Adani Ports Bolsters East Coast Presence with Gopalpur Ports Acquisition

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  • Adani Ports and Special Economic Zone (APSEZ) has acquired a substantial 95% stake in Gopalpur Ports, located in Odisha, for a significant sum of Rs 3,080 crore.
  • Adani Ports will procure a 56% stake from SP Group and a further 39% from OSL, consolidating its control over Gopalpur Ports.
  • Gopalpur Ports stands as a vital gateway for dry bulk cargo in Odisha, handling various commodities such as iron ore, coal, limestone, ilmenite, and alumina.
  • The acquisition aligns seamlessly with Adani Ports’ overarching strategy to bridge the gap between the east and west coasts of India.
  • Investors responded positively to the acquisition, with Adani Ports’ shares witnessing a notable uptick of 1.40% on the Bombay Stock Exchange.
  • The acquisition of Gopalpur Ports marks a significant milestone for Adani Ports, positioning it as a dominant player in India’s maritime landscape

Adani Ports and Special Economic Zone (APSEZ) has solidified its foothold on India’s east coast by acquiring a substantial 95% stake in Gopalpur Ports, located in Odisha, for a significant sum of Rs 3,080 crore. The move underscores APSEZ’s strategic intent to fortify its position in key maritime regions and diversify its operational portfolio.

The acquisition, finalized through a definitive agreement signed on March 25, 2024, involves purchasing stakes from prominent stakeholders, including the Shapoorji Pallonji Group (SP Group) and Orissa Stevedores Limited (OSL). Adani Ports will procure a 56% stake from SP Group and a further 39% from OSL, consolidating its control over Gopalpur Ports.

Gopalpur Ports stands as a vital gateway for dry bulk cargo in Odisha, handling various commodities such as iron ore, coal, limestone, ilmenite, and alumina. With an annual cargo throughput of 7.4 million Metric Tonnes (MMT) in the fiscal year 2023 and a capacity of 20 MMT, Gopalpur Ports is poised to significantly augment APSEZ’s operational capabilities.

Karan Adani, the Managing Director at Adani Ports, articulated the strategic significance of the acquisition, emphasizing its contribution to the expansion of the Adani Group’s pan-India port network. He highlighted the pivotal role Gopalpur Port would play in achieving cargo volume parity between India’s east and west coasts, reinforcing APSEZ’s integrated logistics approach.

Moreover, the acquisition aligns seamlessly with Adani Ports’ overarching strategy to bridge the gap between the east and west coasts of India, thereby optimizing its logistics infrastructure and enhancing operational efficiencies. The strategic location of Gopalpur Port offers unparalleled access to the mining hubs of Odisha and adjoining states, further enhancing its attractiveness as a valuable asset within APSEZ’s expansive portfolio.

Investors responded positively to the acquisition, with Adani Ports’ shares witnessing a notable uptick of 1.40% on the Bombay Stock Exchange. This bullish sentiment underscores investor confidence in Adani Ports’ strategic vision and its ability to leverage acquisitions for sustainable growth and value creation.

The acquisition of Gopalpur Ports marks a significant milestone for Adani Ports, positioning it as a dominant player in India’s maritime landscape and underscoring its commitment to fostering robust infrastructural development along the East Coast. With a firm focus on operational excellence and strategic expansion, Adani Ports is poised to unlock new avenues for growth and consolidate its leadership position in the port infrastructure sector.

 

(With inputs from agencies)

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