Cochin Shipyard to raise ₹6,000 cr for capex

Economic Times
Economic Times
2M ago
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Cochin Shipyard is set to raise ₹6,000 crore for expansion over the next five to six years, driven by a strong order pipeline. This investment is crucial for enhancing shipbuilding and repair capabilities.
Cochin Shipyard to raise ₹6,000 cr for capex
A What happened
Cochin Shipyard Limited (CSL) has announced plans to invest ₹6,000 crore over the next five to six years, primarily to enhance its shipbuilding and repair capabilities. The funding will be sourced from a mix of government schemes, multilateral loans, blue bonds, and internal accruals. This strategic investment is driven by a strong order pipeline and new contracts, reflecting CSL's commitment to expanding its presence in the global commercial vessel market. Additionally, CSL is considering a greenfield shipyard project, which is still in the conceptual phase and could require an investment of $2-3 billion. The company has also secured new commercial shipbuilding orders from both European and domestic clients, while defense contracts from the Indian Navy continue to anchor its business, accounting for about two-thirds of its total order book.

Key insights

  • 1

    Diverse Funding Sources: CSL plans to utilize multiple funding sources including government schemes and blue bonds.

  • 2

    Expansion Plans: Investment will enhance shipbuilding and repair capabilities.

  • 3

    Greenfield Project Consideration: CSL is exploring a new shipyard project requiring significant investment.

Takeaways

Cochin Shipyard's substantial investment plan is poised to strengthen its operational capabilities and market position, particularly in the commercial and defense sectors.

Topics

Business & Markets Economy