Visakhapatnam: Adani Ports and Special Economic Zone (APSEZ) Ltd is acquiring the 58.1 percent stake in Gangavaram Port Limited (GPL) owned by DVS Raju and family.
The acquisition is valued at Rs. 3,604 crore and subject to regulatory approvals.
APSEZ had announced the acquisition of Warburg Pincus's 31.5% stake in GPL on March 3, 2021, and together with this acquisition, APSEZ would have 89.6% stake in GPL.
GPL is located in the northern part (Vizag city) of Andhra Pradesh next to Visakhapatnam Port Trust. GPL is the second-largest non-major port in Andhra Pradesh with a 64 MMT capacity established under a concession from the Government of Andhra Pradesh (GoAP) that extends till 2059.
It is all-weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 200,000 DWT. Currently, GPL operates 9 berths and has free-hold land of 1,800 acres. With a master plan capacity for 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth.
GPL handles a diverse mix of dry and bulk commodities including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel. GPL is the gateway port for a hinterland spread over 8 states across eastern, southern, and central India.
In 2019-2020, GPL had a cargo volume of 34.5 MMT, the revenue of Rs. 1,082 crore, EBITDA of Rs. 634 crore (59% margin) and PAT of Rs. 516 crore GPL is debt-free with a cash balance of over Rs. 500 crore.
"The acquisition of GPL is a further augmentation of our vision of capitalizing on an expanded logistics network effect that generates greater value as it expands. Every additional node that we are able to add to our network allows us to deliver a greater level of integrated and enhanced solutions to our customers. In this context, GPL is a tremendous addition to our portfolio," said Karan Adani, CEO and Whole Time Director of APSEZ.
Karan noted that GPL has the potential to become a 250 MMT port. "This will undoubtedly help accelerate the industrialization of AP. The Raju family has built a great port and we will continue to expand the world-class asset that has been initiated by them," he said
APSEZ, a part of the globally diversified Adani Group has evolved from a port company to Ports and Logistics Platform for India. It is the largest port developer and operator in India with 12 strategically located ports and terminals -- 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 -- represent 24 per cent of the country's total port capacity.