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Adani Ports and Special Economic Zone Limited (APSEZ) has completed the acquisition of Krishnapatnam Port Company Ltd. (KPCL) for a reported sum of Rs. 12,000 crores. This will give APSEZ a controlling stake of 75% in KPCL, previously owned by the CVR Group and other investors.
KPCL is a multi-commodity 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 progress towards a 500 million tonnes a year throughput target by 2025 and is also another step in implementing the group’s declared strategy of achieving cargo parity between the west and east coasts of India.
Karan Adani, CEO at APSEZ, says, “I am happy that KPCL, the second largest private port in India, has now become part of the APSEZ portfolio. This acquisition enables us to roll out our world class customer service to an increased customer base and provide pan-Indian solutions to them.”
Adani believes the company’s experience of turning around acquisitions like Dhamra and Kattupalli ports will enable it to harness the potential of KPCL. Karan Adani adds, “Our target is to increase throughput at KPCL to 100 million tonnes by the 2025 Financial Year and double its profitability on an EBITDA basis by the 2023 Financial Year. With a vast waterfront and land availability of over 6,700 acres, KPCL is capable of replicating the success of Mundra.”
