Mazagon Dock buys Colombo Yard

Mazagon Dock Shipbuilders now controls Colombo Dockyard after raising its holding to 51%, giving the Indian state-owned yard a base in Sri Lanka. (ft.lk) The takeover was completed after a mandatory offer to Colombo Dockyard shareholders closed on March 12, 2026. Mazagon Dock said it had already bought 164,916,229 shares, or 41.73%, and then received acceptances for another 36,649,271 shares, taking its total to 201,565,500 shares. (ft.lk) Mazagon Dock’s total investment was about $26.8 million, or roughly 24.95 billion Indian rupees, and the company disclosed in June 2025 that Colombo Dockyard would become its subsidiary once the deal closed. Colombo Dockyard reported 2024 consolidated turnover of 25,447 million Sri Lankan rupees and net worth of 5,311 million Sri Lankan rupees in Mazagon Dock’s filing. (economictimes.indiatimes.com) (bseindia.com) The deal gives Mazagon Dock capacity outside India at a time when New Delhi has been pushing to expand domestic shipbuilding and maritime manufacturing. Mazagon Dock is best known as a defense yard in Mumbai, where it builds warships and submarines for the Indian Navy, but Colombo Dockyard adds commercial ship repair and export work in the Port of Colombo. (mazagondock.in) (cdl.lk) Colombo Dockyard had been looking for a new controlling investor since Japan’s Onomichi Dockyard decided in December 2024 to sell its 51% stake and end a management agreement that had run for more than three decades. Colombo Dockyard said Onomichi’s exit came as the Sri Lankan company was dealing with deep financial strain. (ft.lk) (cdn.cse.lk) That strain was severe in 2024. Colombo Dockyard’s annual report said 2024 was its toughest year in recent history, following heavy losses and emergency restructuring efforts as it tried to keep operations running and protect contracts. (publicnow.com) Colombo Dockyard matters in Sri Lanka because it operates inside the Port of Colombo and has long been one of the country’s main shipbuilding and ship-repair facilities. The company’s own reports describe it as a South Asian engineering business focused on shipbuilding, ship repair, heavy engineering and offshore work. (cdl.lk) Mazagon Dock has framed the acquisition as its first overseas expansion, and Sri Lankan filings show the ownership change is already complete. The next test is whether the new parent can stabilize Colombo Dockyard’s finances while keeping its yards busy in Colombo. (economictimes.indiatimes.com) (ft.lk)