Adani Ports and Special Economic Zone (APSEZ) has taken the initiative to add value to the eastern ports of India. A press release delivered on Tuesday stated that the Adani group plans on acquiring 95% stake in Odisha’s Gopalpur Port (GPL) with equity being 1,349 INR cr.
The enterprise is valued at a colossal amount of Rs. 3,080 crore and is to be acquired from the Shapoorji Pallonji (SP) group and Orissa Stevedores Limited (OSL). The reason behind this stated by Deccan Chronicle is that the SP group is looking to reduce their debt which amounts up to around Rs. 20,000 crore. Their recent diversification to both Dharamtar and Gopalpur port prove their knack of being able to create stakeholder value in a short span of time.
Adani Ports and Special Economic Zone’s port dominance
Currently, APSEZ has over 580 MMPTA capacity which includes 13 ports all across India. According to their website, adaniports, they represent over 24% of the country’s port capacity. The terminals located across India are Ganagavaram, Karaikal, Krishnapatnam, Mundra, Tuna, Dahez, Hazira, Mormugao, Vizhinjam, Kattupalli, Ennore, Dhamra and Dhigi Ports, mainly situated on the western coastline.
A report published on their official website reviewed about Gopalpur which is positioned on the eastern coast and is a port linked by both road and rail. This Port boasts a capacity of 20 MMTPA and promising opportunities for further growth. Its advantageous location near mineral-rich areas in the hinterland presents considerable potential. Integrating this port into our portfolio will enhance synergy with our current ports and bolster APSEZ’s footprint along the East Coast.
The acquisition of GPL will enhance the cargo volume of APSEZ and drastically strengthen their logistics approach.
Adani group will take over one third cargo industry in India with this deal, outdistancing both JSW Infrastructure Ltd. and Gujarat Pipawav Port Ltd. JSW holds 10 Ports across the country with a closing price of 239.20 and their market capitalization stands at 50240.78 Cr today. Whereas, APSEZ has a total market capitalization of 285,937 Cr.
Impacts of the Deal
According to Business Today, GPL operates as a port specializing in managing a wide range of dry bulk and break bulk cargo. With deep draft capabilities and versatility in handling multiple types of cargo, including iron ore, coal, limestone, ilmenite sand, and alumina, it is classified as a multi-cargo port. In the fiscal year 2023, GPL facilitated the handling of 7.4 million metric tons of cargo, operating at a capacity of 20 million metric tons.
The strategic positioning of GPL will provide APSEZ with unparalleled access to the mining centers of Odisha and nearby states, enabling the expansion of their logistical reach into the hinterland.
According to Economic Times, GPL in FY24 is targeted to handle cargo of around 11.3 MMT, at a return of Rs 520 crore which is 39 per cent higher on an annual basis.
Adani Ports (APSEZ) is making a big splash by acquiring Gopalpur Port (GPL) in Odisha.
This move strengthens their grip on the Indian port industry, especially on the eastern coast. In a nutshell, APSEZ’s acquisition of GPL is a game-changer, solidifying their leadership in the Indian port sector.
The future looks bright for continued growth and expansion, with a focus on efficiency, integration, and potentially, sustainability, with creating a sustainable environment being their major stand point.
