The Business Bytes
TBB BUREAU
AHMEDABAD, MAR 26, 2024
Adani Ports and Special Economic Zone Ltd (APSEZ) on Tuesday announced its acquisition of a majority stake in Gopalpur Port Limited (GPL), marking a significant move in the realm of port operations. APSEZ secured a 56% stake from the SP Group and 39% from Orissa Stevedores Limited (OSL) in GPL for a sum of Rs 3,080 crore. Located along the eastern coast of India, Gopalpur Port boasts a handling capacity of 20 million metric tonnes per annum (MMTPA).
The journey of GPL began in 2006 when the Odisha government granted it a 30-year concession, with provisions for two 10-year extensions. Alongside the enterprise value, APSEZ agreed to a contingent consideration of Rs 270 crore, payable after 5.5 years, subject to predefined conditions.
Karan Adani, Managing Director of APSEZ, emphasized the strategic importance of this acquisition, highlighting the enhanced solutions it brings to customers and the expanded access to mining hubs in Odisha and neighboring states. He underlined GPL’s integration into Adani Group’s nationwide port network, anticipating a substantial increase in cargo volume and reinforcing APSEZ’s holistic logistics approach.
“The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighboring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach,” said Adani.
Notably, Gopalpur Port plays a pivotal role in facilitating the growth of mineral-based industries such as iron and steel, alumina, among others, in its hinterland. The concessionaire enjoys the flexibility to tailor and expand port operations according to market demand.
With over 500 acres of leased land for development and the option for additional land lease to accommodate future expansions, GPL is well-equipped for growth. It benefits from robust connectivity with its hinterland through National Highway NH16 and a dedicated railway line linking it to the Chennai-Howrah main line.
Financial projections indicate a promising future for GPL, with an estimated cargo handling of 11.3 million metric tonnes (MMT) and revenues of Rs 520 crore in FY24, reflecting significant year-on-year growth. The EBITDA is projected to reach Rs 232 crore, indicating a remarkable 65% year-on-year growth.
APSEZ, a key entity within the globally diversified Adani Group, stands as India’s largest port developer and operator. With seven strategically positioned ports and terminals on both the west and east coasts, APSEZ continues to play a pivotal role in the nation’s maritime infrastructure and trade ecosystem.
