MDL is planning on developing a greenfield shipyard across the Mumbai harbour at Nhava/Gavan, with a shiplift, wet basin, workshops, stores, and a ship repair facility spread over an area of 40 acres

Apart from constructing, and repairing and refitting, surface and undersea combatants, MDL also makes and repairs commercial vessels like cargo ships, multipurpose support vessels, barges, tugs, dredgers and water tankers. It has to date built 795 vessels, including 25 warships, four missile boats, three submarines, six Leander class, three Godavari class and three Shivalik class frigates, three corvettes, and six destroyers.

Recommending “buy” for the offer, ICICI Securities had commented that as MDL was “the only shipbuilder to have built destroyers and conventional submarines”, it could have an edge in future orders. It predicted a better growth outlook for the company in the long run, considering its strong order book, superior infrastructure facilities, and debt-free status.

MDL’s total income grew from Rs5,252 crore in 2018-19 to Rs5,567 crore last year. Its profits, however, sagged from Rs517 crore to Rs415 crore over these last two years. Its order book, as on 30 June 2019, was worth Rs54,283 crore for building four P-15 B destroyers, four P-17A stealth frigates, five P-75 Scorpene class submarines, repairing and refitting a ship, and one medium refit and life certification of a submarine for the Indian Navy.

With its activities expanding, MDL is planning on developing a greenfield shipyard across the Mumbai harbour at Nhava/Gavan, with a shiplift, wet basin, workshops, stores, and a ship repair facility spread over an area of 40 acres. It seeks to initiate infrastructure development upon securing “all relevant title of land and statutory clearances”.

The company is besides acquiring a contiguous land parcel from the Mumbai Port Trust (MbPT) that will help expand still further its capacity and capability to undertake refits and repairs simultaneously with new builds.