Adani Logistics acquire ICD Tumb for INR 835 crore

Adani Logistics Ltd, a fully owned unit of Adani Ports and Special Economic zone ltd (APSEZ), has successfully acquired the inland container depot (ICD) at Tumb in Vapi from Navkar Corporation ltd. for an enterprise value of INR 835 crore as India’s biggest private port operator blosters its door-to-door capabilities en route to becoming a transport utility.

The arrangement contains securing the functional ICD with the ability to deal with 0.5 million TEUs. The associated 129 acres of land will give an extra extension way to increase capacity and cargo in the future as extra industrial corridors and logistic parks get added along these DFC courses.

The Tumb ICD also includes a private cargo terminal with four rails taking care of lines associated with Western DFC and has custom notified land and bonded warehouse facilities.

“Tumb is one of the largest ICDs in the country. Given its strategic positioning in the middle of one of the busiest industrial zones and access to the dedicated freight corridor allows it to meaningfully serve the vast hinterland with access to two of the busiest ports on both sides, Hazira & Nhava Sheva,”

Karan Adani, CEO and Whole Time Director of APSEZ.

“In addition to cargo moving by rail being 5X greener than that moving by road, another prime benefit of the access to the DFC is the savings in average transit times that are expected to be 10 hours by rail versus 24 hours by road. This acquisition fits well with our transformation strategy towards becoming a transport utility as well as moving us closer to our objective of providing economical door-to-door services to our customers. We are confident to grow the volumes at the ICD at high double digits as we build out a sustainable world-class multi-modal supply chain solution for the nation,” he added

The acquisition based on the land value and replacement cost of existing assets is priced at an enterprise value of Rs 835 crore, suggesting that an EV/EBITDA varies by 7.8x (based on FY23(E) EBITDA). The deal is subject to customary regulatory and lender approvals and is expected to close in Q2 FY23.

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