Cochin Shipyard, Drydocks World Dubai to form 50:50 joint venture for Rs 1,800 crore ISRF

New Delhi: Cochin Shipyard Limited (CSL) has approved a proposal to form a 50:50 joint venture with Drydocks World–Dubai FZCO (DDW) to own, operate and manage its International Ship Repair Facility (ISRF) at Willingdon Island, Kochi.

Under the proposed transaction, the ISRF will be transferred to the joint venture company on a slump-sale basis as a going concern for a consideration of not less than Rs 1,800 crore. CSL will receive 50 percent of the consideration in cash and the remaining 50 percent through shares of the proposed JV.

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According to CSL, the proposed JV will operate as a private limited company incorporated under the Companies Act, 2013, with its registered office in Kochi. It will undertake dry-docking, maintenance, repair and overhaul of commercial and naval vessels of up to 130 metres in length and 6,000 tonnes in weight. The JV also plans to augment the facility by adding 10 workstations.

ISRF valued at Rs 1,800 crore

Developed over around 30 hectares on Willingdon Island, the ISRF was constructed at a cost of Rs 970 crore and operates on land and water areas leased from Cochin Port Authority for 60 years.

The facility has a 6,000-tonne ship lift and transfer system, six workstations and around 1,400 metres of berthing space. It can handle up to six vessels simultaneously and has an annual throughput capacity of up to 82 ships.

Commercial operations at ISRF commenced on August 12, 2024. The facility generated Rs 207.33 crore revenue in FY2025-26, accounting for around 4.81 percent of CSL's total revenue from operations. Its valuation based on independent third-party assessments stands at Rs 1,800 crore, equivalent to around 30.55 percent of CSL's net worth as of March 31, 2026.

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DDW to hold management control

CSL and DDW will hold equal 50 percent stakes in the proposed JV. The JV Board will comprise five directors, with DDW entitled to nominate three directors and key senior management personnel, including the CEO, CFO and COO, as applicable. CSL will nominate two directors.

The partnership is aimed at combining CSL's domestic ship repair capabilities with DDW's international expertise, with the companies seeking to introduce global best practices, advanced technologies and efficient processes into India's ship repair ecosystem.

The proposed JV is also expected to expand India's ship repair capacity and strengthen the country's ability to undertake complex and high-value ship repair projects.

Approvals pending

The transaction will require approvals from the Cochin Port Authority, Ministry of Ports, Shipping and Waterways, Department of Investment and Public Asset Management (DIPAM) and CSL shareholders.

CSL said the Joint Venture Agreement is proposed to be signed on September 11, 2026, while the other definitive agreements will be signed following incorporation of the JV and receipt of the requisite approvals. The transaction is expected to be implemented before the end of the current financial year.

Drydocks World–Dubai, a DP World company, has more than four decades of experience in the maritime and offshore sectors and undertakes more than 300 projects annually, according to CSL's disclosure.

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