Adani Ports and Special Economic Zone (APSEZ) announced its plan to acquire a 75 percent stake in Andhra-Pradesh based multi-purpose Krishnapatnam Port Company Limited (KPCL) for an enterprise value of Rs.13,572 crore.
KPCL, which is the second-largest private sector port in India after Mundra, handled 54m tonnes of cargo in the 2019 fiscal year and APSEZ is hopeful that it will increase the annual handling total to 100m tonnes in seven years.
Through timely process improvements and defining practices, Adani was optimistic about APSEZ looking forward to doubling its EBIDTA in around four years.
“This acquisition would accelerate our stride towards FY25 vision of handling 400 million tonnes (mt) cargo. Given the best-in-class infrastructure and the distinct hinterland catered by Krishnapatnam Port, this acquisition will increase our market share to 27 per cent (from current 22 per cent).”Karan Adani, CEO of APSEZ
The acquisition is subject to regulatory approvals, following which the transaction is expected to be completed in about 120 days.
With this acquisition, the company has secured its foothold on the east coast of India.
Just last month, Adani Logistics, a wholly-owned subsidiary of Adani Ports, purchased a major stake for INR 296 crore in Snowman Logistics Ltd, thus making a formal entry into the world of cold chain logistics.