50:50 joint venture to operate Willingdon Island ship repair complex
Cochin — Cochin Shipyard has approved the formation of a 50:50 joint venture with Drydocks World–Dubai FZCO, a company in the DP World group, to operate and manage its International Ship Repair Facility (ISRF) on Willingdon Island in Kochi. The transaction envisages a slump-sale of the ISRF to the new entity for a consideration of Rs 1,800 crore, half to be paid in cash and the remainder by issuance of shares in the joint venture.
The ISRF, spread across roughly 30 hectares on land and water leased from the Cochin Port Authority for 60 years, was built at a cost of Rs 970 crore. It features a 6,000-tonne ship lift and transfer system, six workstations and about 1,400 metres of berthing space, enabling simultaneous handling of six vessels. The facility was inaugurated in January 2024 and began commercial operations in August 2024.
- Valuation and financials: The Rs 1,800 crore valuation equals about 30.55 per cent of Cochin Shipyard's net worth as of 31 March 2026. The facility reported revenue of Rs 207.33 crore in FY26, representing roughly 4.81 per cent of the shipyard's revenue from operations.
- Operational scope: The JV will handle dry-docking, maintenance, repair and overhaul for commercial and naval vessels up to 130 metres in length and 6,000 tonnes in weight, with an annual throughput capacity of up to 82 ships.
- Expansion plans: Partners intend to increase the number of workstations from six to ten by adding four more berths.
"Drydocks World will nominate three of the five directors and will have the right to nominate senior management personnel, including the CEO, CFO and COO," the company statement said.
The governance terms reported indicate Drydocks World will nominate three of the five directors on the board, while Cochin Shipyard will nominate the remaining two. In addition, Drydocks World will have rights to appoint key senior management, including the chief executive officer, chief financial officer and chief operating officer, providing the Dubai-based firm a substantial operational role.
Local implications and capacity enhancement
For Kochi, the deal is significant on several fronts: it brings an international ship-repair operator into direct management of a major local asset; it aims to boost the city's ship repair capacity; and it reallocates a sizable portion of Cochin Shipyard's balance-sheet value into a corporate JV structure.
Built to service medium-sized commercial and naval vessels, the ISRF already offered the city enhanced dry-docking capability through its 6,000-tonne lift and transfer system. Under the new arrangement, the partners plan to raise berth capacity to ten workstations, which—if realised—would increase parallel repair capacity and could shorten vessel turnaround times for regional shipping operators calling at Kochi.
| Item | Detail |
|---|---|
| Sale consideration | Rs 1,800 crore |
| Construction cost | Rs 970 crore |
| Area | ~30 hectares |
| Berthing | ~1,400 metres |
| Workstations (current / planned) | 6 / 10 |
| Throughput capacity | Up to 82 ships annually |
| Vessel size handled | Up to 130 m and 6,000 tonnes |
Financially, the structuring—half cash and half equity—means Cochin Shipyard will receive immediate funds while retaining an ownership stake in the operating company. The slump-sale mechanism transfers the facility as a going concern to the JV; the reported valuation represents a material share of Cochin Shipyard's net worth as on 31 March 2026.
From a governance perspective, Drydocks World's right to nominate a majority of the board and key executives signals that operational control will rest largely with the DP World group affiliate, while Cochin Shipyard remains an equal shareholder. The partners will jointly own, operate and manage the ISRF for repairs and overhaul of eligible vessels.
Locally, officials and industry observers will be watching for how the JV's managerial changes and planned expansion affect employment, subcontracting opportunities and service rates at the Willingdon Island complex. The arrangement places a significant international operator at the helm of one of Kochi's major maritime service assets, a development that could reshape the city's position in regional ship-repair markets.
