Adani Ports and SEZ completes acquisition of KPCL for Rs 12,000 cr
In one of the biggest acquisitions in the logistics segment, Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer, today completed the acquisition of Krishnapatnam Port Company Ltd., (KPCL) for an enterprise valuation of Rs. 12,000 crore. APSEZ will buy a controlling stake of 75 per cent in KPCL from the CVR Group and other investors.
In FY21, the port is expected to generate an EBITDA of approximately Rs.1,200 crore resulting in an acquisition EV/ EBITDA multiple of 10x.
KPCL operates a multi-cargo facility port situated in the southern part of Andhra Pradesh. This acquisition will accelerate APSEZ’s target to 500 MMT of capacity by 2025 and is another step in implementing APSEZ’s stated strategy of cargo parity between the west and east coasts of India.
Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said: “I am happy that KPCL the second-largest private port in India has now become part of APSEZ portfolio. This transformational acquisition enables us to roll out world-class customer service to an increased customer base and provide pan India solution to
“Our experience of turning around acquisitions like Dhamra and Kattupalli ports will enable us in harnessing the potential of KPCL. We will target to enhance throughput at KPCL to 100 MMT by FY25 and double its EBIDTA by FY23. With a vast waterfront and land availability of over 6,700 acres, KPCL is capable of replicating Mundra and would-be future-ready to handle 500 MMT. We will replicate our operations and maintenance philosophy at KPCL, continue to focus on the environment, reduce emission levels and have zero tolerance for fatalities and thus improve returns to stakeholders,” he added.
Adani Ports and Special Economic Zone (APSEZ), a part of globally diversified Adani Group, is the largest port developer and operator in India. In less than two decades, the company has built a formidable presence in port infrastructure and logistics services.