KMEW wins Rs 303.17 crore three-year port dredging order

Knowledge Marine & Engineering Works Limited has received a Rs 303.17 crore, tax-inclusive maintenance dredging order from New Mangalore Port Authority for FY 2026-27 to FY 2028-29. KMEW calls it its largest-ever dredging order, covering 15.9 million cubic metres over three years, with first-year operations scheduled from November 15, 2026.

What contract has KMEW received from New Mangalore Port Authority?

KMEW has received a three-year maintenance dredging contract at New Mangalore Port worth Rs 303.17 crore, including taxes. The October 30, 2026 disclosure identifies New Mangalore Port Authority as the domestic awarding entity and specifies the contract period as FY 2026-27, FY 2027-28 and FY 2028-29.

The regulatory filing describes the document received as a work order, while the accompanying release says KMEW received a Letter of Acceptance. KMEW said it was the lowest bidder, with its bid approximately 10.16% below that submitted by the competition, although it did not identify the competing bidder or disclose either bid amount.

KMEW also said its promoters, promoter group and group companies have no interest in New Mangalore Port Authority. The Rs 303.17 crore contract is not a related-party transaction, according to the disclosure made under the Securities and Exchange Board of India listing requirements.

How much dredging and annual value does the contract involve?

The contract covers 15.9 million cubic metres of post-monsoon maintenance dredging over three years, equivalent to an average of 5.3 million cubic metres a year. KMEW disclosed an approximate annual base contract value of Rs 101.07 crore including taxes, against the Rs 303.17 crore aggregate consideration.

The annual figures show the disclosed operating cadence rather than separately guaranteed annual revenue or volume allocations. KMEW used “approximately” for the Rs 101.07 crore annual base value, whereas the Rs 303.17 crore three-year value was stated as the contract consideration including taxes.

Beyond the main 15.9 million cubic metres, the contract includes 180,000 cubic metres of berth-face dredging and 18,000 cubic metres in pump-house areas over the three-year period. The release does not provide separate prices for these additional quantities.

When must KMEW begin and complete the dredging work?

KMEW is scheduled to commence first-year operations on November 15, 2026, with annual dredging work to be completed within 150 days each year. The assignment spans FY 2026-27, FY 2027-28 and FY 2028-29, but the disclosure does not set start dates for the second and third years.

The work is described as post-monsoon maintenance dredging, creating a recurring three-year execution requirement rather than a one-time programme. The company disclosed the 150-day annual completion window but gave no interim construction or dredging milestones within those periods.

Management said the 15.9 million-cubic-metre programme marks a progression from comparatively smaller-volume dredging assignments to sustained, large-volume maintenance dredging. It did not provide historic contract volumes or values, so the stated comparison cannot be quantified from the filing.

Which New Mangalore Port areas will KMEW dredge?

KMEW will carry out maintenance dredging in the outer approach channel, lagoon, dock areas, turning circle, designated berth faces and pump-house areas. The contract requires a suitable Trailing Suction Hopper Dredger, or TSHD, together with specialised equipment for berth-face and pump-house dredging.

The outer approach channel extends 7.5 kilometres and is specified for depths of up to 15.40 metres below Chart Datum, or CD. The lagoon, oil dock arm and turning circle are to be dredged up to 15.10 metres below CD in the specified areas, while the KIO Berth Extension Lagoon is specified at up to 14.00 metres below CD.

Designated berth faces have depths ranging from 8.00 metres to 15.10 metres below CD. The old dock arm and eastern dock are to be dredged to depths specified by the Engineer or Marine Department, so the company has not disclosed a fixed numerical depth for those locations.

Pump Houses 1 and 2 are specified at 6.00 metres below CD, while Pump House 3 is specified at 10.00 metres below CD. The 7.5-kilometre channel requirement therefore sits alongside berth and pump-house work with location-specific depths.

What does this order mean for KMEW's stated strategy?

KMEW says the Rs 303.17 crore order is its largest dredging order and supports its progression toward higher-volume dredging work, sustained asset utilisation and larger-scale port infrastructure projects. These are the company’s stated strategic aims, not financial forecasts or contractual performance outcomes.

Chief Executive Officer Sujay Kewalramani said the contract is the first time KMEW has been entrusted with maintenance dredging of complete port premises, rather than a section of a port area. He described the award as an inflection point for KMEW to own and operate a mid-size TSHD, but the filing gives no vessel acquisition cost, financing plan or delivery date.

KMEW said the three-year assignment adds maintenance dredging to its order book and provides multi-year revenue visibility through FY 2028-29. The stated visibility is tied to the Rs 303.17 crore contract and its approximate Rs 101.07 crore annual base value, not to a separate revenue outlook.

The company’s disclosed services also include marine-craft ownership and operation, ship repair and refit, hydrographic surveys and magnetometer surveys. However, the New Mangalore award is specifically a maintenance dredging contract, with 15.9 million cubic metres of principal work rather than a contract for KMEW’s repair, refit or survey services.

Conclusion

The New Mangalore Port contract gives KMEW a Rs 303.17 crore, three-year maintenance dredging assignment covering 15.9 million cubic metres of principal volume, plus 180,000 cubic metres of berth-face work and 18,000 cubic metres at pump-house areas. Management contrasts the complete-port responsibility with earlier partial-port assignments, though it disclosed no historical volumes or values for those projects.

The next disclosed execution milestone is the planned November 15, 2026 first-year start, followed by a 150-day annual completion requirement through FY 2028-29. Management’s plan to own and operate a mid-size TSHD remains unresolved in the filing because KMEW has not provided an acquisition timeline, purchase cost or financing details.