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News: Udupi Cochin Shipyard Limited (UCSL), a wholly owned subsidiary of Cochin Shipyard (CSL), has entered into a contract with Wilson ASA, Norway, for Design and Construction of four 6300 TDW Dry Cargo Vessels. Agreement has also been entered into for additional 4 vessels of the same type which will be formally contracted by September 19, 2024. The overall project of 8 vessels is worth about Rs 1,100 crore and is to be executed within September 2028.
Views: Europe remains a key export region for Cochin Shipyard in terms of commercial ship-building segment. Company is already in process of executing ~Rs 3400 crore worth of commercial ship-building contracts from Europe. Order backlog is estimated to be at ~Rs 22000 crore (6x FY24 revenues), giving healthy visibility. Execution has also picked up considerably in major defence contracts, implies strong growth in coming period. Moreover, recent commissioning of ship building and ship repair facilities have significantly augmented the company's capacity and overall capabilities.
Impact: Positive