Marking its first international acquisition, India’s premier defence shipyard Mazagon Dock Shipbuilders Ltd (MDL) has secured a 51% controlling stake in Colombo Dockyard PLC (CDPLC) for approximately Rs 249.5 crore ($26.8 million).
The Mumbai-based defence public sector undertaking announced in a statement on April 9 that the deal brings Sri Lanka’s largest shipyard under its operational control, marking a transformative step in India’s maritime expansion strategy. The deal involves acquiring shares from Japan’s Onomichi Dockyard. The acquisition is strategically important for India to counter China’s growing maritime footprint in Sri Lanka. Beijing holds a 99-year lease for Hambantota Port and has regularly docked naval vessels in Colombo, raising alarms in New Delhi. MDL’s acquiring a controlling stake in CDPLC is also being seen as a geopolitical response to China’s increasing presence in Indian Ocean Region (IOR).
