India’s largest private port and logistic company, Adani Port and Special Economic Zone Ltd. (APSEZ), confirm complete ownership of Adani Krishnapatnam Port, located in the southern part of Andhra Pradesh. By this ownership, APSEZ acquired the 25% stake holdings of Vishwasamudra worth Rs. 2,800 crore.
In January 2020, when APSEZ announced its 75% stake in the Krishnapatnam port, the deal was sealed by October 2020. The acquisition had an enterprise value of Rs 13,675 crore. Talking about the ownership in a press release Karan Adani, CEO of APSEZ, states that the ownership consolidation in Krishnapatnam Port will reinforce APSEZ’s progress for the 500 MMT (Million Metric Tonne) by the year 2025. It will also help the team achieve their long-term cargo parity plan between the west and east coast of India.
It is believed that Krishnapatnam port is on the verge of double maneuver traffic by 2025, which will yield higher growth with a freight augmentation plan for multiple commodities, improving employee capital.
“We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025,” remarked Karan Adani.
Krishnapatnam Port holds a capacity of 64 MMTPA (Million Metric Tonne Per Annum) and comprises a master plan capacity of 300 MMTPA. It is expected that the port should have a volume of approximately 38 MMT in FY21.
Team APSEZ is obliged to make Krishnapatnam Port the gateway for the southern part. Taking advantage of its substantial industrial land, team APSEZ ideates to transform Krishnapatnam as a manufacturing and industrial hub of India.
The acquisition is currently to be approved under the applicable laws; along with this, it will also require India’s Competition Commission’s approval, which will be accomplished within the coming three months.