Adani ports and Special Economic Zone (APSEZ) has recently acquired controlling interest in Gangavaram Port Ltd (GPL) from DVS Raju and family for Rs 3,604 crore.
After APSEZ’s latest acquisition receives regulatory approvals, it will hold 89.6% stake in GPL which is located in the northern part of Andhra Pradesh next to Vizag Port.
“Adani Ports and Special Economic Zone (APSEZ), India’s largest private ports and logistics company and the flagship transportation arm of the diversified Adani Group, is acquiring the 58.1% stake held by DVS Raju and family in Gangavaram Port Limited (GPL),” the company said in a statement.
Earlier, APSEZ had announced the acquisition of Warburg Pincus’ 31.5% stake in GPL on March 3, 2021, combined together the acquisition will lead APSEZ to hold an 89.6% stake in GPL.
“Ports play a major role in shaping the future. Through APSEZ’s 89.6% 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 industrialisation.”~ Adani Group Chairman Gautam Adani said in a tweet.
It is the second largest non-major, all-weather, deep water, multipurpose port in Andhra Pradesh with a 64 MT capacity established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059.
The port is capable of handling fully laden super cape size vessels of up to 2,00,000 DWT, the statement said.
Currently, GPL operates 9 berths and has free hold land of 1,800 acres. With a master plan capacity for 250 MTPA with 31 berths, GPL has sufficient headroom to support future growth.
The port handles a diverse mix of dry and bulk commodities including coal, iron ore, fertilizer, limestone, bauxite, sugar, alumina and steel.
GPL is the gateway port for a hinterland spread over 8 states across eastern, southern and central India, the statement said adding it will benefit from APSEZ”s pan-India footprint.
“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.”~ Karan Adani, CEO and Whole Time Director of APSEZ
He added that “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 a potential to become a 250 MT port. This will undoubtedly help accelerate the industrialisation of AP.