Adani Ports and Special Economic Zone (APSEZ), is to acquire a controlling 75% stake in India’s Krishnapatanam Port Company Limited (KPCL) from existing shareholders. KPCL, which is located in the southern part of Andhra Pradesh, handled 54 million tonnes of cargo in the 2019 financial year. Adani plans to increase this throughput to more than 100 million tonnes in the next seven years.
Although the acquisition is subject to regulatory approvals, the transaction is expected to be completed within 120 days. Karan Adani, Chief Executive Officer said, “Given the best-in-class infrastructure and the distinct hinterland catered by KPCL, this acquisition will not just increase our market share, to 27%, but also add remarkable value to our pan-India footprint.”
He added, “With our experience of successfully turning around Dhamra and Kattupalli ports after acquisition, we are confident of harnessing the potential of KPCL and improve returns to stakeholders.”