Why Adani Ports Acquire Majority Stake in Gopalpur Port?
Adani Ports, India’s leading private port operator, is set to acquire a 95% stake in Gopalpur Port located in Odisha, with a total enterprise value of Rs 3,080 crore. This strategic move aims to bolster Adani Ports’ presence on the east coast of India, enhancing its port network and logistical capabilities.
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The acquisition will involve purchasing a 56% stake from real estate conglomerate Shapoorji Pallonji Group (SP Group) and a 39% stake from Orissa Stevedores. Karan Adani, the Managing Director of Adani Ports, highlighted that the addition of Gopalpur Port to the Adani Group’s portfolio will contribute to achieving cargo volume parity between the east and west coasts, further strengthening the company’s integrated logistics approach.
Gopalpur Port is known for handling a diverse range of dry bulk cargo, including commodities like iron ore, coal, limestone, ilmenite, and alumina.
The port’s operational efficiency and capacity to handle up to 20 million tonnes of freight annually make it a valuable asset for Adani Ports.
The SP Group, which acquired Gopalpur Port in 2017, has successfully developed the port’s infrastructure and established strong industry relationships, paving the way for its operational success.
The planned divestments of Gopalpur Port and Dharamtar Port at a substantial enterprise value underscore the SP Group’s commitment to creating value for stakeholders through asset turnaround and leveraging core strengths in project development.
In addition to its existing operations, Gopalpur Port is set to collaborate with Petronet LNG to construct a greenfield LNG regasification station.
This strategic partnership will provide the port with stable, long-term cash flows, further enhancing its growth prospects and positioning it as a key player in the region’s energy infrastructure landscape.
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Adani Ports’ acquisition of Gopalpur Port signifies a significant step towards expanding its presence in the eastern region of India and leveraging synergies to drive operational excellence and growth in the maritime sector.
