Private sector ports and logistics company Adani Ports and Special Economic Zone Ltd. (APSEZ), which previously owned 75 per cent of Krishnapatnam Port Ltd. has acquired another 25 per cent stake from Vishwa Samudra Holdings Pvt. Ltd. at cost of Rs. 28,000 crore.
After APSEZ acquiring all 100 per cent of stakes in Krishnapatnam Port, this will be country’s second largest private sector port.
After acquisition, company said that the acquisition is in line with their strategy to increase port footprint in Andhra Pradesh.
Karan Adani, CEO and Whole Time Director, APSEZ said, “The consolidation of our ownership in Krishnapatnam Port reinforces APSEZ’s stride towards 500 MMT by 2025 and achieving our broader strategy of cargo parity between west and east coasts of India. Krishnapatnam Port is on track to handle double the traffic by 2025 and will deliver high growth through a multi-product and cargo enhancement strategy while enhancing return on capital employed.”
Krishnapatnam Port, located in Nellore district, close to border between Andhra and Tamil Nadu borders, on the eastern coast, is an all-weather and deep-water port, with multi-cargo facility of current capacity of 64 MMTPA.
The port has 20 Km waterfront, and adjoining 6,800 acres of land, and a master plan is in place to expand capacity of port to 300 MMTPA and a 50-year concession.
“We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025. We are committed to making Krishnapatnam Port the gateway port for South Andhra Pradesh and Karnataka. With its large industrial land backed with the port we will transform Krishnapatnam into a manufacturing and industrial hub,” Mr. Adani added.
The acquisition is yet to be approved under few laws, including Competition commission of India (CCI), and the transaction is expected to be complete by next 3 months.
APSEZ’s port holdings make up 24 per cent of India’s port capacity, making it India’s largest port developer and operator, operating 12 ports and terminals across India — Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam and Krishnapatnam in Andhra Pradesh, Dighi in Maharashtra and and Kattupalli and Ennore in Chennai.