Cochin Shipyard and Drydocks World Sign Ship Repair Joint Venture Agreement
Cochin Shipyard and Drydocks World have signed an agreement to establish a joint venture focused on ship repair, strengthening their presence in India’s growing maritime industry and creating a larger platform for vessel repair, marine maintenance and related services. The proposed partnership is expected to expand capabilities in the shipping industry, while supporting wider opportunities in shipbuilding, offshore engineering and marine MRO.
Under the agreement, Drydocks World will lead the operations of the joint venture and will have the right to nominate key management personnel, including the Chief Executive Officer (CEO), Chief Financial Officer (CFO) and Chief Operating Officer (COO).
As part of the proposed transaction, Cochin Shipyard will transfer its ship repair facility on Willingdon Island to the joint venture as a going concern for a consideration of no less than ₹18 billion, equivalent to approximately US$189 million.
Half of the transaction consideration, based on the minimum valuation, will be paid in cash. This amounts to approximately US$95 million, while the remaining consideration will be settled through shares in the joint venture.
The proposed transfer of the facility remains subject to approvals from the Cochin Port Authority, India’s Ministry of Ports, Shipping and Waterways, the Department of Investment and Public Asset Management, and the shareholders of Cochin Shipyard. Cochin Shipyard expects the transaction to be completed by March 2027, subject to the required approvals.
International Ship Repair Facility Valued at Nearly Twice Construction Cost
The proposed transaction places a significantly higher value on the International Ship Repair Facility (ISRF) than its original construction cost. Cochin Shipyard initially invested approximately ₹9.7 billion to develop the facility.
The ISRF project was completed in early 2024 and commenced commercial operations in August. With the proposed transaction value of at least ₹18 billion, the valuation of the facility is nearly double its initial construction cost.
The development represents an important asset for Cochin Shipyard as the company expands its activities beyond traditional shipbuilding and strengthens its position in the international ship repair and marine maintenance market.
The ISRF covers approximately 30 hectares, including land and water leased from the Cochin Port Authority. The facility is equipped with a 6,000-ton ship lift, a transshipment system, six workstations and approximately 1,400 meters of berthing space.
The facility can accommodate six to seven vessels, each measuring up to 130 meters in length, for simultaneous repair work. Its maximum annual repair capacity stands at 82 vessels, providing substantial infrastructure for vessel maintenance, repair and refit operations.
The facility has already generated significant commercial activity since beginning operations. During fiscal year 2025–26, the ISRF completed repair and refit projects for approximately 35 vessels.
During the same fiscal year, the facility generated operating revenue of US$21.8 million, accounting for approximately 4.8% of Cochin Shipyard’s total operating revenue.
Cochin Shipyard and Drydocks World Expand Ship Repair Cooperation
The proposed joint venture follows a series of steps taken by Cochin Shipyard and Drydocks World to develop cooperation in India’s ship repair and offshore engineering sectors.
The two companies first expressed their intention to collaborate in April 2025, when they proposed establishing a ship repair cluster and potentially developing offshore manufacturing operations in Cochin and Vadinar.
Their cooperation progressed in October 2025, when the two companies signed a framework agreement to develop India’s first ship repair cluster at the International Ship Repair Facility.
The proposed joint venture represents a further step in that collaboration and could turn the earlier plans for an expanded ship repair cluster into a broader commercial operation.
By combining the existing ISRF infrastructure with Drydocks World’s operational role, the partnership is positioned to support vessel repair and refit activities while expanding the scope of maritime services available through the facility.
Global Shipping Partnerships Strengthen Cochin Shipyard’s Expansion
The proposed joint venture comes as Cochin Shipyard is actively engaging with major international shipping and offshore engineering companies to broaden its business partnerships.
Maersk has reached a memorandum of understanding with Cochin Shipyard to explore opportunities in ship repair and ship construction. The agreement adds another major international shipping company to Cochin Shipyard’s expanding network of industry partnerships.
Cochin Shipyard has also signed an agreement with Seatrium, a Singapore-based offshore engineering company, to undertake marine maintenance, repair and overhaul (MRO) projects in India and across Asia.
These partnerships reflect the company’s efforts to expand its activities across multiple segments of the maritime sector, including ship repair, shipbuilding, marine MRO and offshore engineering.
The Drydocks World joint venture could further strengthen this strategy by expanding the commercial use of the ISRF and supporting its role in India’s ship repair market.
With its 30-hectare footprint, 6,000-ton ship lift, six workstations, approximately 1,400 meters of berthing space and annual repair capacity of up to 82 vessels, the ISRF provides a substantial infrastructure base for vessel repair and refit operations.
However, the proposed asset transfer is not yet final, as it remains subject to the required regulatory and shareholder approvals. If the approvals are secured and the transaction is completed as expected by March 2027, the joint venture will mark another significant development in the expansion of India’s ship repair, maritime infrastructure and offshore engineering capabilities.
