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Krishnapatnam becomes the third port to be owned by the Adanis in the East Coast after Dhamra and Katupalli

Adani Ports and Special Economic Zone Ltd (APSEZ) said it has completed the acquisition of a 75 per cent stake in Krishnapatnam Port Company Ltd (KPCL) from the CVR Group for an enterprise value of Rs 12,000 crore. The enterprise value of Rs 12,000 crore is lower than the Rs 13,572 crore indicated at the time of announcing the deal on January 3. KPCL runs a private deep-water port at Krishnapatnam in Andhra Pradesh’s Nellore district.

The deal announced on Jan 3 and cleared by Andhra Pradesh cabinet on Sep 3

The deal was announced on January 3 and was cleared by the Andhra Pradesh cabinet on September 3. It has also received approval from the Competition Commission of India.

This acquisition will accelerate APSEZ’s stride towards achieving 500 million tonnes (mt) by 2025 and is another step in implementing its strategy of cargo parity between the west and east coasts of India.

Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said: Ka “The second largest private port in India has now become part of the APSEZ portfolio. This transformational acquisition enables us to roll out world class customer service to an increased customer base and provide pan-India solutions to them”.

We will target to enhance throughput at KPCL to 100 Million Metric Tons by FY25

“Our experience of turning around acquisitions like Dhamra and Kattupalli ports will enable us in harnessing the potential of KPCL. We will target to enhance throughput at KPCL to 100 Million Metric Tons by FY25. With a vast waterfront and land availability of over 6,700 acres, KPCL is capable of replicating Mundra and would be future ready to handle 500 million tons,” Adani said.

“We will replicate our operations and maintenance philosophy at KPCL, continue to focus on environment, reduce emission levels and have zero tolerance for fatalities and thus improve returns to stakeholders,” he added.

The deal is APSEZ’s biggest acquisition yet in India’s port sector in terms of value and size and helps it build scale in an industry that is dominated by the 12 state-owned ports.

The port contract can be automatically extended in two blocks of 10 years each

The acquisition will give APSEZ, India’s biggest private port operator, access to the country’s largest waterfront area (for a port) of 12.5 km and a transit storage area of 6,790 acres, of which 4,621 acres is in possession of the Krishnapatnam, a port owned by the Andhra Pradesh government, was given to the Hyderabad-based CVR Group for development and operations on a 30-year contract beginning March 2009. The port contract can be automatically extended in two blocks of 10 years each.

Currently, the port has a draft of 18.5 metres, a depth that can accommodate fully-loaded Capesize vessels of 200,000-tonne capacity. The port, located 180 km north of Chennai, currently has a capacity to handle 64 million tonnes (mt) of cargo from 13 berths. The cargo handling capacity can be scaled up to 250 mt a year, according to the master plan.

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