Cochin Shipyard Limited (CSL) has approved the formation of a joint venture with Drydocks World Dubai FZCO (DDW) for its International Ship Repair Facility (ISRF). The JVCo. will be equally held by CSL and DDW. This strategic move aims to leverage combined expertise to enhance ship repair capabilities and contribute to India’s maritime vision. The agreement is expected to be implemented by the end of the current financial year.
Cochin Shipyard Approves Key Joint Venture
Cochin Shipyard Limited (CSL) has announced a significant strategic development following its Board of Directors’ meeting on September 09, 2026. The company has officially approved the formation of a joint venture (JV) with Drydocks World Dubai FZCO (DDW). This new entity, named JVCo., will be established as a private limited company with its registered office in Kochi, Kerala.
Strategic Asset Transfer and Purpose
The primary objective of the JVCo. will be to own, operate, and manage CSL’s International Ship Repair Facility (ISRF) located at Willingdon Island, Kochi. This facility specializes in the dry-docking, maintenance, repair, and overhaul of commercial and naval vessels up to 130 meters in length and 6,000-tonne weight. The JV also plans to augment the ISRF’s capacity by adding ten new workstations. The ISRF, developed over 30 hectares, has a construction cost of Rs. 970 Crores and a current third-party valuation of Rs. 1,800 Crores.
Shareholding and Governance
CSL and DDW will be equal partners, each holding a 50% stake in the JVCo.’s share capital. The JVCo.’s Board of Directors will comprise five members, with DDW nominating three directors and CSL nominating two. This structure ensures balanced governance and strategic direction for the new venture. The ISRF will be transferred to the JVCo. on a slump sale basis for a consideration of not less than Rs. 1,800 Crores. CSL will receive 50% of this consideration in cash and the remaining 50% in shares of the JVCo.
Rationale and Expected Benefits
This joint venture is poised to leverage the complementary strengths and expertise of both CSL and DDW in the ship repair sector. The collaboration is expected to foster synergies, facilitate the adoption of global best practices, and enhance the efficiency and quality of domestic ship repair services. Furthermore, it aligns with India’s maritime ambitions, aiming to augment ship repair capacity, strengthen infrastructure, and boost the nation’s capability in undertaking complex maritime projects. The initiative also supports the Government of India’s vision of self-reliance in the maritime sector.
Key Terms and Approvals
Definitive agreements, including the Joint Venture Agreement and Shareholders Agreement, have been finalized. The JV Agreement is scheduled to be signed on September 11, 2026. The proposal requires approvals from the Cochin Port Authority, the Government of India, and CSL’s shareholders. The transaction is considered a related party transaction due to CSL’s shareholding in the JVCo. but is being undertaken at an arm’s length basis. The implementation of the proposal is anticipated before the end of the current financial year.
About Drydocks World – Dubai (DDW)
Drydocks World – Dubai FZCO (DDW) is a DP World company with over four decades of experience in marine and offshore services. It is a leading provider for the shipping, oil & gas, and renewable energy sectors, undertaking over 300 projects annually. DDW’s facility in Dubai is the largest ship repair facility in the Middle East, offering services beyond conventional ship repair, including vessel conversions and offshore fabrication.
Source: BSE
