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
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
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.
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
We will target to enhance throughput at
KPCL to 100 Million Metric Tons by FY25
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.
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
The port contract can be automatically
extended in two blocks of 10 years each
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.
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.