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Elaborative SWOT Analysis of Mazagon Dock Shipbuilders – A Shipbuilding Company For The Indian Navy

by | Case Studies | 0 comments

In our previous blog, we did a comprehensive study on the SWOT Analysis of India’s largest car manufacturer, Maruti Suzuki. Here we will understand the SWOT Analysis of Mazagon Dock Shipbuilders.

Mazagon Dock Shipbuilders are one of the largest manufacturers of warships and submarines for the Indian Navy. Mazagon Dock Shipbuilders Limited’s main activities are the construction of warships and submarines with facilities situated in Mumbai and Nhava.

Marketing is one of the key factors that made Mazagon Dock Shipbuilders successful and as the world goes online, digital marketing is the future of marketing. If you want to be future leaders – Check out Free Masterclass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah. 

In this case study, we will learn about the SWOT analysis of Mazagon Dock Shipbuilders. But first, let us know about the company and the product better.

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About Mazagon Dock Shipbuilders

SWOT Analysis of Mazagon Dock Shipbuilders - Mazagon Dock Shipbuilders

Mazagon Dock Shipbuilders Limited established in 1934, aptly called “Ship Builder to the Nation,” is a leading Ministry of Defence public sector undertaking shipyard in India. The company’s main interests are the manufacture of warships and submarines, with facilities in Mumbai and Nhava (under development). Mazagon Dock Shipbuilders Limited takes interest in building tankers, cargo bulk carriers, passenger ships and ferries for the Indian Navy and offshore platforms and associated support vessels for offshore oil drilling.

Since 1979, they have been able to build battleships, submarines, and commerce ships up to 40,000 DWT. The company includes a significant number of facilities for outfitting work, each with modern equipment and machines dedicated to hull fabrication and ship construction. 

Mazagon Dock Shipbuilders Limited has competent people to implement CAD/CAM/CIM utilising the most up-to-date ship design software, running from a number of workstations with the most up-to-date computer hardware to give up-to-date design and production assistance commensurate with the yard’s capabilities. The workforce is well-versed in a variety of fields. Regular training programmes keep the personnel up to date on the most cutting-edge practices in their field.

Quick Stats on Mazagon Dock Shipbuilders
Founder Vice Admiral Narayan Prasad
Year Founded 1934
Origin New York
No. of Employees 8790+
Company Type Public
Market Cap Rs 5,021.07 Crore (2022)
Annual Revenue Rs 5,289.53 Crore (2019)
Net Income/ Profit Rs 519.40 Crore (2019)

 

SWOT Analysis of Mazagon Dock Shipbuilders - INS Karanj


Products & Services by Mazagon Dock Shipbuilders 

  • Naval Ships
  • Submarines
  • Tankers
  • Offshore Platforms
  • Patrol Boats
  • Platform Supply Vessels
  • Bulk Carriers
  • Ship Design
  • Ship Building
  • Ship Repair


Competitions of Mazagon Dock Shipbuilders

  • Cochin Shipyard
  • Garden Reach Shipbuilding and Engineer LTD
  • ABG Shipyard
  • Bharati Defence and Infrastructure LTD


Now, we know the brief of the company, what it is, what it does and the relevance of its existence. Let us dive into the SWOT Analysis of Mazagon Dock Shipbuilders.


SWOT Analysis of Mazagon Dock Shipbuilders 

A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like Mazagon Dock Shipbuilders to compare its business and performance to that of its competitors.

It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Mazagon Dock Shipbuilders.

To better understand the SWOT analysis of Mazagon Dock Shipbuilders, refer to the infographics below:

SWOT Analysis of Mazagon Dock Shipbuilders - SWOT Infographics of Mazagon Dock Shipbuilders

Below is an explicit guide to the SWOT analysis of Mazagon Dock Shipbuilders.

Strengths of Mazagon Dock Shipbuilders

Mazagon Dock Shipbuilders, being one of the leading companies in its industry, has several benefits that help it flourish in the marketplace. These strengths not only help it retain market share in existing areas but also help it break into new ones.

  • Leading Manufacturer of Indian Navy: Mazagon Dock Shipbuilding is the leading public sector of defence, in India. They manufacture various submarines and Naval ships for the Indian navy.
  • Public Sector: Mazagon Dock Shipbuilding was taken over by the government in 1960. Therefore Mazagon dock rapidly became the premier war shipbuilding yard. Being taken over by the government helps to grow faster and it helps to increase the capital of the company.
  • Use of Modern Technologies: Mazagon Dock Shipbuilding uses modern technologies to manufacture various warships and submarines. And they also build these modern technologies in their shipyard situated in Mazgaon, Mumbai.
  • Government Support: The government of India holds up to 84% stake in Mazagon Dock Shipbuilding and this helps the limited company in terms of subsidies, financial and advisory support.
  • Various Navel Projects: Mazagon Dock Shipbuilders have been working on various Navel Projects including Nilgiri-class frigate, Godavari-class frigate, Khukri-class corvettes, Delhi-class destroyers, Shivalik-class frigates and many more. These projects have opened new revenue streams for the company. 
  • Awards & Recognition: Recently Mazagon Dock Shipbuilders got the National Awards for Excellence in CSR under the category “Best Relief Package Announced for COVID-19” was conferred by World HRD Congress, Mumbai.


Weaknesses of Mazagon Dock Shipbuilders

Mazagon Dock Shipbuilders’ weakness is an area where he can improve. Strategy is about making important decisions, and weaknesses are areas where a company could improve with the help of a SWOT analysis.

  • Inefficient Use of Shareholder Funds: Shareholder funds is known as the amount of equity in a company that belongs to the shareholders of the company. Proper and efficient use of shareholder funds is required to expand the company and make more profits. While Mazagon Dock Shipbuilding is not making the proper use of these shareholder funds hence they are not earning the profit that they were supposed to get.
  • Inefficient Use of Assets: Mazagon Dock Shipbuilding is not using its assets properly and efficiently, causing less profit gain. This can cause the company various troubles and also loss of shareholders.
  • Weak Product Marketing: As Mazagon dock is a Government company, it is not marketing its products. Due to this, most people don’t know about this company even though they are the leading manufacturer. This can cause severe loss as if people don’t recognise the company, they won’t invest in it. And Mazagon dock will not get the capital amount that it should get.
  • Limited Expansion of Company: As the company is only limited to shipbuilding, its expansion is very difficult which will affect its position in the market. This is the biggest weakness of this company.
  • Less workforce: This company only has a workforce of 9000-10000, which is less than the leading company. Fewer workforce results in lesser production/outcomes. As a leading company in warships and submarines manufacture, they are far behind when it comes to the number of workforces. 


Opportunities for Mazagon Dock Shipbuilders

Opportunities are possible areas for a company to consider to improve results, sales, and, ultimately, profit. Mazagon Dock Shipbuilders includes the following opportunities:

  • Stocks with Low PE: Stocks that have low price earnings are known as undervalued. Mazagon should lower the PE below 10 so that the people will tend to invest more in the stocks of Mazagon Dock Shipbuilding.
  • Technological Advancement: We now know that Mazagon Dock Shipbuilding is bringing modern technology to their manufacturer product by reading strengths. But they should increase the use of technology as much as possible. Technological advancement will give proper momentum to the company.
  • Increase the Speed of Manufacturing: Mazagon Dock Shipbuilding is lacking speed in manufacturing. Due to less workforce, they can’t speed up their manufacturing. They should focus more on this. An increase in the speed of manufacturing increases the productivity rate and an increase in productivity will increase the rate of profit.
  • Privatising: Privatising the company will help the company to remove various restrictions. And the removal of these restrictions will result in an expansion of the company. Today many other companies are doing the same.
  • Using First Mover Advantage: Instead of fighting with competitors, they can position themselves as a pioneer and quality manufacturer. Launching new shipbuilding products before the market is an addition. 


Threats to Mazagon Dock Shipbuilders

Many factors can affect your business outside its immediate environment. Some of these include factors such as a shortage of skilled workers or a supply chain issue. The threats Mazagon Dock Shipbuilders is facing are as follows

  • Competition: In the current scenario, the Government is also working along with the private sector in a contract-based method. This is a threat to the public sector as their number of orders are decreasing. This is also affecting Mazagon Dock Shipbuilding as there are many private sectors manufacturing the same products in less time and less amount. 
  • Many War Policies: There are many war policies introduced that restrict the number of war objects a country can have. Therefore the production of warships and submarines are limited and it can’t be exceeded after some point. This is a huge threat to Mazagon Dock Shipbuilding and other similar companies.
  • Decrease in Waterway Transport: Due to an increase in fuel price and decreasing use of water transport, it will become difficult for the company to cope with this problem.
  • Environmental Activists: Mazagon Dock Shipbuilders associate support vessels for offshore oil drilling and its ships are built & repaired at shipyards on the water. These activities are not favourable for activists dedicated to environmental sustainability and any actions and lawsuits imposed by these groups can affect the market position of Mazagon Dock Shipbuilders.
  • War Factors: Mazagon Dock Shipbuilders manufacturers and repair their products at a shipyard and sudden tensions on the water border can destroy several manufactured ships by Mazagon Dock Shipbuilders and can also affect the lives of workers working at the company.


This ends our elaborative SWOT analysis of Mazagon Dock Shipbuilders. Let us conclude our learning below.

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To Conclude

Mazagon Dock Shipbuilding LTD is the leading manufacturer of warships and submarines for the Indian Navy. They are owned by the government of India. This SWOT analysis of Mazagon Dock Shipbuilders helped us to understand how this company has reached here and become the top leading company in its field. 

Also how they are using modern technology in their manufacturing. Through the current increase in net cash flow, the company is making its way to compete with other foreign companies also. But we also should consider that they are lacking in the workforce and they will face some troubles due to war policies in future. But overall the company is doing their best.

The most important thing we saw here was that there is a need for social media presence and they focus more on digital marketing as digital marketing has become the most important medium of marketing in the current world. There is a need to become well versed in this digital marketing field. If you are insisting to be well versed in this field then, here is IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

We hope this blog on the SWOT analysis of Mazagon Dock Shipbuilders has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Mazagon Dock Shipbuilders, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Mazagon Dock Shipbuilders in the comments section below.

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