In a strategic move aimed at bolstering its foothold on India’s east coast, Adani Ports and Special Economic Zone, spearheaded by billionaire Gautam Adani, announced its acquisition of a substantial 95% stake in Odisha’s Gopalpur Port (GPL). The deal, valued at Rs 1,349 crore in equity and a total enterprise worth of Rs 3,080 crore, marks a significant stride for the company towards expanding its maritime presence.

The transaction, unveiled in a press release on Tuesday, also entails a contingent consideration of Rs 270 crore, slated for disbursement after 5.5 years, contingent upon specific conditions. APSEZ, already renowned as India’s largest private port operator, will secure a 56% stake from real estate conglomerate Shapoorji Pallonji Group (SP Group) and an additional 39% from Orissa Stevedores, further solidifying its market dominance.

As news of the acquisition rippled through the financial markets, APSEZ witnessed a 1.3% uptick in its shares, contrasting with a slight downturn in benchmark indices. Gopalpur Port, nestled along India’s eastern coastline, boasts a capacity to handle approximately 20 million metric tonnes per annum (MMTPA). Its concession, granted by the Odisha government in 2006 for a duration of 30 years with provision for extensions, underscores its pivotal role in facilitating diverse cargo operations, including iron ore, coal, limestone, ilmenite, and alumina.

Karan Adani, the managing director of Adani Ports, expressed enthusiasm about GPL’s integration into the Adani Group’s extensive port network, emphasizing the strategic equilibrium it brings between east and west coast cargo volumes, while fortifying APSEZ’s holistic logistics approach. With around 12 ports and terminals under its purview across both coasts of India, APSEZ’s acquisition of GPL heralds a new era of growth and synergy within the maritime industry.

Furthermore, GPL’s anticipated cargo handling of 11.3 MMT in FY24, with projected revenues of Rs 520 crore, signifies a notable 39% year-on-year increase, underscoring the port’s burgeoning potential. APSEZ foresees a trajectory of robust growth and margin expansion for Gopalpur Port in FY25, leveraging identified opportunities to enhance operational efficiencies and infrastructure optimization, thereby maximizing value for its shareholders.

In conclusion, the acquisition of Gopalpur Port stands as a testament to Adani Ports‘ strategic vision and commitment to driving maritime excellence, poised to chart new horizons in India’s maritime landscape.