VIJAYAWADA: Adani Ports and Special Economic Zone Limited (APSEZ) on Monday announced the acquisition of the residual 25 percent stake in Krishnapatnam Port for Rs 2,800 crore. This will result in APSEZ, India’s largest private Ports and Logistics company and the flagship transportation arm of the diversified Adani Group, increasing its stake from 75 per cent to 100 per cent in Krishnapatnam Port. Together with the 75 per cent ownership acquired in October 2020, the acquisition implies an enterprise value of `13,675 crore. Krishnapatnam Port is located on the east coast of India in Nellore district, close to the border between Andhra Pradesh and Tamil Nadu.
Krishnapatnam Port is an all-weather, deep water port has multi-cargo facility with a current capacity of 64 million metric tonnes per annum (MMTPA). The port is expected to have volumes of 38 MMT, revenues of `1,840 crore and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of `1,325 crore in Financial year 2021. Since the acquisition, Krishnapatnam Port has focused on business process re-engineering which has resulted in EBITDA margins improving from 57 per cent in Financial Year 2020 to 72 per cent in Financial Year 2021, a statement by the Adani Ports and Logistics said.
“The consolidation of our ownership in Krishnapatnam Port reinforces APSEZ’s stride towards 500 MMT by 2025 and achieving our broader strategy of cargo parity between west and east coasts of India. Krishnapatnam Port is on track to handle double the traffic by 2025 and will deliver high growth through a multi-product and cargo enhancement strategy while enhancing return on capital employed,’’ said Karan Adani, CEO and Whole Time Director of APSEZ.