Cochin Shipyard inks MoUs with HD Korea & Tamil Nadu govt, check stock reaction

Shares of Cochin Shipyard Ltd ended lower on Tuesday even as the defence firm inked a Memorandum of Understanding (MoU) with HD Korea Shipbuilding and Offshore Engineering (KSOE) at the 'Samudra se Samriddhi' event in Bhavnagar, Gujarat.

Cochin Shipyard stock slipped 2.41% intra day to a low of Rs 1876 on Tuesday. Later, the stock ended 1.97% lower at Rs 1884.60 onBSE. Market cap of the firm fell to Rs 49,580 crore. 

This partnership brings together Cochin Shipyard's strong domestic expertise and infrastructure with KSOE's advanced technology and international experience, aiming to boost India's shipbuilding capabilities. According to the Ministry of Ports, Shipping and Waterways, under the MoU, Cochin Shipyard's 310-metre dry dock will be used to construct large vessels like Suezmax tankers, container ships, and Capesize bulk carriers, with a capacity of up to six vessels per year, it added.

A dedicated block fabrication facility spanning approximately 80 acres is planned at Kochi, with an annual capacity of 1.2 lakh metric tonnes and an investment of ₹3,700 crore to support the new venture. This initiative is expected to create around 2,000 direct jobs and significant indirect employment opportunities, the ministry said.

"The collaboration will also focus on joint execution of shipbuilding projects at CSL’s existing facilities during the transition phase, while simultaneously exploring opportunities in new business areas, greenfield shipyards, and skill development," the ministry said. The project further includes a first-phase estimate of creating about 10,000 jobs, potentially with a state-of-the-art ship repair facility.

Cochin Shipyard has also inked an MoU with the Tamil Nadu government as part of its broader long-term growth strategy. The company is considering a greenfield investment of around ₹15,000 crore to establish a shipyard in Tamil Nadu in collaboration with its Korean partner, the ministry said. The move places Cochin Shipyard alongside peers like Garden Reach Shipbuilders, who have recently secured multiple MoUs within the industry.