adding significant geopolitical and commercial value to India’s maritime strategy.
🌊 Strategic Maritime Expansion
Located in the Port of Colombo, CDPLC is Sri Lanka’s largest shipyard, with four operational dry docks and a legacy of building and repairing ships for customers across Asia, the Middle East and Africa. Colombo Port is one of the busiest and most strategically located ports along global shipping lanes, making this acquisition a huge gain for India’s shipping and defence infrastructure.
With this move, Mazagon Dock – best known for building submarines and warships for the Indian Navy – will now have a physical presence in a foreign port. This is a significant development for India as it strengthens logistics capabilities and naval diplomacy in a region with a growing Chinese presence.
🚢 Transformation of Colombo Dockyard
Colombo Dockyard, despite facing financial losses in recent years, holds an order book of over $300 million, including contracts for advanced offshore and defence-related vessels. With MDL’s technical know-how and financial support, there is a clear opportunity to transform CDPLC’s performance by:
Technology infusion into submarine systems, warship modules and modern construction.
Operational restructuring leveraging MDL’s project execution track record.
Supply chain integration with Indian and allied defence ecosystems.
This acquisition could breathe new life into CDPLC, making it a key part of India’s expanding shipbuilding and maintenance network in the Indo-Pacific.
🧭 A geopolitical signal
Beyond business, this acquisition has strategic significance. At a time when China’s presence in Sri Lanka has drawn global attention – particularly through its control over the Hambantota port – India’s move in Colombo is being seen as a balancing act. It reflects New Delhi’s broader Indo-Pacific policy to secure sea lanes and establish cooperative defence and commercial nodes with neighbouring countries.
This aligns with India’s “Maritime Amrit Kal Vision 2047” and Indo-Pacific Ocean Initiative, which aim to enhance regional security, trade potential and blue economy investment.
👷 What’s next?
The transaction is subject to final regulatory approval from both Indian and Sri Lankan authorities. Once completed, MDL will take over operational control and begin the process of workforce training, technology transfer and infrastructure modernization at CDPLC.
According to sources close to the matter, Mazagon Dock intends to:
Use CDPLC for regional ship repair contracts and maintenance for friendly navies.
Undertake joint vessel building programmes for ASEAN and African customers.
Establish Colombo as a hub for mid-sea vessel servicing and dry-docking.
📈 Industry and Investor Takeaway
For India, this acquisition opens up new avenues of exports and defence collaboration. For MDL, it diversifies revenues and opens up international customers. And for Sri Lanka, it brings much-needed investment and technological partnerships into a strategic national asset.
Market analysts have reacted positively, viewing the move as a long-term value creator for MDL shareholders and a strategic hedge against regional uncertainty.
India gaining a foothold in Mazagon Dock Colombo is not just a financial deal – it is a flag planted at the centre of Indian Ocean geopolitics. With the ability to build, repair and project naval power beyond its shores, India has sent a clear message: its maritime ambitions are no longer coastal – they are regional, assertive and ongoing.
