Cochin Shipyard Signs MoU with A.P. Moller-Maersk for Shipbuilding and Maintenance Partnership

On February 17, 2025, Cochin Shipyard Limited (CSL), India’s state-owned shipbuilding giant, announced that it had signed a memorandum of understanding (MoU) with A.P. Moller–Maersk, one of the world’s leading shipping companies.

The agreement aims to explore collaboration opportunities in ship repair, maintenance, and shipbuilding within India, aligning with the country’s goal to enhance its maritime sector.

Focus Areas of the Collaboration

As per the MoU, CSL and A.P. Moller–Maersk will collaborate on various initiatives, including sharing technical expertise for ship maintenance and repair, dry docking, and new shipbuilding opportunities.

Additionally, both companies will jointly work on training programs and skill development initiatives for the employees of CSL and Maersk, further strengthening the technical capabilities of the Indian maritime workforce.

Government’s Commitment to Maritime Industry Growth

This partnership comes at a time when the Indian government is taking steps to bolster the nation’s maritime industry.

In the Union Budget 2025-26, Union Finance Minister Nirmala Sitharaman announced the establishment of a ₹25,000 crore “Maritime Development Fund,” aimed at enhancing competition within the maritime sector. The government plans to contribute 49% of the total corpus, with the remaining funds to be provided by private sector firms and ports.

Customs Duty Exemption to Boost Competitiveness

In addition, the government has proposed continuing the exemption of Basic Customs Duty (BCD) on raw materials, components, consumables, and parts used in ship manufacturing for the next ten years.

This initiative is designed to make the Indian maritime industry more competitive and encourage the growth of the shipbuilding sector.

Strengthening India’s Maritime Infrastructure

The collaboration between Cochin Shipyard and A.P. Moller–Maersk marks a significant step in India’s efforts to develop a world-class maritime industry.

With the government’s proactive support and private sector engagement, the maritime sector is expected to experience substantial growth and modernisation in the coming years.

Stock Performance 

On February 18, 2025, Cochin Shipyard share price traded 2.62% lower at ₹1,183.75 at 10:25 AM (IST). Cochin Shipyard’s share price reached a 52-week high of ₹2,977.10, and a 52-week low of ₹712.90. As per BSE, the total traded volume for the stock stood at 0.24 lakh shares with a turnover of ₹2.90 crores.

At the current price, Cochin Shipyard shares are trading at a price-to-earnings (P/E) ratio of 37.84x, based on its trailing 12-month earnings per share (EPS) of ₹31.28, and a price-to-book (P/B) ratio of 5.86, according to exchange data.

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