India’s largest port developer, operator and the logistics arm of the Adani Group, APSEZ will acquire a controlling stake of 75% in Krishnapatnam Port Company Ltd (KPCL), which is 92% owned by Hyderabad-based CVR Group.
Karan Adani, CEO of APSEZ, said: “KPCL is a crown jewel to join APSEZ’s string of pearls, our network of 10 economic gateways to India and this acquisition would accelerate our stride towards FY2025 vision of handling 400 MMT of cargo. Given the best-in-class infrastructure and the distinct hinterland catered by KPCL, this acquisition will not just increase our market share to 27% but also add remarkable value to our pan-India footprint.
With the experience of successfully turning around acquisitions of Dhamra and Kattupalli ports, we are confident of harnessing the potential of KPCL and improve returns to stakeholders.”
KPCL is located in the southern part of Andhra Pradesh, the state with the second largest coastline of in India, and is a multi-cargo facility which handled 54 MMT in FY19.
This acquisition will accelerate APSEZ’s stride towards 400 MMT by 2025. The acquisition value of KPCL is approximately Rs.13,500 cr.
Mr Adani added that APSEZ aims to enhance cargo volume at KPCL to 100 MMT in around seven years and will double its EBIDTA in around four years through its process improvements and industry best practices.