Ahmedabad (Gujarat) [India], March 26 (ANI): Adani Ports and Special Economic Zone Ltd (APSEZ), on Tuesday announced that it has entered into an agreement to purchase the 56% stake of the SP Group and 39% of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL). The acquisition is made at an enterprise value of INR 3,080 crore.
According to a statement from APSEZ, Gopalpur port is located on the east coast of India and has the capacity to handle 20 Million Metric Tons Per Annum (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 statement said that 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.
Karan Adani, Managing Director of APSEZ, expressed enthusiasm about the acquisition, stating, “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 neighbouring states and allow us to expand our hinterland logistics footprint.
He added, “GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach.”
The acquisition of GPL will not only enhance APSEZ’s overall cargo volume but also facilitate synergies with its existing ports, driving operational efficiencies and value creation for shareholders.
With opportunities identified for operational enhancements and infrastructure optimisation, GPL is poised for robust growth and margin expansion in the fiscal year 2025.
APSEZ in its statement says its strategic vision encompasses a shift towards becoming the largest ports and logistics platform globally, with a strong focus on sustainability and carbon neutrality.
By committing to emission reduction targets through initiatives such as the Science-Based Targets Initiative (SBTi), APSEZ reaffirms its dedication to combating climate change and fostering environmental stewardship.
In the fiscal year 2024, Gopalpur Port Limited (GPL) is projected to handle approximately 11.3 million metric tons (MMT) of cargo, indicating a year-on-year growth of 52 per cent.
This growth is anticipated to result in revenue of Rs 520 crore, marking a year-on-year increase of 39 per cent, along with an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs 232 crore, reflecting a year-on-year growth of 65 per cent. (ANI)
