Adani Ports and Special Economic Zone Ltd (APSEZ), one of country’s largest private port operators, on January 3 announced that it agreed to acquire a 75 percent stake in Krishnapatnam Port Co Ltd (KPCL) on the east coast for an enterprise value of Rs 13,572 crore ($1.89 billion).
Adani Ports, controlled by billionaire Gautam Adani, will buy the stake from the existing shareholders of Krishnapatnam Port with cash and internal resources. It operates 12 ports and terminals in India and handles more than 350 million metric tons of cargo a year
Adani Ports get closer to its target of having 400 million metric tons of capacity and reviving revenue growth by 2025 in this deal by help of Krishnapatnam Port.
“Adani Ports will target to enhance cargo volume at Krishnapatnam Port to 100 million metric tonnes in around seven years and will double its EBIDTA in around four years through process improvements and industry best practices, the proposed acquisition is the largest by Adani Ports till date.” said Karan Adani, chief executive officer of Adani Ports.
Nellore district of Andhra Pradesh, north of Chennai-based deepwater Krishnapatnam Port is second-largest private sector port in India and handled 54 MMT of cargo in 2019. The port was developed in 2008 by CVR Group and It can load 1,200-feet long Panamax-size ships.