Cochin Shipyard forms 50:50 JV with Drydocks World Dubai for ₹1,800 crore ISRF
- Cochin Shipyard forms 50:50 joint venture with Drydocks World Dubai for its International Ship Repair Facility
- ISRF valued at ₹1,800 crore; Cochin Shipyard receives 50% cash and 50% equity
- Facility reported ₹207.33 crore revenue in FY26, comprising 4.81% of total revenue
- Board approved deal on September 9, 2026; agreements to be signed September 11, 2026
- JV aims to augment capacity with ten additional workstations and adopt global best practices
*this image is generated using AI for illustrative purposes only.
Cochin Shipyard has approved a joint venture with Drydocks World Dubai to operate an international ship repair facility in Kochi, with each company holding a 50% stake in the new venture. The board approved the proposal on September 9, 2026.
Joint venture structure
The new venture brings together Cochin Shipyard and Drydocks World Dubai on equal terms, with both partners contributing an identical ownership share. The facility is to be located in Kochi, positioning it as an internationally focused ship repair operation.
The following table summarises the key parameters of the joint venture:
| Parameter | Details |
|---|---|
| Venture type | Joint venture |
| Partners | Cochin Shipyard and Drydocks World Dubai |
| Stake held by each partner | 50% |
| Facility type | International ship repair |
| Facility location | Kochi |
Deal terms and valuation
The joint venture will be formed as a private limited company incorporated under the Companies Act, 2013, with its registered office at Kochi. Cochin Shipyard will transfer its International Ship Repair Facility (ISRF) to the new entity on a slump sale basis for a consideration of not less than ₹1,800 crore.
Cochin Shipyard will receive 50% of this consideration in cash and the remaining 50% in shares of the joint venture company. The ISRF, located at Willingdon Island, was constructed at a cost of ₹970 crore and has a third-party valuation of ₹1,800 crore, representing about 30.55% of Cochin Shipyard's net worth of ₹5,892.83 crore as on March 31, 2026.
Operational details
The facility covers around 30 hectares and can handle vessels up to 130 metres in length and 6,000 tonnes in weight. It features a 6,000-tonne capacity ship lift and transfer system, six workstations, and approximately 1,400 metres of berthing space. The facility can repair up to six vessels simultaneously with an annual throughput capacity of up to 82 ships.
Commercial operations commenced on August 12, 2024. The ISRF reported revenue of ₹207.33 crore during FY26, which accounted for about 4.81% of Cochin Shipyard's total revenue from operations. The joint venture also envisages capacity augmentation through the addition of ten workstations.
Governance and approvals
The joint venture company's board will consist of five directors. Drydocks World Dubai will nominate three directors, including senior management personnel such as the CEO, CFO, and COO. Cochin Shipyard will nominate two directors.
The proposal requires approvals from the Cochin Port Authority, the Government of India (Ministry of Ports, Shipping and Waterways; Department of Investment and Public Asset Management), and shareholders. The definitive agreements are proposed to be signed on September 11, 2026, with implementation expected before the end of the current financial year.
Historical Stock Returns for Cochin Shipyard
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.61% | +4.17% | +1.17% | +3.17% | -6.98% | +728.04% |
How might the 50% cash consideration impact Cochin Shipyard's immediate liquidity and capital allocation strategy for other expansion projects?
What are the potential synergies and operational risks associated with Drydocks World Dubai managing three out of five board seats despite equal equity ownership?
Could the planned addition of ten workstations significantly alter the competitive landscape for international ship repair services in the Indian Ocean region?
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