Mazagon Dock up 3% on commencing production for Multipurpose Cargo Vessel

Mazagon Dock shares up: Shares of shipbuilding company Mazagon Dock Shipbuilders soared a little over 3 per cent to hit an intraday high of Rs 4,349.70 per share on Wednesday, September 25, 2024. 

The uptick in the share price came after the company announced that it has commenced the production activity for the first Multipurpose Cargo Vessel (MPV) for Navi Merchants, Denmark.

The contract, signed with Navi Merchants, involves designing, building, and delivering a total of six vessels, with an option for four more, each boasting a capacity of 7,500 DWT. The project, meanwhile, is valued at approximately $86.05 million (around Rs 700 crore).

Each vessel will feature hybrid propulsion technology designed to meet stringent emission standards and will be classified under DNV (Det Norske Veritas), the company said.

These Ice Class 1B vessels will be equipped with a single screw, controllable pitch medium-speed diesel engine, and incorporate Electrical Energy Storage systems to adhere to DNV Class notation Battery (Safety) for unrestricted global operations.

Mazagon Dock claimed that the versatile design allows these vessels to transport a wide variety of cargo, including dry bulk, project cargo, containers, steel products, and dangerous goods. 

The first vessel is scheduled for delivery in April 2026.

Mazagon Dock Shipbuilders Limited (MDL), established in 1774 and based in Mumbai, is one of India's leading shipbuilding firms. Since 1960, the company has launched 801 vessels, including a diverse range of warships, submarines, cargo and passenger ships, and offshore platforms.

MDL specialises in the defence sector, having constructed 802 vessels to date. This includes 28 warships, such as advanced destroyers and missile boats, as well as 7 submarines. The company's portfolio also includes Naval Platforms like Frigates, Destroyers, and Missile Boats, along with Merchant Ships and Oil Sector equipment such as Offshore Platforms and Jack-up rigs.

With an infrastructure capable of simultaneously handling 11 submarines and 10 warships, MDL has established a dedicated "Make in India" Department to focus on indigenisation. Approximately 75 per cent of the company's content is dedicated to warship construction, leveraging indigenous materials to significantly cut costs.

MDL's headquarters is located in Mumbai, serving the Western Naval Command of the Indian Navy. 

The company operates several shipbuilding facilities, including the North Yard, South Yard, Nhava Yard, and Anik Yard, with a specialised Submarine Construction Yard at the East Yard. The Alcock Yard, situated above the North Yard, and additional land adjacent to the South Yard support various construction activities, including modular workshops for shipbuilding, cradle workshops for submarines, a Goliath Crane, and a Wet Basin.

The market capitalisation of Mazagon Dock Shipbuilders is Rs 86,726.70 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE500 category. 

At 11:49 AM, shares of Mazagon Dock Shipbuilders were trading 1.85 per cent higher at Rs 4,300 per share. In comparison, BSE Sensex was trading 0.11 per cent lower at 84,821.04 levels.