India’s largest private port and logistics company Adani Ports and Special Economic Zone (ASPEZ) will acquire controlling stakes in Gangavaram Port.
ASPEZ will acquire 58.1 per cent stakes at cost of Rs.3,604, previously held by DVS Raju and family, ASPEZ has also previously acquired 31.5 per cent of stakes from Warburg Pincus on March 3 2021, now owning 89.6 per cent of all stakes in Gangavaram port.
“The acquisition of GPL is a further augmentation of our vision of capitalizing on an expanded logistics network effect that generates greater value as it expands. Every additional node that we are able to add to our network allows us to deliver a greater level of integrated and enhanced solutions to our customers.” Karan Adani, CEO and Whole Time Director of ASPEZ said.
Gangavaram Port is second largest non-major port in state of Andhra Pradesh after Vizag port, with a capacity of 64 MMT (million metric tons), located in the northern part of Andhra Pradesh next to Vizag Port.
Port was also established under a concession from the Government of Andhra Pradesh, concession extends till 2059, port operates at 9 berths, and free-fold land of 18,00 acres with a master plan capacity up to 250 MMT, and sufficient headroom for growth.
Mr. Karan Adani also said, In this context, GPL is a tremendous addition to our portfolio. The associated hinterland we will now be able to tap into is one of the fastest-growing in the eastern region and with the logistic synergies APSEZ brings to the table, GPL has the potential to become a 250 MMT port. This will undoubtedly help accelerate the industrialization of Andhra Pradesh. The Raju family has built a great port and we will continue to expand the world-class asset that has been initiated by them, Business Standard reported.
“Ports play a major role in shaping the future. Through APSEZ’s 89.6 per cent stake in Gangavaram port, the Adani Group will greatly expand its pan-India cargo presence. As India’s largest private sector port developer and operator, we will accelerate India’s and AP’s industrialization,” tweeted Gautam Adani, chairman and founder of the Adani Group said in a tweet.
In period FY20, Gangavaram port held a volume of 34.5 MMT, and revenue of 1,082 crore, and EBITDA of Rs 634 crore, port is also debt free with cash balance of Rs. 500 crore, Business Standard reported.