Adani Ports and Special Economic Zone (APSEZ) on Monday said it has acquired a 25 percent stake of Vishwa Samudra Holdings in Krishnapatnam Port for Rs 2,800 crore. This will result in APSEZ increasing its stake from 75 percent to 100 percent in Krishnapatnam Port. Krishnapatnam Port, located on the east coast of India in the Nellore district of Andhra Pradesh, is an all-weather, deep water port that has a multi-cargo facility with a current capacity of 64 million tonnes per annum (MTPA).
APSEZ, the flagship transportation arm of the diversified Adani Group, is announcing the acquisition of the residual 25 percent stake in Adani Krishnapatnam Port, (Krishnapatnam Port) for Rs 2,800 crore, the company said in a statement. With a waterfront of 20 km and 6,800 acres of land, Krishnapatnam Port has a master plan capacity of 300 MTPA and a 50-year concession, it said. Together with the 75 percent ownership acquired in October 2020, the acquisition implies an enterprise value of Rs 13,675 crore implying an EV/ FY21 EBITDA multiple of 10.3x, the company said.
The port is expected to have volumes of 38 MT, revenues of Rs 1,840 crore and EBITDA of Rs 1,325 crore in FY21, it said. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “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.”
He said 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. “We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025. We are committed to making Krishnapatnam Port the gateway port for South Andhra Pradesh and Karnataka. With its large industrial land backed with the port we will transform Krishnapatnam into a manufacturing and industrial hub,” Karan Adani added.
APSEZ 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. These represent 24 percent of the country’s total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland. The company is also developing a transshipment port at Vizhinjam, Kerala.