Mazagon Dock Shipbuilders Ltd - Stock Valuation and Financial Performance

Mazagon Dock Shipbuilders was incorporated in Bombay as a private limited company on February 26, 1934 as Mazagon Dock Private Limited with the Registrar of Companies, Bombay under the Indian Companies Act, 1913. The company was thereafter converted to a public company pursuant to a special resolution passed at an extra-ordinary general meeting dated January 02, 1936. Pursuant to the provisions of section 23 of the Companies Act, 1956 and under order of the Central Government, conveyed by the Ministry of Finance, Department of Company Law Administration by their No. 18 (30)-CL 57 dated October 26/28, 1957, the company was converted into a private limited company and the name of the company was changed to Mazagon Dock Private Limited and a certificate of incorporation was issued by the Registrar of Companies, Bombay on December 10, 1957. Since the company was acquired by the Government of India in the year 1960, it became a government company on May 13, 1960 and the name of the company was changed to Mazagon Dock Limited and a fresh certificate of incorporation consequent to the change of name was issued by the Registrar of Companies, Bombay on December 23, 1960. Further, the name of the company was changed to Mazagon Dock Shipbuilders Limited to reflect its core competencies in shipbuilding and a fresh certificate of incorporation pursuant to the change of name was issued by the RoC on May 28, 2015. Subsequently, the company was converted to a public limited company and a certificate of incorporation consequent upon conversion to a public limited company was issued by the RoC on December 08, 2017.

The company is a defence public sector undertaking shipyard under the Department of Defence Production, MoD with a maximum shipbuilding and submarine capacity of 40,000 DWT, engaged in the construction and repair of warships and submarines for the MoD for use by the Indian Navy and other vessels for commercial clients. It is a wholly owned GoI company, conferred with the 'Mini-ratna-I' status in 2006, by the DPE. It is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy. It is also one of the initial shipyards to manufacture Corvettes (Veer and Khukri Class) in India.

Business area of the company

Mazagon Dock Shipbuilders' business divisions in which the company operates are (i) shipbuilding and (ii) submarine and heavy engineering. Its shipbuilding division includes the building and repair of naval ships. It is currently building four P-15 B destroyers and four P-17A stealth frigates and undertaking repair and refit of a ship for the MoD for use by the Indian Navy. Its submarine and heavy engineering division includes building, repair and refits of diesel electric submarines. It is currently building/ in the process of delivering four Scorpene class submarines under a transfer of technology agreement with Naval Group as well as one medium refit and life certification of a submarine for the MoD for use by the Indian Navy.

Product portfolio

Naval Platforms

• Destroyers
• Conventional Submarines
• Frigates
• Corvettes
• Missile Boat
• Offshore Patrol vessels
• Floating Border Outposts

Merchant Ships

• General Cargo Vessel
• Multipurpose Support Vessel
• Offshore Supply vessel
• Tugs
• Dredgers
• Passenger cum Cargo Vessel
• Water tankers
• Barges
• Trawlers
• Windmill towers Pontoons

Oil Sector

• Offshore Platforms
• Jack-up rigs

Major events in company’s history:

• 1934: Incorporated as a private company.
• 1960: Acquired by the GoI.
• 1972: Delivered the first frigate, INS Nilgiri.
• 1984: Inauguration of undertaking submarine construction.
• 1992: Commissoned first Indian built submarine, INS Shalki.
• 1997: Commissioned first destroyer, INS Delhi.
• 1998: Accredited with ISO certification for shipbuilding.
• 2000: Upgraded to Schedule ‘A’ status from Schedule ‘B’.
• 2006: Awarded Mini Ratna Category–I status.
• 2009: Implementation of enterprise resource planning and systems applications and products.
• 2011: Signed shipbuilding contract for construction and delivery of four P15 B misile destroyers with the MoD.
• 2014: Inauguration of the Mazdock Modernisation project.
• 2015: Launch of first destroyer class ship ‘Vishakhapatnam’ under P15 B project.
• 2015: Signed contract for construction and delivery of four frigates with the MoD.
• 2016: Inauguration of new submarine section assembly workshop at Alcock yard.
• 2017: Delivery of first Scorpene class submarine ‘INS Kalvari’.
• 2019: Delivery of second Scorpene class submarine ‘INS Khanderi’.
• 2020: Listing of MDL in BSE & NSE in 2020.
• 2021: Delivery of three platforms viz. 3rd & 4th Scorpene class submarine & 1st missile destroyer in 2021.
• 2022: Historical Double Launching of a missile destroyer and a stealth frigate on May 17, 2022. Launching of 6th submarine on April 20, 2022.
  

Awards and Recognition

• 2007: Scope Award for Excellence & Outstanding contribution to the Public Sector Management- Special Institutional Category.
• 2008: Raksha Mantri Award for Excellence for: Best Performing Shipyard, awarded by Raksha Mantri (Ministry of Defence, GoI).
• 2009: Raksha Mantri Award for Excellence for: Best Performing Shipyard, awarded by Raksha Mantri (Ministry of Defence, GoI).
• 2010: Golden Peacock Award for Innovative Product / Service Award, awarded by Institute of Directors (IOD).
• 2010: Accredited with ISO Certification for submarine division.
• 2011: Aerospace and Defence Award 2011 for Excellence in Innovation, awarded by SAP Media Worldwide Limited.
• 2012: IIIE Performance Excellence Award, awarded by Indian Institution of Industrial Engineering.
• 2012: Golden Peacock Awards for Corporate Social Responsibility, awarded by Institute of Directors (IOD).
• 2012: QCFI - Special Awards for Best Organisation for Promoting 5S concept, awarded by Quality Circle Forum of India.
• 2013: Aerospace & Defense Awards 2013 - Excellence in Innovation, awarded by SAP Media Worldwide Limited.
• 2013: Aerospace & Defense Awards 2013 - Most influential company of the Year, awarded by SAP Media Worldwide Limited.
• 2014: IPSE Awards 2014: Award for Defence & Marine PSE of the year, awarded by PSE journal.
• 2014: AIOE Annual Award for Outstanding Achievement in Industrial Relations, awarded by All India Organization of Employers.
• 2015: Awarded two Gold and one Silver Awards at ICQCC- 2015, South Korea (Pending) Rainbow.
• 2016: Awarded two Gold Awards at ICQCC-2016, Bangkok, Thailand.
• 2016: Accredited with ISO 9001:2008 Quality Management Systems (QMS) of Shipbuilding Division for the scope of Design, Development, Construction and Servicing of Warships, Merchant Ships and Floating crafts.
• 2017: Dun & bradstreet PSU awards 2017 for ‘Manufacturing Transportation Equipment’, awarded by Dun & Bradstreet.
• 2018: Accredited with ISO 9001:2015 Quality Management Systems (QMS) of Shipbuilding Division for the scope of Design, Development, Construction and Servicing of Warships, Merchant Ships and Floating Crafts.
• 2018: Accredited with ISO 9001:2015 Quality Management Systems (QMS) of Training Department for the scope of Imparting Training to Trade Apprentices and Employees.
• 2018: National Award for Innovative Training Practices 2017-18 awarded by Indian Society for Training and Development, New Delhi.
• 2018: NIPM National Award for HR Best Practices 2018.
• 2019: Accredited with ISO 14001:2015 and OHSAS 18001:2007 for integrated management system for shipbuilding, submarine and heavy engineering, corporate planning and personnel and finance divisions.
• 2019: Golden Peacock Award for Innovative Product / Service Award, awarded by Institute of Directors.
• 2019: Awarded India CSR Project of the Year award 2019 by the India CSR Group.
• 2019: Awarded certificate of appreciation by the Skill Developmemt and Entrepreneurship Department, Directorate of Vocational Education and Training, Government of Maharashtra
• 2019: Awarded the first position at the 16th National Awards for Excellence in Cost Management 2018 for Manufacturing -Public-Large Sector issued by the Institute of Cost Accountants of India.
• 2020: The company won the 11th PSE Excellence Award in Human Resource Management Category for the year 2019-20. The award was presented virtually during the PSE Conclave & PSE Excellence Award held on 25 Feb '22.
• 2021: The National Awards for Excellence in Corporate Social Responsibility (CSR) under the category “Best Relief Package Announced for COVID-19” was conferred to the company by World HRD Congress, Mumbai.