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Adani Ports and Special Economic Zone Ltd (APSEZ), India's largest private port operator, is currently evaluating global acquisition opportunities, particularly across key trade routes in South East Asia, West Asia, and Africa. The company is reportedly in preliminary discussions regarding potential partnerships, with a focus on collaborating with strong local entities. Domestically, APSEZ has announced an ambitious INR 80,000 crore capital expenditure plan to be executed over the next three years, aimed at expanding its port and logistics operations. The company's robust financials and AAA+ credit rating further support these plans.
Adani Ports and Special Economic Zone Ltd (APSEZ), recognised as India's largest private port operator, is currently assessing opportunities for international acquisitions. Its focus remains on key trade corridors spanning South East Asia, West Asia, and Africa. It has been reported that the company is engaged in early-stage discussions for potential collaborations, emphasising partnerships with established and influential local players. Advertisement
On the domestic front, APSEZ has detailed an ambitious capital expenditure plan of INR 80,000 crore over the next three years, covering FY25 to FY28. This investment is set to nearly double the INR 42,000 crore the company allocated during the previous decade. The funding for this capital outlay will primarily be sourced from internal accruals, although the company has indicated that some debt financing may be considered should the need arise.
An APSEZ official conveyed that they were open to expanding their international presence, predominantly through strategic partnerships. They noted that various opportunities were currently under exploration, but also expressed caution due to the prevailing geopolitical environment. The official further remarked that currency fluctuations would play a critical role in the decision-making process for overseas acquisitions.
At present, APSEZ has established an international footprint, with operational assets in Haifa (Israel), Dar-es-Salaam (Tanzania), as well as berths in Colombo (Sri Lanka) that are expected to be commissioned in the near future.
As part of its domestic expansion strategy, APSEZ plans to allocate INR 50,000 crore towards the development and enhancement of its port infrastructure, INR 25,000 crore towards its logistics division, and INR 5,000 crore for maintenance activities. Notable projects under this plan include the development of a container transshipment terminal at Vizhinjam Port in Kerala, along with capacity augmentation efforts at Krishnapatnam and Gangavaram ports.
The company has set a target to increase its cargo handling capacity from the current 633 million tonnes to 1,000 million tonnes by 2030, with an interim target of achieving 800-850 million tonnes in cargo volumes. Significant brownfield expansions are underway at several of its existing ports, including Mundra, Hazira, Dhamra, and Krishnapatnam.
From a financial perspective, APSEZ maintains a strong position, boasting an annual EBITDA run rate of INR 18,000 crore. While internal accruals are expected to remain the primary source of funding, the company has indicated it may raise around INR 20,000 crore through debt if necessary, capitalising on its AAA+ credit rating.
APSEZ is also positioning itself as a comprehensive logistics solutions provider by integrating port operations with transportation and supply chain services. With its comprehensive logistics strategy and stable financial footing, the company seems set to strengthen its leadership in the global port and logistics sector.
Inputs from the Business Line
5th Jun, 2025
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