APSEZ completes acquisition of 75% stake in KPCL, India’s second-largest pvt sector port


Adani Ports and Special Economic Zone Limited (APSEZ) on Monday informed about the completion of the acquisition of the Krishnapatnam Port Company Limited (KPCL) for an enterprise value of INR 12,000 crores.

With this acquisition, APSEZ, India’s largest port developer, operator and the logistics arm of the Adani Group, will have a controlling stake of 75 per cent in KPCL from the CVR Group and other investors.

According to the release, the multi-cargo facility port situated in southern Andhra Pradesh is expected to generate Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of approximately Rs 1,200 crores in FY-21, “resulting in an acquisition EV/ EBITDA multiple of 10x.”

“This acquisition will accelerate APSEZ’s stride towards 500 MMT by 2025 and is another step in implementing APSEZ’s stated strategy of cargo parity between west and east coasts of India,” read the release.

“I am happy that KPCL the second largest private port in India has now become part of APSEZ portfolio. This transformational acquisition enables us to roll out world class customer service to an increased customer base and provide pan India solution to them. Our experience of turning around acquisitions like Dhamra and Kattupalli ports will enable us in harnessing the potential of KPCL. We will target to enhance throughput at KPCL to 100 MMT by FY25 and double its EBIDTA by FY23.”

~ Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ

Further adding he said, “With a vast waterfront and land availability of over 6,700 acres, KPCL is capable of replicating Mundra and would-be future-ready to handle 500 MMT. We will replicate our operations and maintenance philosophy at KPCL, continue to focus on environment, reduce emission levels and have zero tolerance for fatalities and thus improve returns to stakeholders.”

APSEZ has 11 ports and terminals-Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai, representing 24 per cent of the country’s total port capacity.

The company handles vast amounts of cargo from both coastal areas and the vast hinterland. further, it is also developing a transhipment port at Vizhinjam, Kerala and a container Terminal at Myanmar.

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