The Ministry of Defence (MoD) announced on December 30, 2024, that it has finalized two contracts totaling approximately ₹2,867 crore to enhance the capabilities of Indian submarines. These agreements were signed in New Delhi in the presence of Defence Secretary Rajesh Kumar Singh.
The first contract, worth ₹1,990 crore, was signed with Mazagon Dock Shipbuilders Ltd (MDL), Mumbai, for the development of an air independent propulsion (AIP) plug. This plug, based on technology developed by the Defence Research and Development Organisation (DRDO), will be integrated into Indian submarines to enhance their underwater endurance. The project aligns with the ‘Aatmanirbhar Bharat’ initiative and is expected to generate approximately three lakh man-days of employment.
The second agreement, valued at ₹877 crore, was signed with Naval Group, France. This contract involves the integration of an electronic heavy weight torpedo (EHWT) system, developed in collaboration with DRDO, into Kalvari-class submarines. This addition will significantly boost the firepower of these submarines. The integration will be a joint effort by the Indian Navy, DRDO, and Naval Group.
Mazagon Dock Shipbuilders Ltd also reported a strong financial performance for the quarter. The company’s net profit rose 76% year-on-year (YoY) to ₹585 crore, while revenue increased by 51% to ₹2,757 crore compared to the same period last year.
Despite a substantial increase in provisions, which rose to ₹58 crore from ₹22 crore a year ago, the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) surged to ₹510 crore from ₹176 crore in the same quarter last year. The EBITDA margin for the quarter more than doubled to 18.5% from 9.6% a year ago. Mazagon Dock’s order book remains robust, standing at ₹39,872 crore as of the end of the quarter.
Mazagon Dock Shipbuilders Ltd (MDL) is a leading state-owned shipyard in India, known for constructing warships and submarines for the Indian Navy and other clients. Located in Mumbai, MDL has played a pivotal role in strengthening India’s maritime defense capabilities.
The company specializes in building a wide range of vessels, including destroyers, frigates, and submarines, and is also involved in commercial shipbuilding and offshore platforms. With a strong legacy dating back to 1774, Mazagon Dock has earned a reputation for its technical expertise, innovation, and commitment to quality, making it a critical asset in India’s shipbuilding industry.
