Mumbai: Billionaire Gautam Adani-controlled Adani Ports and Special Economic Zone Ltd on Tuesday said it is acquiring the 58.1% stake held by DVS Raju and family in Gangavaram Port Ltd. The acquisition is valued at ₹3,604 crore and subject to regulatory approvals.
Earlier this month, Adani Ports had announced the acquisition of Warburg Pincus’s 31.5% stake in Gangavaram, and with the latest acquisition it will own a total 89.6% stake in the second largest non-major port in Andhra Pradesh.
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Gangavaram Port is located in the northern part of Andhra Pradesh next to Vizag Port. With an 64 MMT capacity, the port was established under concession from the Andhra Pradesh government that extends till 2059. It is an all-weather, deep water, multipurpose port and handles a diverse mix of dry and bulk commodities including coal, iron ore, fertilizer, limestone, bauxite, sugar, alumina, and steel.
“The acquisition of GPL is a further augmentation of our vision of capitalizing on an expanded logistics network effect that generates greater value as it expands. Every additional node that we are able to add to our network allows us to deliver a greater level of integrated and enhanced solutions to our customers. In this context, GPL is a tremendous addition to our portfolio. The associated hinterland we will now be able to tap into is one of the fastest growing in the eastern region and with the logistic synergies APSEZ brings to the table, GPL has a potential to become a 250 MMT port," said Karan Adani, CEO and whole-time director of APSEZ said.
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