2 weeks Ago By NDTV Profit News
Mazagon Dock Shipbuilders Ltd. has a mixed bag of orders in both the commercial and defence sectors, and is targeting execution of orders worth Rs 10,000 crore in the current financial year, according to a top executive."So, we have different projects for the warship building," Biju George, chairperson and managing director (additional charge), told NDTV Profit in a conversation.
"We have a P15B project, which has been completed, but the contractual guarantee obligations are ongoing."Similarly, the company has to deliver the remaining submarines under the P75 Project, with the next slated for delivery around August–September and the next one year, George said."We are doing a refit for INS Kalvari and conducting the medium refit life certification for the submarine INS Shankush.
Approximately Rs 800 crore worth of export orders," he said.The company, which has a current order book of Rs 33,000 crore, is a frontrunner for significant future defence contracts, including follow-on orders for P75I submarines and next-generation destroyers. These projects are currently in the negotiation and evaluation stages, and timelines for final order materialisation remain uncertain, according to George.
"The procedure takes time, so we are waiting for those."George underscored that Mazagon was aiming for a capital expenditure of approximately Rs 5,000 crore over the next four to five years, which would be fully funded through internal accruals. He added that this investment would go into developing two new greenfield facilities — one adjacent to its existing premises in Mumbai and another at Nhava Sheva — which are expected to triple the company's shipbuilding and repair capacity once operational.
Mazagon Dock Declares Second Interim DividendGeorge emphasised the company’s intent to scale up its presence in the non-defence sector, highlighting growing opportunities in the commercial maritime segment, especially with the Maritime Development Fund and enhancement of financial assistance schemes."We have one leg in the defence space and one in the commercial space right now. We would like to increase our revenue share in the non-defence space as well," he said.
On demand, George said there were a lot of requirements on the domestic front, specifically in the segment of green transition. "Similarly, for exports, the short-sea shipping market is booming. The West is also looking to the East for shipbuilding.
So we have a lot of potential," he added.Most of the Indian shipyards are flush with good export orders and this is going to be on a rising trend, considering the geopolitical scenario panning out currently, according to George.WatchMazagon Dock Eyes Orderbook Diversification Beyond Navy.
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