APSEZ strides towards 500 MMT port capacity, says Karan Adani
Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private ports & logistics company and the flagship transportation arm of the diversified Adani Group, is taking full charge of Adani Krishnapatnam Port Ltd., (Krishnapatnam Port) by acquiring the residual 25% stake for for Rs.2,800 crore, up from 75% ownership acquired in October 2020.
The acquisition implies an enterprise value of Rs.13,675 crore implying an EV/FY21 EBITDA multiple of 10.3x, APSEZ said in a statement on 5 Apr 2021. The stake is being acquired from Vishwa Samudra Holdings.
Krishnapatnam Port, on the east coast of India in Nellore district of Andhra Pradesh (~180 km from Chennai Ports) close to the border between Andhra Pradesh and Tamil Nadu,is an all-weather, deep water port has multi-cargo facility with a current capacity of 64 MMTPA.
With a waterfront of 20 km and 6,800 acres of land, Krishnapatnam Port has a master plan capacity of 300 MMTPA and a 50-year concession.
The port is expected to have volumes of 38 MMT, revenues of Rs. 1,840 cr and EBITDA of Rs.1,325 crore in FY21.
Since the acquisition, Krishnapatnam Port has focused on business process re-engineering which has resulted in EBITDA margins improving from 57% in FY20 to 72% in FY21.
APSEZ CEO and Whole Time Director Karan Adani 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.
“We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025. We are committed to making Krishnapatnam Port the gateway port for South Andhra Pradesh and Karnataka. With its large industrial land backed with the port we will transform Krishnapatnam into a manufacturing and industrial hub.” he said. #investment #infrastructure #port #development /fiinews.com
