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Adani Ports Secures Ownership of Gopalpur Port in Odisha, Purchasing from SP Group for Rs 3,080 Crore

Adani Ports has finalized a deal to purchase Gopalpur Port Limited (GPL) for an enterprise value of Rs 3,080 crore. Gopalpur Port, boasting a 20 MMTPA capacity and excellent road-rail connectivity, offers considerable opportunities for growth.

By: Team Pardaphash  Pardaphash Group
Adani Ports Secures Ownership of Gopalpur Port in Odisha, Purchasing from SP Group for Rs 3,080 Crore

Ahmedabad: Adani Ports and Special Economic Zone Ltd (APSEZ), the leading ports and logistics entity in India, announced on Tuesday its decision to acquire a significant shareholding in Gopalpur Port Limited (GPL). The company will purchase a 56% stake from the SP Group and a 39% stake from Orissa Stevedores Limited (OSL), positioning itself as a key stakeholder in GPL. The acquisition, valued at an enterprise worth of Rs 3,080 crore, is pending regulatory approvals and other customary closing conditions.

Gopalpur Port, situated along India’s eastern coastline, boasts a handling capacity of 20 MMTPA. Awarded a 30-year concession by the Government of Odisha in 2006, with options for further extensions, the port is primed for operational growth and increased cargo throughput.

A Hub for Diverse Cargo with Expansion Potential

Gopalpur Port serves as a critical node for the movement of various dry bulk commodities, including iron ore, coal, limestone, ilmenite, and alumina, thereby facilitating the growth of mineral-based industries in Odisha and surrounding areas. The port’s strategic location, coupled with over 500 acres of leased land for development and additional land options, offers substantial scope for expansion according to market demands.

Connectivity is a strength of GPL, with robust links to the hinterland via National Highway NH16 and a dedicated railway line that intersects the Chennai-Howrah main route. The acquisition deal also includes a contingent consideration of Rs 270 crores, payable after 5.5 years based on the achievement of specific conditions set forth by the sellers.

Strategic Growth and Enhanced Customer Solutions

Karan Adani, Managing Director of APSEZ, highlighted the strategic importance of the acquisition, noting that Gopalpur Port will enhance the company’s ability to offer integrated solutions to customers. This move not only expands APSEZ’s reach into the mineral-rich regions of Odisha and beyond but also adds to its national network of ports, increasing cargo volume and reinforcing its integrated logistics model.

For the fiscal year 2024, GPL is expected to handle approximately 11.3 MMT of cargo, marking a 52% year-on-year increase, and generate revenues of Rs 520 crore, up 39% from the previous year. The EBITDA is also projected to rise by 65% to Rs 232 crore. With identified opportunities for operational efficiencies and infrastructure de-bottlenecking, GPL is on a path to robust growth and margin expansion, promising substantial value addition for APSEZ shareholders.

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