Adani Ports and SEZ Ltd. completes Rs. 12000 cr acquisition of Krishnapatnam Port Company Ltd. (KPCL).

Editor Synopsis

 

  • Largest value accretive acquisition for Rs. 12,000 cr. at 10x of FY21 estimated EBITDA.
  • Acquires controlling stake of 75% in India’s second largest private sector port.
  • Acquisition to accelerate handling of 500 MMT throughput by 2025.
  • With this acquisition, market share of APSEZ in FY21 is expected to increase from 21% to 25%.

 

Ahmedabad, 5th October 2020: Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer, operator and the logistics arm of the Adani Group today announced the completion of the acquisition of Krishnapatnam Port Company Ltd., (KPCL) for an enterprise value of Rs. 12,000 cr. This will result in APSEZ having a controlling stake of 75% in KPCL from the CVR Group and other investors.

In FY21, the port is expected to generate an EBITDA of approximately Rs. 1,200 cr, resulting in an acquisition EV/ EBITDA multiple of 10x.

KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh a state which has the second largest coastline in India. 

This acquisition will accelerate APSEZ’s stride towards 500 MMT by 2025 and is another step in implementing APSEZ’s stated strategy of cargo parity between west and east coasts of India.

Mr. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “I am happy that KPCL the second largest private port in India has now become part of APSEZ portfolio. This transformational acquisition enables us to roll out world class customer service to an increased customer base and provide pan India solution to them.

 

Our experience of turning around acquisitions like Dhamra and Kattupalli ports will enable us in harnessing the potential of KPCL. We will target to enhance throughput at KPCL to 100 MMT by FY25 and double its EBIDTA by FY23. With a vast waterfront and land availability of over 6,700 acres, KPCL is capable of replicating Mundra and would be future ready to handle 500 MMT.

 

We will replicate our operations and maintenance philosophy at KPCL, continue to focus on environment, reduce emission levels and have zero tolerance for fatalities and thus improve returns to stakeholders.