Adani Ports and Special Economic Zone (APSEZ) has completed the acquisition of Krishnapatnam Port Company (KPCL) for an enterprise value of Rs. 12,000 crore. This will result in APSEZ having a controlling stake of 75% 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 is a multi-cargo facility port situated in the southern part of Andhra Pradesh a state which has the second largest coastline in India.
This acquisition will accelerate APSEZ’s stride towards 500 MMT by 2025 and is another step in implementing APSEZ’s stated strategy of cargo parity between 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 them.
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 environment, reduce emission levels and have zero tolerance for fatalities and thus improve returns to stakeholders.
@EPC World Media