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HomePosts Tagged "Adani Ports and Special Economic Zone Ltd (APSEZ)"
Agribusiness, Company News, Finance, India, Supply Chain, Transportation

The acquisition is made at an enterprise value of Rs 3,080 crores and company will purchase the 56 per cent stake of the SP Group and 39 per cent of Orissa Stevedores Limited (OSL) in GPL.

Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, has entered into a definitive agreement to purchase the 56 per cent stake of the SP Group and 39 per cent of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL). The acquisition is made at an enterprise value of Rs 3,080 crores and the transaction is subject to statutory approvals and fulfilment of other conditions precedents.

Gopalpur port is located on the east coast of India and has the capacity to handle 20 MMTPA. The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.

As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. The port plays an important role in supporting the growth of mineral-based industries in its hinterland, like iron & steel, alumina and others. The concessionaire has full flexibility to design and expand the port as per the market demand. GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.

The port is well connected with its hinterland through the national Highway NH16 and a dedicated railway line connects the port with the Chennai-Howrah main line. # In addition to the enterprise value stated above there is a contingent consideration of INR 270 crores estimated to be payable after 5.5 years, subject to fulfilment of certain conditions as agreed with the sellers.

Karan Adani, Managing Director of APSEZ, said, “The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighboring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach.”

In FY’24, GPL is estimated to handle about 11.3 MMT cargo (YoY growth – 52 per cent) and earn a revenue of Rs 520 crores (YoY growth – 39 per cent) and achieve EBITDA of Rs 232 crores (YoY growth – 65 per cent). In our view, the Gopalpur Port is all set for strong growth and margin expansion in FY’25 with opportunities already identified for achieving higher operational efficiencies and infra debottlenecking, implying further value accretion for APSEZ shareholders.

The acquisition is made at an enterprise

Company News, Finance, India, Supply Chain, Transportation

Portfolio ports deliver 300 MMT cargo milestone in a record 266 days.

In December 2023, Adani Ports and Special Economic Zone Ltd (APSEZ) handled 35.65 MMT of cargo volumes, resulting in a strong 42 per cent year-on-year (YoY) increase. Dry bulk cargo handling was up 63 per cent while handling of containers increased by over 28 per cent on a YoY basis. For the quarter ended December, APSEZ handled around 109 MMT of overall cargo, with around 106 MMT contributed by our domestic port’s portfolio. In the initial nine months of FY 24, APSEZ managed around 311 MMT of total cargo, which is a healthy 23 per cent YoY growth.

“APSEZ crossed the 300 MMT cargo mark in just 266 days versus its previous best of 329 days in the previous financial year. This milestone only proves that our strategy of driving operational efficiencies to achieve industry leading growth is yielding the desired results. We are now targeting over 400 MMT of cargo volumes in FY24, surpassing the upper end of the guidance range (370-390 MMT) provided at the start of the current financial year,” said Karan Adani, CEO and Whole Time Director, APSEZ.

During the Apr-Dec’23 period, many APSEZ ports recorded new milestones. Mundra, the flagship port, handled around 5.5 million TEUs in a record nine months and is on track to surpass 7 million TEUs of container cargo volumes during FY24. It handled 3,000 ships in just 261 days, surpassing its previous record of 288 days in FY23. The JV terminal at Mundra Port, AICTPL, created a national record by handling 3,00,431 TEUs (around 10,000 TEUs every day) in November 2023, breaking its own record of 2,98,634 TEUs in March 2021. In October 2023, the port handled 16 MMT of cargo volumes and established a new milestone of achieving the highest cargo volumes by any Indian port in a single month.

Other milestones recorded by Mundra Port during the period under consideration include the highest-ever parcel size of fertilizer vessel (100,282 MT), the largest count of over-dimensional container/s in a single vessel (219 TEUs), the largest shipment of soyabean oil (61,841 MT) and the berthing of the largest-ever vessel that has called on any Indian port (around 399 meters long and 54 meters wide). In December 2023, the port also handled 43 vessel movements in 24 hours, surpassing its previous record of 40 vessels.

Portfolio ports deliver 300 MMT cargo milestone

Company News, India, Logistics, Supply Chain

Mundra continues to be India’s largest seaport with 155 MMT of total cargo handled during the year.

Ahmedabad based Adani Ports and Special Economic Zone Ltd (APSEZ), the largest integrated transport utility in India and a part of the diversified Adani Group, handled 32 MMT of total cargo in March 2023, implying a Y-o-Y growth of 9.5 per cent. For the first time since July 2022, the volumes crossed the 30-MMT mark. With 339 MMT in FY23 (April 2022 – March 2023), APSEZ recorded its largest port cargo volumes ever – which is a good 9 per cent Y-o-Y growth. Adani Ports has been continuously increasing its market share for the past years, outperforming all of India’s cargo volume growth.

APSEZ consistently works on cargo diversification at all its ports. This year, Krishnapatnam Port successfully added soybeans, edible oil and sugar to its cargo portfolio while Dighi Port handled sugar, for the first time and Dhamra its first rice vessel for export to Bangladesh.

“The improvement in cargo volumes is testimony to the faith that our customers have in us,” said Karan Adani, CEO and Whole Time Director, APSEZ. “It shows our commitment to using improved efficiencies and technological integrations to drive and achieve customer satisfaction. The APSEZ’s flagship port, Mundra, is outpacing all its closest rivals and continues to be the largest port in the nation in terms of volumes handled. Mundra’s infrastructure meets world standards and provides service levels on par with those of its global competitors, making it India’s gateway for container goods.”

The overall container volumes handled by APSEZ in India jumped to 8.6 MTUs (+5% YoY), including 6.6 MTEUs at Mundra alone. It continues to be India’s largest seaport with 155 MMT of total cargo handled during the year.

Increase in cargo volume at ports reflects country’s economic prosperity. Almost 95 per cent of the trade volumes in India are carried through maritime transport. So, having world-class mega ports is imperative for the Indian coastline. APSEZ has strategically built a string of ports across the Indian coastline along with ICDs (inland container depots) and warehouses, woven intricately with self-owned rakes, covering around 90% of the country’s hinterland.

The capability to maintain deep draft ports enables APSEZ’s customers bring larger vessel parcels, thereby lowering their overall logistics cost. The lower logistics costs allow businesses to export goods, boosting domestic economy and raising the employment rate in the process. Mundra handled the deepest container vessel – MSC Washington with an arrival draft of 17.0 meters – ever handled by any Indian port, and the largest vessel, MSC Fatma, with a vessel length of 366 m and carrying capacity of 15,194 TEUs. The port also docked its first LNG-fueled vessel, Aframax Crude Oil Tanker, at its SPM facility. The draft is 14 meters long with a total displacement of 1,26,810 MT.

Mundra continues to be India’s largest seaport