Cochin Shipyard to launch Rs 1,800 crore joint venture with Drydocks World Dubai

Cochin Shipyard announced a plan to form a joint venture with Drydocks World Dubai valued at roughly Rs 1,800 crore, transferring its Integrated Ship Repair Facility on a slump-sale basis. The state-run shipbuilder will receive half of the consideration in cash and the remaining half as shares in the new entity. The JV will own and operate the ship-repair complex on Willingdon Island, handling dry-docking, maintenance, repair and overhaul of vessels up to 130 metres long and 6,000 tonnes in weight, and will expand capacity by adding ten workstations.

Drydocks World Dubai will have greater management influence, nominating three of five directors and senior executives such as the CEO, CFO and COO, while Cochin Shipyard will appoint the other two directors. The partnership aims to bring global best practices and advanced technology to India’s ship-repair sector, improving quality, efficiency and turnaround times. The transaction awaits clearance from the Cochin Port Authority, the Ministry of Ports, Shipping and Waterways, the Department of Investment and Public Asset Management, and Cochin Shipyard’s shareholders, with the joint venture agreement expected to be signed on September 11 and implementation targeted before the fiscal year ends.