Adani Ports and Special Economic Zone Ltd (APSEZ), India’s premier ports and logistics company, has inked a definitive agreement to acquire a significant stake in Gopalpur Port Limited (GPL). The deal encompasses the purchase of a 56% stake from the SP Group and 39% from Orissa Stevedores Limited (OSL), marking a strategic move by APSEZ to bolster its position in the maritime sector.
Located on the east coast of India, Gopalpur Port boasts a handling capacity of 20 MMTPA and plays a pivotal role in facilitating the movement of various dry bulk cargoes, including iron ore, coal, limestone, ilmenite, and alumina. Since being awarded a 30-year concession by the Government of Odisha in 2006, with provisions for extensions, GPL has been instrumental in supporting the growth of mineral-based industries in its hinterland, particularly iron & steel and alumina sectors.
The acquisition, valued at INR 3,080 crore, is contingent upon regulatory approvals and fulfillment of other conditions precedents. Additionally, there is a provision for contingent consideration of INR 270 crores, payable after 5.5 years, subject to specific conditions as agreed with the sellers.
Mr. 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 strategic location will provide unparalleled access to the mining hubs of Odisha and neighboring states, expanding our hinterland logistics footprint.”
Gopalpur Port’s connectivity is further enhanced by its proximity to national Highway NH16 and a dedicated railway line linking it to the Chennai-Howrah main line, facilitating seamless transportation of goods.
In the fiscal year 2024, GPL is estimated to handle approximately 11.3 MMT cargo, with a year-on-year growth of 52%, generating revenues of INR 520 crore and achieving an EBITDA of INR 232 crore. With identified opportunities for operational efficiencies and infra debottlenecking, GPL is poised for robust growth and margin expansion in FY’25, offering significant value accretion for APSEZ shareholders.
The acquisition underscores APSEZ’s commitment to fortifying its pan-India port network and leveraging synergies to drive operational excellence and customer satisfaction in the evolving maritime landscape.
