Adani Ports and Special Economic Zone Ltd (APSEZ) has finalised a definitive agreement to acquire a 56 per cent stake of the SP Group and 39 per cent of Orissa Stevedores Ltd (OSL) in Gopalpur Port Ltd (GPL). The acquisition, valued at Rs 3,080 crore, is subject to regulatory approvals and other conditions precedents.
Located on the east coast of India, Gopalpur port boasts a handling capacity of 20 MMTPA and was awarded a 30-year concession by the Government of Odisha in 2006, extendable by two terms of 10 years each.
As a deep draft, multi-cargo port, Gopalpur facilitates the movement of various dry bulk cargoes, including iron ore, coal, limestone, ilmenite, and alumina. Its strategic location plays a pivotal role in supporting the growth of mineral-based industries in the region, such as iron & steel and alumina. GPL enjoys the flexibility to tailor its operations and expand in line with market demands, having secured over 500 acre of leased land for development, with provisions for additional land acquisition.
The port’s connectivity with the hinterland is ensured through National Highway NH16 and a dedicated railway line linked to the Chennai-Howrah main line. Additionally, a contingent consideration of Rs 270 crore, payable after 5.5 years subject to certain conditions, is part of the acquisition deal.
Commenting on the acquisition, Karan Adani, Managing Director, APSEZ, stated, “The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighboring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach.”
In FY’24, GPL is projected to handle approximately 11.3 MMT cargo (Year-on-Year growth – 52 per cent) and generate a revenue of Rs 520 crore (YoY growth – 39 per cent), achieving an EBITDA of Rs 232 crore (YoY growth – 65 per cent). With identified opportunities for operational efficiencies and infrastructural debottlenecking, Gopalpur Port is poised for robust growth and margin expansion in FY’25, promising further value accretion for APSEZ shareholders.