Cochin Shipyard Soars Over 4% as Subsidiary Secures Rs. 1,100 Crore Order.

The stock price of Cochin Shipyard surged over 4% following the announcement that its subsidiary, Udupi Cochin Shipyard Limited (UCSL), has secured an order worth Rs 1,100 crore. UCSL is a wholly-owned subsidiary of Cochin Shipyard.

In an exchange filing, Cochin Shipyard stated, "We would like to inform that Udupi Cochin Shipyard Limited (UCSL), a wholly owned subsidiary of CSL, has entered into a contract with Wilson ASA, Norway, for the design and construction of four 6300 TDW dry cargo vessels. An agreement has also been entered into for an additional four vessels of the same type, which will be formally contracted by September 19, 2024. The overall project of eight vessels is worth about Rs 1,100 crore and is to be executed by September 2028."

Under the contract terms, UCSL will handle the design and construction of the initial four 6300 TDW dry cargo vessels. Additionally, a preliminary agreement for four more vessels of the same type is expected to be finalized by September 2024. This follows a previous contract awarded in June last year for the design and construction of six 3800 TDW dry cargo vessels, which are currently in advanced stages of construction at the Udupi yard in Karnataka.

Each of the new vessels will measure 100 meters in length with a deadweight of 6300 metric tonnes at a design draft of 6.5 meters. They will be designed by Conoship International of the Netherlands and built as environmentally friendly diesel-electric vessels for transporting general cargo in European coastal waters.

Wilson ASA, based in Bergen, Norway, is Europe's leading short-sea fleet operator, transporting approximately 15 million tonnes of dry cargo across the continent. Their fleet comprises about 130 vessels ranging from 1500 to 8500 DWT.

Since its acquisition by Cochin Shipyard Limited, UCSL has successfully delivered two 62T Bollard Pull Tugs to Ocean Sparkle Limited and one 70T Bollard Pull Tug to Polestar Maritime Limited. These tugs meet the Approved Standard Tug Design & Specifications (ASTDS) mandated by the Indian government under the AatmaNirbharBharat initiative.

BS