India >> Odisha

Adani Ports expands Eastern Coast presence with INR 3,350 crore acquisition of Gopalpur port

PNT Reporter | Last Updated : 29th Mar, 2024

Synopsis

Adani Ports and Special Economic Zone (APSEZ), India's largest port operator, has acquired a 95% stake in Odisha's Gopalpur Port for INR 3,350 crore, expanding its presence on the eastern coastline. With a capacity of 20 million tonnes per annum (MTPA), Gopalpur Port offers strategic access to key mining hubs, enabling Adani Ports to handle diverse cargo like iron ore, coal, and alumina. APSEZ plans to leverage its expertise to enhance operational efficiency and explore infrastructure upgrades to unlock the port's growth potential. This acquisition strengthens Adani Ports' position and underscores ongoing consolidation in India's port sector, promising greater efficiency and competitiveness.

India's largest port operator Adani Ports and Special Economic Zone (APSEZ) has acquired a 95% stake in Odisha's Gopalpur Port for INR 3,350 crore. This acquisition expands Adani Ports' presence on India's eastern coastline.

The acquisition of Gopalpur Port, a well-established brownfield port with a capacity of 20 million tonnes per annum (MTPA), strengthens Adani Ports' pan-India network. Gopalpur Port is strategically located and offers access to key mining hubs in Odisha and neighbouring states. This will allow Adani Ports to handle a wider variety of cargo, including iron ore, coal, limestone, and alumina, and expand its overall cargo handling capacity.

Adani Ports believes Gopalpur Port has significant growth potential beyond its current 20 MTPA capacity. The company plans to leverage its expertise to improve operational efficiency and explore infrastructure upgrades to unlock the port's full potential. This could involve expanding capacity to handle even greater volumes of cargo.

Gopalpur Port's location offers several advantages. The presence of large steel plants nearby creates significant demand for coking coal and limestone imports, totaling around 11.3 million tonnes of cargo handled in FY24 with a projected revenue of INR 520 crore. Additionally, the potential for handling thermal coal movements provides further upside for the port. Planned new railway lines are expected to further enhance connectivity, making Gopalpur Port a cost-effective option for companies operating in the region, particularly those in the upcoming TATA SEZ facility in the hinterland.

The sale of Gopalpur Port marks another step in the Shapoorji Pallonji Group's strategy to reduce its debt burden, estimated to be around INR 20,000 crore. The group has recently divested other port assets and is looking to capitalize on growth opportunities in its core businesses.

This acquisition highlights the ongoing consolidation trend in the Indian port sector. Domestic players like Adani Ports are strategically acquiring assets to expand their presence and leadership in key markets. This consolidation is expected to further improve efficiency and competitiveness in the Indian port industry.

The acquisition of Gopalpur Port for INR 3,350 crore, which includes a contingent consideration of INR 270 crore payable after 5.5 years, is a significant win for Adani Ports. It strengthens the company's position as India's leading port operator and expands its reach on the eastern coast. With its focus on growth and efficiency improvements, Adani Ports is well-positioned to unlock the full potential of Gopalpur Port and contribute to the development of eastern India.

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India >> Odisha

Adani Ports expands Eastern Coast presence with INR 3,350 crore acquisition of Gopalpur port

Synopsis

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