Cochin Shipyard and Drydocks World Move to Build Global Ship-Repair Hub Around Kochi’s ISRF

Cochin Shipyard Limited is moving ahead with a major restructuring of its ship-repair business in Kochi, approving a 50:50 joint venture with Drydocks World–Dubai FZCO to operate and expand the International Ship Repair Facility at Willingdon Island.

The board of the state-owned shipbuilder approved the proposal on September 9, 2026. Under the planned transaction, Cochin Shipyard will transfer the International Ship Repair Facility, or ISRF, to the new joint venture as a going concern for not less than ₹1,800 crore.

Half of the consideration will be paid to CSL in cash, while the remaining half will be received as equity in the joint venture, leaving Cochin Shipyard and Drydocks World with 50% ownership each.

The deal represents a major step forward from the cooperation agreements signed by the two companies during 2025 and could turn Kochi into a much larger ship-repair centre serving Indian as well as international vessels.

₹1,800-Crore Facility Moves Into Joint Venture

The proposed joint venture will be incorporated as a private company with its registered office in Kochi.

It will own, operate and manage CSL’s International Ship Repair Facility for the dry-docking, maintenance, repair and overhaul of commercial and naval vessels measuring up to 130 metres and weighing up to 6,000 tonnes.

The ₹1,800-crore transaction value is based on an independent third-party valuation of the ISRF. Cochin Shipyard says the amount represents about 30.55% of its net worth of ₹5,892.83 crore as of March 31, 2026.

The facility itself generated ₹207.33 crore in revenue during FY2025-26, equivalent to around 4.81% of CSL’s revenue from operations.

Cochin Shipyard has listed the September 9 board decision as an official investor disclosure under Regulation 30 of the SEBI Listing Regulations.

Ten More Workstations Planned

Expansion of the Kochi facility forms a central part of the proposed partnership.

The ISRF currently has a 6,000-tonne ship-lift and transfer system, six workstations and around 1,400 metres of berthing space. CSL says it can presently accommodate repairs to as many as six vessels simultaneously, with an annual throughput capacity of up to 82 ships.

The Drydocks World joint venture plans to add another 10 workstations, substantially increasing the number of vessels that can be handled within the ship-repair complex.

CSL’s own description of the facility says the ship lift can accommodate vessels measuring about 130 metres by 25 metres, with a maximum lightweight of 6,000 tonnes. Commercial ship-repair operations at the new facility began in August 2024.

The ISRF also houses a maritime industrial park where specialist maritime companies can establish supporting operations, creating the basis for a wider repair and maintenance ecosystem rather than a standalone dry-docking facility.

Drydocks World Brings Global Repair Experience

Drydocks World is part of DP World and operates one of the largest ship-repair facilities in the Middle East from Dubai.

Its operations extend beyond routine ship repair to vessel conversions, offshore fabrication, FPSO work and projects for the offshore energy sector.

For Cochin Shipyard, bringing Drydocks World into the ISRF is intended to introduce international operating practices, advanced technologies and more efficient ship-repair processes.

CSL expects the partnership to improve turnaround times while allowing the Kochi facility to compete for more complex and higher-value repair work.

The governance structure reflects the operational role expected from Drydocks World. Although ownership will be equally divided, Drydocks World will be entitled to nominate three directors to the five-member board, while CSL will nominate two. The Dubai company will also have the right to nominate senior management positions including the CEO, CFO and COO where applicable.

Partnership Has Been Building Since 2025

The September 2026 proposal is the culmination of more than a year of formal cooperation between the two companies.

On April 11, 2025, Cochin Shipyard and Drydocks World signed an MoU to explore the development of ship-repair clusters along India’s coastline.

The agreement, supported by the Ministry of Ports, Shipping and Waterways, envisaged combining CSL’s Indian facilities and market presence with Drydocks World’s experience in operating large international repair yards. It also covered possible cooperation in offshore fabrication.

The relationship progressed further on October 29, 2025, when the companies signed an Agreement of Heads of Terms focused specifically on developing India’s first ship-repair cluster around the ISRF in Kochi.

At the time, Drydocks World and CSL said they would evaluate operating models capable of bringing global expertise and international ship-repair work into the Kochi ecosystem.

The new 50:50 joint venture converts that earlier strategic partnership into a defined commercial structure.

Agreements Finalised, but Approvals Still Required

The transaction has not yet reached financial closure.

Cochin Shipyard and Drydocks World have finalised the Joint Venture Agreement, Shareholders Agreement, Business Transfer Agreement and Licence Agreement.

The Joint Venture Agreement is proposed to be signed on September 11, 2026. The remaining agreements are expected to be executed after incorporation of the new company and receipt of the required approvals.

Those clearances include approval from the Cochin Port Authority, which leases the ISRF site to Cochin Shipyard, as well as the Ministry of Ports, Shipping and Waterways, the Department of Investment and Public Asset Management under the Ministry of Finance, and CSL’s shareholders.

Cochin Shipyard expects the overall proposal to be implemented before the end of FY2026-27.

That distinction is important: the board has approved the transaction and the principal agreements have been negotiated, but the ₹1,800-crore transfer itself remains subject to statutory and government approvals.

Why Kochi Matters

Kochi sits close to major international shipping routes connecting the Arabian Sea, Indian Ocean and the approaches to the Gulf.

India handles an enormous volume of merchant shipping through its ports and waters, but a portion of higher-value ship-repair and conversion work has historically gone to established overseas yards.

Building more internationally competitive repair capacity inside India could retain a greater share of this business while reducing the need for Indian vessels to travel abroad for major maintenance.

The ISRF was created with precisely that objective.

Developed at Willingdon Island, the facility was inaugurated in January 2024, with commercial operations beginning in August that year. Its ship-lift system allows vessels to be moved from the water onto shore-based workstations, making it possible to work on several ships independently rather than occupying a conventional dry dock for the entire repair period.

The proposed addition of 10 workstations could significantly expand that operating model.

Building an Indian Ship-Repair Cluster

The larger ambition is not simply to increase the number of vessels repaired by Cochin Shipyard.

CSL and Drydocks World want to develop a ship-repair cluster around the facility, bringing specialist suppliers, equipment manufacturers, engineering companies and marine-service providers into the same ecosystem.

DP World said when the partnership was announced in 2025 that the cooperation was intended to bring global best practices to India’s ship-repair ecosystem and add significant capacity.

For Cochin Shipyard, this could complement its rapidly expanding shipbuilding portfolio by developing ship repair into a larger international business.

For Drydocks World, Kochi provides access to India’s growing maritime market and a location close to busy international shipping corridors.

The proposal also fits the goals of Maritime India Vision 2030, Maritime Amrit Kaal Vision 2047 and Aatmanirbhar Bharat. CSL has specifically linked the project to increasing India’s ability to undertake sophisticated and high-value ship repairs domestically.

If the remaining approvals are secured and the planned expansion proceeds, the Willingdon Island facility could develop from a relatively new CSL repair yard into a much larger India-based ship maintenance, repair and overhaul hub with international reach.

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References

Cochin Shipyard Limited — September 9, 2026
CSL Board Approves the Proposal for Forming a Joint Venture with Drydocks World Dubai–FZCO (DDW)
Official Regulation 30 disclosure covering the 50:50 JV, ₹1,800-crore ISRF transfer, ownership structure, proposed capacity expansion and regulatory approvals.

Cochin Shipyard Limited — International Ship Repair Facility
Official description of the Willingdon Island ISRF, including its 6,000-tonne ship lift, vessel dimensions, workstations and commencement of operations.

DP World / Drydocks World — April 11, 2025
Drydocks World & Cochin Shipyard Limited Unite to Strengthen India’s Maritime Infrastructure
Official announcement of the original partnership to develop ship-repair clusters in India.

DP World / Drydocks World — October 29, 2025
Drydocks World and Cochin Shipyard Limited Enter Agreement to Enhance India’s First Ship Repair Cluster in Kerala
Official announcement advancing cooperation around the International Ship Repair Facility in Kochi.

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