Adani Group to acquire Gopalpur Port in Odisha for Rs 3,080 cr; bolster its east coast presence – Times of India

NEW DELHI: Port major Adani Group has increased its presence on the east coast with Adani Ports entering into a definitive agreement to acquire Gopalpur Port Limited (GPL) at an enterprise value of Rs 3,080 crore. Gopalpur is a road-rail connected port with capacity of 20 MMTPA and significant potential for expansion.
Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, will purchase the 56% stake of SP Group and 39% of Orissa Stevedores Limited (OSL) in GPL.The acquisition is expected to drive synergy with the major’s existing ports and strengthen its presence on the East Coast. The transaction is subject to statutory approvals and fulfilment of other conditions precedents.
Odisha government had awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each. In addition to the enterprise value stated above there is a contingent consideration of Rs 270 crore estimated to be payable after 5.5 years, subject to fulfilment of certain conditions as agreed with the sellers.
“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,” APSEZ said in a statement.
APSEZ MD Karan Adani 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 handled about 11.3 MMT cargo (YoY growth – 52%) and earn a revenue of Rs 520 crore (YoY growth – 39%) and achieve EBITDA of Rs 232 cr (YoY growth – 65%).
APSEZ is India’s largest port developer and operator with seven strategically located ports and terminals on the west coast (Mundra, Tuna, Dahej, and Hazira in Gujarat, Mormugao in Goa, Dighi in Maharashtra and Vizhinjam in Kerala) and 7 ports and terminals on the East coast of India (Haldia in West Bengal, Dhamra in Odisha, Gangavaram and Krishnapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu and Karaikal in Puducherry, representing 27% of the country’s total port volumes.
The company is also developing a transshipment port at Colombo and operates the Haifa Port in Israel. The company aims to be world’s largest ports and logistics platform in the next decade.