Cochin Shipyard Expands Design Capabilities with Conoship Equity Stake

India’s shipbuilding company Cochin Shipyard Limited (CSL) is acquiring a 23% stake in Conoship International Holding BV, a ship design and engineering company in the Netherlands.

The Share Purchase Agreement and a Shareholders’ and Cooperation Agreement have been signed by the parties involved, and the transaction amount is €2.30 million, according to sources.

The contract will be finalised in 2 months, and it has been cleared by the Department of Investment and Public Asset Management (DIPAM).

Conoship is known for ship designs and engineering services it offers for a diverse range of vessels, including tankers, ferries, offshore supply vessels, general cargo ships and dredging ships.

It also conducts feasibility studies, offers financing support, and yard selection services across the globe. The company also specialises in developing alternative-fuel systems for methanol and hydrogen along with wind-assisted propulsion.

This deal would enable CSL to boost its capabilities in building decarbonised and energy-efficient vessels to meet international environmental standards.

Additionally, the company has a well-established base in North Europe, which would give the Indian Shipbuilder a direct pipeline to get European orders for green tugboats, offshore vessels, coastal traders and short-sea cargo vessels.

Conoship’s designs can also be adapted for India’s inland waterways and coastal shipping routes under the Sagarmala program and Maritime India Vision 2030.

This deal is significant since it marks CSL’s first equity investment in an international ship design company, transitioning it from a 3rd party design licensing to direct equity-backed ownership.

This transaction has been built on a working relationship with Conoship, as CSL earlier built short-sea cargo ships based on Conoship’s designs for clients in Europe.

Conoship focuses on designing vessels and depends on third-party shipyards to build its vessels. Partnering with CSL would give it access to cost-effective manufacturing infrastructure in India, enabling it to offer clients ‘design and build’ packages rather than only ship design or engineering plans.

It would also gain entry into India’s expanding maritime industry and government initiatives such as coastal shipping and green island waterway vessels, enabling it to secure more clients in Asia.