Cochin Shipyard locked in a 5% upper circuit after the company’s arm secured significant orders from Ocean Sparkle

Cochin Shipyard’s (CSL) wholly owned subsidiary -- Udupi Cochin Shipyard (UCSL) has bagged a Significant order from Ocean Sparkle, an Adani Group Company, for the construction of eight ASD (Azimuthing Stern Drive) Tugs of 70 T Bollard Pull Power. This is in addition to the 3 nos of the 70 T Bollard Pull Tugs already under construction at Udupi-CSL for Ocean Sparkle, totalling 11 Tug orders on Udupi-CSL.

The 70 Tonne Bollard Pull Tugs have a Length of 33 m, Beam of 12.2 m and Draft of 4.2 m. The vessels will be propelled by 2 main Engines of 1838 kW and 2.7m Propellers from Niigata IHI Power Systems Co. and deck Equipment from W-Rig Limited. These tugs will be built according to Robert Allan, the world’s leading design house for harbour tugs.

The tugs are built to the Approved Standard Tug Design and Specifications (ASTDS) promulgated by the Government of India to promote Atma Nirbhar Bharath initiatives. Udupi-CSL has been piloting the initial projects under this scheme. Udupi-CSL has already delivered 2 x 62 T Bollard Pull Tugs for Ocean Sparkle in 2023 and 2 x 70 T Bollard Pull Tugs for Polestar Maritime in 2024.

Earlier this month, the company signed a contract with the Ministry of Defence (MoD), Government of India, for Short Refit and Dry Docking of a Large Indian Naval Vessel. The estimated contract value is above ₹1,000 crore and the estimated duration for the project is around 5 months.

Shares of Cochin Shipyard have delivered impressive returns of 125% returns in 2024 despite correcting nearly 50% from the peak levels.

Cochin Shipyard Limited (CSL) is a Miniratna company and one of the leading shipyards in India, located in the southern state of Kerala. The company was founded in 1972 and is owned by the Government of India. The Company is primarily engaged in shipbuilding and ship repair, catering to both the domestic and international markets.