MDL: Scaling new Heights
Mazagon Dock Shipbuilders Limited (MDL) was established nearly over 250 years ago. In the year 1774, a small dry dock was built to service ships of the British East India Company. With the passage of around 250 years, the Yard has grown from a single unit repair establishment into a multifunctional, state-of-the-art shipyard, building various types of warships for the Indian Navy.
It passed through various ownerships like the P&O lines and the British India Steam Navigational Company, till it was taken over by the Government of India and established as a Public Sector Undertaking under the Ministry of Defence in 1960. It is today the Country’s premier and lead warship building yard.
MDL, today, is the premier shipbuilding yard in the country, producing world class state of the art ships and submarines. Over the last six decades, MDL has delivered over 796 ships/submarines/platforms to various customers both in India and abroad. Out of which 43 have been delivered to the Indian Navy, which form a formidable part of the Fleet of the Indian Navy. The range of platforms delivered to various customers range from Destroyers, Stealth Frigates, Submarines, Missile Boats, Corvettes, Offshore Patrol Vessels, Multipurpose Support Vessels, Offshore Supply Vessels, Dredgers, Tugs and Cargo-cum-Passenger Vessels. The main customer for MDL is the Indian Navy. Presently, MDL is involved in building four Stealth Destroyers, four Frigates and four Scorpene class submarines for the Indian Navy. These ships/submarines are slated to be delivered in a staggered manner over the next 6-8 years.
MDL is the only Shipyard with a proven track record of constructing conventional submarines and destroyers. The key capabilities with which MDL has achieved and sustained the reputation of being the premier ship building yard includes:
- Integrating Weapon Systems.
- Fabricating three types of Pressure Hull
- Series production capability
- State-of-the-art Shore Integration Facility (SIF) created for complete Combat system integration prior installation. This is the first of its kind in India.
The current order book status consist of four P15B Missile Destroyers, four P17A Stealth Frigates, six Scorpene Submarines and order for Medium Refit and Life Certification (MRLC) of INS Shishumar. Besides, MDL is bidding for P75-I Submarines and refits of warships for the Indian Navy/MoD.
MDL has been continuously striving to enhance the indigenous content in the successive deliveries of ships and submarines. A Make-in-India cell is active in MDL since May 2015 and to further boost and strengthen the indigenisation effort, a dedicated Indigenization Department has been established in MDL. MDL’s efforts and commitment towards indigenization are evident from the fact that the percentage of indigenization of surface ships has gone up to 75% approximately.
MDL currently operate from one location in Mumbai, which limits its expansion programme.However, the transfer of title of Nhava Yard to MDL has openedup avenues for growth and expansion.Nhavayard is spread over an area of 37 acres with a 141m long jetty.
MDL is planning to develop the Nhava Yard, a greenfield shipyard to carry out ship building and ship repair activities.
Over the years, the shipyard has created facilities that can handle complex shipbuilding projects. MDL is equipped with state-of-the-art infrastructure and processes, which include a world class design facility with a futuristic virtual reality centre and sophisticated 3D software.
To keep up with changing times, Mazagon Dock has modernized its facilities to undertake modular construction by investing in a 300 ton Goliath crane, Module Shop with a retractable roof, a second wet basin, a Training Centre and a Submarine Assembly Workshop for a second line of submarines.
With the enhanced infrastructure, now, MDL has the capacity to simultaneouslyconstruct10 warships and 11 submarines.
“MAZAGON DOCK SHIPBUILDERS LIMITED is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offering of its Equity Shares and has filed a DRHP dated August 5, 2019, with the SEBI. Investors should note that investment in Equity Shares involves a high degree of risk. For details refer to the DRHP, including the section titled “Risk Factors” on page 20 of the DRHP. The DRHP shall be made available on the website of the SEBI at www.sebi.gov.in, BSE at www.bseindia.com, NSE at www.nseindia.com and is available on the websites of the BRLMs at www.yesinvest.in, www.axiscapital.co.in, www.edelweissfin.com, www.idfc.com/capital/index.htm and www.jmfl.com, respectively. Potential investors should not rely on the DRHP for any investment decision.
The Equity Shares have not been and will not be registered under the United States Securities Act, 1933, as amended (“the Securities Act”) and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S promulgated under the Securities Act (“Regulation S”)) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold only outside the United States and only to non-U.S. persons in reliance on Regulation S. Each purchaser of Equity Shares will be required to represent and agree, among other things, that such purchaser is a non-U.S. person acquiring the Equity Shares in an “offshore transaction” in accordance with Regulation S.
Due to various national security concerns, certain material information in relation to our business, operations and prospects has been classified as ‘confidential’ by the MoD and by us, for which we have filed the SEBI Exemption Application. As a result we have not (i) disclosed such information in the Draft Red Herring Prospectus; or, (ii) provided such information to the BRLMs, the legal counsels and / or other intermediaries involved in this Offer. We therefore cannot assure you that the Draft Red Herring Prospectus contains all material information as necessary for investors to make an informed investment decision and hence the Draft Red Herring Prospectus may not be complete to that extent. For further information please see “Risk Factors – As a result of national securities concerns, certain information in relation to our business and operations is classified as ‘secret and confidential’ pursuant to which we have not disclosed such information in this Draft Red Herring Prospectus nor provided such information to the BRLMs, other intermediaries and advisors involved in the Offer. Consequently, this Draft Red Herring Prospectus may not contain complete information about us, our products, business, operations, customers, etc. ” on page 23 of the DRHP.