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Adani Ports: Adani buys 25% more in Krishnapatnam port for Rs 2.8K


HYDERABAD: Gautam Adani owned conglomerate Adani Ports and Special Economic Zones (APSEZ), which had last year acquired a 75 per cent stake in Krishnapatnam Port on India’s east coast in Southern Andhra Pradesh, has acquired an additional 25 per cent, making it a fully owned port.

APSEZ said in a statement on Monday that it has acquired the 25 per cent stake for Rs 2,800 crore in India’s second-largest private port from Vishwa Samudra Holdings.

This 100 per cent acquisition of Krishnapatnam Port implies a 10.3X multiple on FY21 EBITDA (earnings before interest, taxation, depreciation and amortisation) and further enhances shareholder value.

APSEZ, India’s largest private ports and logistics company and flagship transportation arm of Adani Group, said together with the 75 per cent ownership in Krishnapatnam port acquired in October last year, the acquisition implies an enterprise value of Rs 13,675 crore.

“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,” said Karan Adani, APSEZ chief executive and whole-time director.

“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,” said Adani. “We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025,” he said.

Further, Karan Adani said the group was committed to making Krishnapatnam Port the gateway port for South Andhra Pradesh and Karnataka, apart from transforming Krishnapatnam into a manufacturing and industrial hub backed by its large industrial land.

Located on India’s east coast in the Nellore district of Andhra Pradesh, Krishnapatnam Port is close to the border between Andhra Pradesh and Tamil Nadu. It is an all-weather, deep water port and has a multi-cargo facility with a current capacity of 64 million tons a year. The port, which has a waterfront of 20 kilometres and 6,800 acres of land, has a master plan capacity of 300 million tons a year and a 50-year concession.

Since the acquisition by it last year, Krishnapatnam Port has focussed on business process re-engineering that has resulted in EBITDA margins improving from 57 per cent in FY20 to 72 per cent in FY21, claims Adani Group. The port is expected to report volumes of 38 million tons, revenues of Rs 1,840 crore and EBITDA of Rs 1,325 crore in FY21, said the release.

The acquisition of Krishnapatnam Port makes Adani Ports, India’s largest port developer and operator, take its portfolio of strategically located ports and terminals to 12, representing 24 per cent of the country’s total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland.

“Our vision is to be the largest ports and logistics platform in the world in the next decade,” said the company.

The current portfolio of Adani Ports includes Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam and Krishnapatnam in Andhra Pradesh, Dighi in Maharashtra and Kattupalli and Ennore in Chennai. Further, Adani Ports is also developing a transhipment port at Vizhinjam in Kerala.


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