Underwater image processing is very challenging due to its environmental conditions and poor sunlight. Images captured from the ocean using autonomous vehicles are often non-uniformly illuminated and contain noise due to the underlying environment. Object recognition is a challenging task under water due to the variation in the environment, target shape and orientation. Traditional algorithms based on spatial information may not lead to accurate segmentation as the intensity variation is often less in underwater images. Texture information representing the characteristics of the object is needed. Statistical features like autocorrelation, sum average, sum variance and sum entropy were extracted. These were fed as input to learning algorithms and training was done to effectively classify the object of interest and background. Chain coding was further applied for object recognition. The proposed methodology achieved a maximum classification accuracy of 96%.