Adani Ports Acquires Odisha's Gopalpur Port For Rs 3,080 Crore

Adani Ports and Special Economic Zone (abbreviated as the APSEZ) declared that it has entered into a definitive deal to acquire Odisha’s Gopalpur Port Limited (GPL) for Rs. 3,080 crore.

Through a regulatory filing, the firm announced its deal to purchase the 56% stake of the SP Group and 39% of Orissa Stevedores Limited (abbreviated OSL) in GPL. The Gopalpur port is on India’s east coast and holds the capacity to handle 20 MMTPA.

The Odisha Government awarded a 30-year concession to GPL in 2006, providing two extensions of 10 years each.

As a multi-cargo deep draft port, Gopalpur handles a blend of dry bulk cargo, including coal, ilmenite, limestone, iron ore, and alumina. GPL has received 500+ acres of land on lease for the development and can receive more land on lease to meet capacity expansions in the future.

The port is well linked to its hinterland via the national highway NH16, and an exclusive railway line links it to the Chennai-Howrah mainline.

In FY24, GPL is expected to handle about 11.3 MMT cargo (52% year-over-year growth), generate Rs 520 crore in revenue (39% year-over-year growth), and reach Rs 232 crore in EBITDA (65% year-over-year growth).

Adani Ports anticipates Gopalpur Port’s robust growth and margin expansion in FY25. Opportunities for increased operational efficiencies and infrastructure debottlenecking have already been identified, meaning additional value accretion for the APSEZ shareholders.

GPL will expand the Adani Group’s pan-India port network, achieve east-west freight volume parity, and boost APSEZ’s integrated logistics strategy.

Adani Ports & Special Economic Zone is in the business of developing, operating, and maintaining port infrastructure (port operations and related infrastructure development) and has established a multi-product Special Economic Zone (abbreviated as the SEZ) and related infrastructures contiguous to the port in Mundra.

The company’s total net profit increased by 67.87% to a whopping Rs 2,208.41 crore in Q3 FY24, compared to Rs 1,315.54 crore at the same time last year. Revenue from operations increased by 44.59% year over year to Rs 6,920.10 crore in the quarter.

Reference: Business Standard

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