Adani Ports Now Complete Owner Of Krishnapatnam Port In Andhra Pradesh, With Latest 25 Per Cent Stake Buyout
After APSEZ acquired 100 per cent stake in Krishnapatnam Port, this will be the country’s second largest private sector port.
The 25 per cent remainder stake was acquired from Vishwa Samudra Holdings Pvt. Ltd. at a cost of Rs. 28,000 crore.
Private sector ports and logistics company Adani Ports and Special Economic Zone Ltd. (APSEZ), which previously owned 75 per cent of Krishnapatnam Port Ltd. has acquired another 25 per cent stake from Vishwa Samudra Holdings Pvt. Ltd. at a cost of Rs. 28,000 crore.
After APSEZ acquired 100 per cent stakes in Krishnapatnam Port, this will be the country’s second largest private sector port.
The company said that the acquisition is in line with their strategy to increase port footprint in Andhra Pradesh.
Karan Adani, CEO and Whole Time Director, APSEZ said, “The consolidation of our ownership in Krishnapatnam Port reinforces APSEZ’s stride towards 500 MMT by 2025 and achieving our broader strategy of cargo parity between west and east coasts of India. Krishnapatnam Port is on track to handle double the traffic by 2025 and will deliver high growth through a multi-product and cargo enhancement strategy while enhancing return on capital employed.”
Krishnapatnam Port, located in Nellore district, close to the border between Andhra and Tamil Nadu on the eastern coast, is an all-weather and deep-water port, with multi-cargo facility with a current capacity of 64 MMTPA.
The port has a 20 Km waterfront, adjoining 6,800 acres of land, and a master plan is in place to expand the capacity to 300 MMTPA with a 50-year concession.
“We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025. We are committed to making Krishnapatnam Port the gateway port for South Andhra Pradesh and Karnataka. With its large industrial land backed with the port, we will transform Krishnapatnam into a manufacturing and industrial hub,” Adani added.
The acquisition is yet to be approved under a few laws, including the Competition Commission of India (CCI), and the transaction is expected to be complete in the next three months.
APSEZ’s port holdings make up 24 per cent of India’s port capacity, making it India’s largest port developer and operator, operating 12 ports and terminals across India — Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam and Krishnapatnam in Andhra Pradesh, Dighi in Maharashtra and and Kattupalli and Ennore in Chennai.
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