Adani Ports & SEZ acquires Puducherry’s Karaikal Port for Rs 1,485 crores

admin

Adani Ports & SEZ acquires Puducherry's Karaikal Port for Rs 1,485 crores


Image Source : INDIA TV Puducherry’s Karaikal Port

Adani Ports and Special Economic Zone Ltd (APSEZ), the largest transport utility in India, has completed the acquisition of Karaikal Port Private Limited (KPPL) pursuant to NCLT approval. 
Earlier, APSEZ was declared as the successful resolution applicant under the Corporate Insolvency Resolution Process (CIRP) of KPPL. Karaikal Port is an all-weather deep-water port on India’s eastern coast that was developed on the Build, Operate and Transfer format under the Public-Private Partnership by the Government of Puducherry.
The Karaikal Port was commissioned in 2009, and was developed in the Karaikal District of the Union Territory of Puducherry, around 300 KMS south of Chennai. It is the only major port between Chennai & Tuticorin, and its strategic location allows the port easy access to the industrial-rich hinterland of Central Tamil Nadu.
The port gets a 14-meter water draft and has a land area of over 600 acres. Its existing infrastructure includes 5 operational berths, 3 railway sidings, a mechanized bulk cargo handling system including mechanized wagon-loading and truck-loading systems, 2 mobile harbour cranes and a large cargo storage space that includes open yards, 10 covered warehouses and 4 liquid storage tanks. With a built-in cargo handling capacity of 21.5 MMT, the port primarily handles, Cement, Fertilizer, Limestone, Steel & Liquids. The upcoming CPCL’s 9 MMTPA new refinery at Nagapattinam in Tamil Nadu presents an opportunity for Karaikal Port to handle an additional large volume of liquid cargo. 
Commenting on the occasion, Mr Karan Adani, CEO and Whole-time Director, APSEZ said, “The acquisition of Karaikal Port is another milestone in consolidating our position as India’s largest transport utility.
With the acquisition of Karaikal port APSEZ now operates 14 ports in India. APSEZ will spend a further INR 850 crores over time to upgrade infrastructure to reduce the logistics cost for the customers. We are envisaging to double the capacity of the port in the next 5 years and also add a container terminal to make it a multipurpose port.” In FY 2023, Karaikal Port handled ~10 MMT of cargo and acquisition consideration of INR 1,485 crores implies an EV/EBITDA multiple of ~8x on the FY23 EBITDA number.
Adani Ports & Special Economic Zone
Adani Ports and Special Economic Zone Ltd (APSEZ), a part of the globally diversified Adani Group has evolved from a port company to an Integrated Transport Utility providing end-to-end solutions from its port gate to customer gate.
It is the largest port developer and operator in India with 6 strategically located ports and terminals on the west coast (Mundra, Dahej, Tuna and Hazira in Gujarat, Mormugao in Goa and Dighi in Maharashtra) and 6 ports and terminals on the East coast of India (Dhamra in Odisha, Gangavaram, Visakhapatnam and Krishnapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai) representing 24% of the country’s total port capacity, thus providing capabilities to handle vast amounts of cargo from both coastal areas and the hinterland.
The company is also developing two transhipment ports at Vizhinjam, Kerala and Colombo, Sri Lanka. 
Also Read: Adani Group investment worth $442 million approved by Sri Lanka
Latest Business News



Source link