Gopalpur Port Acquisition For 3,080 Crores By APSEZ

Adani Ports and Special Economic Zone Ltd (APSEZ) has finalized a landmark deal to acquire controlling stakes in Gopalpur Port Limited (GPL), marking a significant stride in expanding its port network and bolstering its integrated logistics approach.

Under the definitive agreement, APSEZ will procure a 56 per cent stake from the SP Group and 39 per cent from Orissa Stevedores Limited (OSL) in GPL, valuing the enterprise at Rs 3,080 crore.

This strategic move underscores APSEZ’s commitment to fortify its presence on India’s east coast.

Situated on the eastern seaboard, Gopalpur Port boasts a robust capacity to handle 20 MMTPA (million metric tonnes per annum) of diverse cargo, including vital commodities like iron ore, coal, limestone, ilmenite, and alumina.

The port’s pivotal role in supporting the growth of mineral-based industries in its hinterland underscores its economic significance.

Gopalpur Port, awarded a 30-year concession by the Government of Odisha in 2006 with provision for extensions, enjoys strategic connectivity facilitated by national Highway NH16 and a dedicated railway line linking it to the Chennai-Howrah main line.

Furthermore, with more than 500 acres of leased land for development and the potential for additional land acquisition, GPL is poised for substantial expansion to meet evolving market demands.

Karan Adani, Managing Director of APSEZ, expressed enthusiasm over the acquisition, emphasizing the transformative potential it holds for the Adani Group’s port network.

He highlighted Gopalpur Port’s strategic location, facilitating unparalleled access to mining hubs in Odisha and neighboring states, thus augmenting APSEZ’s hinterland logistics footprint.

In fiscal year 2024, GPL is projected to handle approximately 11.3 MMT cargo, with a notable year-on-year growth of 52 per cent, generating revenue of Rs 520 crore and achieving an EBITDA of Rs 232 crore, reflecting robust operational performance and growth prospects.

With identified opportunities for operational efficiencies and infrastructure optimization, Gopalpur Port is poised for further growth and margin expansion in fiscal year 2025, promising enhanced value for APSEZ shareholders.

The acquisition underscores APSEZ’s strategic vision to fortify its position as a key player in India’s maritime logistics landscape, poised to capitalize on emerging opportunities and drive sustainable growth in the years ahead.