Cochin Shipyard to form Rs 1,800 crore JV with DP World's Drydocks World Dubai for Kochi facility

Cochin Shipyard Ltd (CSL) on Wednesday approved a proposal to form a 50:50 joint venture with Drydocks World Dubai FZCO (DDW), a DP World company, to operate and manage its International Ship Repair Facility (ISRF) in Kochi.

As part of the proposed transaction, Cochin Shipyard will transfer the ISRF to the joint venture on a slump sale basis for a consideration of around Rs 1,800 crore. The state-run shipbuilder will receive half the consideration in cash, while the remaining 50% will be received in the form of shares of the joint venture.

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The proposed joint venture is set to own, operate and manage the ship repair facility at Willingdon Island in Kochi, undertaking dry-docking, maintenance, repair and overhaul of commercial and naval vessels below 130 metres in length and weighing up to 6,000 tonnes. The partners also plan to expand the facility by adding 10 workstations.

DDW will have greater management representation in the joint venture, with the right to nominate three of the five directors as well as senior management personnel, including the CEO, CFO and COO, where applicable. CSL will nominate the remaining two directors.

The ISRF, spread across around 30 hectares at Willingdon Island, was built at a cost of Rs 970 crore and began commercial operations in August 2024. It has a 6,000-tonne ship lift and transfer system, six workstations and around 1,400 metres of berthing space, allowing it to repair up to six vessels simultaneously and handle up to 82 ships annually.

The facility generated revenue of Rs 207.33 crore in FY26, accounting for about 4.81% of CSL's total revenue from operations. An independent valuation has placed the value of the facility at Rs 1,800 crore, equivalent to around 30.55% of Cochin Shipyard's net worth as of March 31, 2026.

Cochin Shipyard said the partnership is aimed at combining the companies' expertise and capabilities in ship repair, helping bring global practices, advanced technologies and more efficient processes to India's domestic ship repair ecosystem.

The company expects the partnership to improve the quality, efficiency and turnaround time of ship repair services, while expanding India's capacity to undertake complex and high-value repair projects.

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Drydocks World Dubai is a leading marine and offshore services company with more than four decades of experience and undertakes more than 300 projects annually. Its Dubai facility is the largest ship repair facility in the Middle East, while the company has completed more than 9,000 ship repair, maintenance and upgrade projects since its inception.

The transaction will require approvals 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.

CSL and DDW have finalised the joint venture, shareholders, business transfer and licence agreements. The joint venture agreement is proposed to be signed on September 11, while the transaction is expected to be implemented before the end of the current financial year, subject to the required approvals.