Mazagon Dock Begins Production of First Cargo Vessel for Denmark’s Navi Merchants

Mazagon Dock Shipbuilders Ltd (MDL), a Navratna defence public sector undertaking (DPSU), has started the production of its first Multipurpose Cargo Vessel (MPV) for Navi Merchants, a Denmark-based company. 

The plate-cutting ceremony, marking the beginning of the project, was attended by Mr Simon Christensen, CEO of Navi Merchants, as the Chief Guest, along with MDL’s Chairman and Managing Director, Mr Sanjeev Singhal, and other senior officials.

MDL signed a contract with Navi Merchants to design, construct, and deliver six vessels, with an option for 4 more. Each vessel will have a capacity of 7,500 deadweight tons (DWT), and the project is valued at approximately $86.05 million (around ₹700 crore). These vessels will feature hybrid propulsion systems designed to meet strict emission standards and will be classified under Det Norske Veritas (DNV) regulations.

The ships will be Ice Class 1B, equipped with a medium-speed diesel engine, a controllable pitch propeller, and Electrical Energy Storage systems to ensure safety and compliance with DNV’s Battery (Safety) classification. Built for global operations, these vessels are versatile and capable of carrying various types of cargo, including dry bulk, containers, project cargo, steel products, forest goods, and hazardous materials.

The first vessel is set to be delivered in April 2026. Today’s plate cutting ceremony officially kicks off the production work for this important project.

Financial Highlights

Mazagon Dock Shipbuilders showed strong performance in their Q1 results. The company’s revenue grew by 8.48% compared to the same period last year, and profit surged by an impressive 121.45%. However, revenue dropped by 24.06% from the previous quarter, though profit still increased by 5%.

The company’s Selling, General & Administrative (SG&A) expenses saw a slight increase of 0.68% from the previous quarter and 4.28% from last year. Despite higher expenses, operating income rose by 23.48% quarter-over-quarter and saw an exceptional 307.29% growth year-over-year.

About Mazagon Dock Shipbuilders Limited

Mazagon Dock Shipbuilders Limited (MDL), based in Mumbai and founded in 1774, is one of India’s leading shipyards. Starting as a small dry dock, MDL has grown into a well-known shipbuilding company. Since 1960, it has built 801 vessels, including warships, submarines, cargo ships, passenger ships, and offshore platforms.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.