Mazagon Dock Shipbuilders Ltd is expecting an order boost with approval for three additional submarines within FY24, said Sanjeev Singhal, Chairman and Managing Director of the defence public sector undertaking (PSU). The company is in talks with Sri Lanka, Brazil, and South America for exports and will collaborate with the private sector on emerging technologies, Singhal said while adding that the company's existing order book stands at approximately ₹35000 crore.
Mazagon Dock builds warships and submarines for the Indian Navy and is charting a course toward global expansion, targeting exports and diversification into commercial vessels will be focussing on exports, commercial ships as well for diversification.
In a conversation with CNBC-TV18, Singhal highlighted the company's strategic focus on exports and joint ventures (JVs) with foreign entities.
"MDL's growth will primarily stem from war platforms, naval projects, and a significant emphasis on exports. Diversification into repair, recruits, and commercial vessels aims to contribute to our revenues, albeit to a smaller extent. Our core sector will remain the construction of warships and submarines," he told CNBC-TV18.
On export destinations, he said, "We are eyeing opportunities in various countries, including Sri Lanka, South America, and Brazil. While positive signals have been received, concrete developments are yet to materialise. MDL will seize mutually beneficial opportunities wherever they arise."
The company is actively exploring joint ventures abroad for both exports and establishing shipyards. Singhal added, "We are open to joint ventures within India as well. Our engagement with the private sector in emerging technologies has been ongoing for the past three years. If a JV route is considered more conducive for investments, we are willing to explore that as well."
Mazagon Dock has been a top performer with its stock rising 180% last year. The government owns an 84.8% stake in MDL.
The company recently received an order for six next-generation offshore patrol vessels for the Indian Coast Guard at a cost of ₹1,615 crore. The company also received an order for three multipurpose hybrid-powered vessels for $42 million. The shipbuilding company also received a contract for medium refit cum life certification for the INS Shankush submarine for over ₹2,600 crore.
Read Here | Working on emerging tech policy, expect 45% of new orders to go to private sector: Defence Secy
Looking ahead, Singhal expressed confidence in the company's growth for the next financial year (FY25), citing fresh orders totaling approximately ₹6,000 crore added until December of the current financial year.
However, amidst reports of the government considering a 10% stake sale in MDL through the OFS route by March, Singhal remained cautious, stating, "Speculation surrounds government stakes, and decisions on disinvestment rest with DIPAM, in consultation with the defence ministry, our administrative ministry. We cannot provide insights into these speculations."
(Edited by : Ajay Vaishnav)
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