Key Points of Adani Ports Acquires Karaikal Port:
- Adani Ports and Special Economic Zone Ltd (APSEZ) has successfully acquired Karaikal Port Pvt Ltd (KPPL) after receiving approval from the National Company Law Tribunal (NCLT).
- Karaikal Port is a significant all-weather deep-water port located in Puducherry, India, with five functional berths, three railway sidings, over 600 hectares of land, and an existing cargo handling capacity of 21.5 million metric tonnes.
- The port’s strategic location close to the industrial centers of Tamil Nadu and the upcoming 9 MMTPA CPCL refinery provides easy access to the industrial-rich hinterland of Central Tamil Nadu.
- APSEZ’s acquisition consideration of ₹1,485 crores implies an EV/EBITDA multiple of 8x on the FY23 estimated numbers.
- APSEZ CEO and whole-time director Karan Adani announced that the company will invest an additional ₹850 crores over time to upgrade infrastructure and reduce logistics costs for customers.
- APSEZ now operates 14 ports in India after the acquisition of Karaikal port and aims to double its capacity in the next five years and add a container terminal to make it a multipurpose port.
- The addition of Karaikal Port cements Adani Ports and Special Economic Zones’ position as India’s largest private ports and logistics company and a leading player in the industry.
Details of Adani Ports Acquires Karaikal Port:
Adani Ports and Special Economic Zone Ltd (APSEZ) has successfully acquired Karaikal Port Pvt Ltd (KPPL) after obtaining approval from the National Company Law Tribunal (NCLT), marking a significant addition to its already impressive portfolio of ports. The acquisition was completed after APSEZ was recognized as a successful resolution applicant during the Corporate Insolvency Resolution Process (CIRP) of KPPL.
Karaikal Port is a substantial all-weather deep-water port located in Puducherry, India. The port has five functional berths, three railway sidings, over 600 hectares of land, and an existing cargo handling capacity of 21.5 million metric tonnes. Its strategic location close to the containerized cargo-originating industrial centers of Tamil Nadu and the upcoming 9 MMTPA CPCL refinery provides easy access to the industrial-rich hinterland of Central Tamil Nadu.
APSEZ announced that the acquisition consideration of ₹1,485 crores implies an EV/EBITDA multiple of 8x on the FY23 estimated numbers. APSEZ CEO and whole-time director Karan Adani stated that the company will invest an additional ₹850 crores over time to upgrade infrastructure and reduce logistics costs for customers.
“With the acquisition of Karaikal port, APSEZ now operates 14 ports in India. We are envisaging to double the port capacity in the next five years and also add a container terminal to make it a multipurpose port,” Adani added.
Karaikal Port, established in 2009 and located in the Karaikal District of the Union Territory of Puducherry, is the only major port located between Chennai and Tuticorin. Adani Ports and Special Economic Zones, the flagship transportation arm of the diversified Adani group, is India’s largest private ports and logistics company, and the addition of Karaikal Port further cements its position as a leading player in the industry.
About Adani Ports:
Adani Ports and Special Economic Zone Limited (APSEZ) is a leading Indian logistics and port operation company. With a network of 12 ports and terminals, including Mundra, India’s first port-based Special Economic Zone (SEZ), APSEZ is the largest private port operator in India.
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