Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, has entered into an agreement to acquire Gopalpur Port Limited (GPL) in Odisha for Rs 3,080 crores.
The company is purchasing the 56% stake of the SP Group and 39% stake of Orissa Stevedores Limited (OSL) in GPL. The transaction is subject to statutory approvals and fulfilment of other conditions.
This acquisition will drive synergy with the Adani Group’s existing ports and strengthen APSEZ’s presence on the east coast. Gopalpur is a road-rail connected port with capacity of 20 MMTPA and significant
potential for expansion.
The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.
Strategically situated on the east coast, it has significant potential from mineral rich
hinterland. As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo,
including iron ore, coal, limestone, ilmenite, and alumina. The port plays an important role
in supporting the growth of mineral-based industries in its hinterland, like iron and steel,
alumina and others.
GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.
The port is well connected with its hinterland through the national Highway NH16 and a
dedicated railway line connects the port with the Chennai-Howrah main line.
In addition to the enterprise value there is a contingent consideration of Rs 270 crores
estimated to be payable after 5.5 years, subject to fulfilment of certain conditions as
agreed with the sellers.
Karan Adani, Managing Director of APSEZ, said, “The acquisition of Gopalpur Port will
allow us to deliver more integrated and enhanced solutions to our customers. Its location
will allow us unprecedented access to the mining hubs of Odisha and neighbouring states
and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s
pan-India port network, significantly enhance overall cargo volume, and strengthen
APSEZ’s integrated logistics approach.”
In FY’24, GPL is estimated to handle about 11.3 MMT cargo (YoY growth – 52%) and earn a
revenue of INR 520 crores (YoY growth – 39%) and achieve EBITDA (earnings before interest, taxes, depreciation, and amortization) of INR 232 crores (YoY growth 65%).
Gopalpur Port is all set for strong growth and margin expansion in FY’25 with opportunities already identified for achieving higher operational efficiencies and infrastructure debottlenecking, implying further value accretion for APSEZ shareholders, Mr Adani said.
APSEZ, a part of the globally diversified Adani Group, has evolved from a port company to an Integrated Transport Utility providing an end-to-end solution from its port gate to customer gate. It is the largest port developer and operator in India with seven strategically located ports and terminals on the west coast (Mundra, Tuna, Dahej, and Hazira in Gujarat, Mormugao in Goa, Dighi in Maharashtra and Vizhinjam in Kerala) and seven ports and terminals on the east coast of India (Haldia in West Bengal, Dhamra in Odisha, Gangavaram and Krishnapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu and Karaikal in Puducherry), representing 27% of the country’s total port volumes, thus providing capabilities to handle vast
amounts of cargo from both coastal areas and the hinterland.
The company is also developing a trans-shipment port at Colombo, Sri Lanka, and operates the Haifa Port in Israel. Its vision is to be the largest ports and logistics platform in the world in the next decade.
With a vision to turn carbon neutral by 2025, APSEZ was the first Indian port and third in the world to sign up for the Science-Based Targets Initiative (SBTi) committing to emission reduction targets to control global
warming at 1.5°C above pre-industrial levels.
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