India’s foremost private port operator, Adani Ports and Special Economic Zone (APSEZ), announced on March 26 its intention to acquire a 95 percent stake in Odisha’s Gopalpur Port. The deal, valued at ₹13.49 billion, approximately ₹1,349 crore or $161.74 million, is part of Adani Port’s strategy to enhance its presence along the east coast. Adani Ports will purchase a 56 percent stake in Gopalpur Port from the real-estate conglomerate Shapoorji Pallonji Group (SP Group), and the remaining 39 percent stake from Orissa Stevedores.
The total transaction is valued at ₹30.80 billion, around ₹3,080 crore. Managing Director Karan Adani stated, “GPL (Gopalpur Port) will add to the Adani Group’s pan-India port network, east coast vs west coast cargo volume parity and strengthen APSEZ’s integrated logistics approach.” Gopalpur Port is a key hub for various dry bulk cargo such as alumina, coal, ilmenite, iron ore, and limestone. APSEZ operates and develops around 12 ports and terminals across India’s west and east coasts.
The deal, initially hinted at in early December 2023, marks a significant milestone for Adani Ports, potentially becoming its sixth multi-purpose facility on the eastern coast. Despite reports of differing valuations, with JSW Infrastructure also in discussions for the asset at an enterprise valuation of ₹3,000 crore, the deal with SP Group solidifies Adani Port’s presence in the region. The enterprise value of Gopalpur Port is estimated to be $600-650 million, with SP Group’s equity value estimated at $240-260 million, according to an Economic Times report.
Care Edge, a credit rating firm, reported that the port’s long-term bank facilities amounted to ₹1,432 crore as of February 2023. Gopalpur Port, which commenced operations in 2015, primarily serves the steel industry and is strategically positioned along the Bay of Bengal, between Paradip Port and Vizag Port. Its connectivity to the Golden Quadrilateral via NH-516 and railway sidings makes it a crucial facility for handling cargo.
The port’s ability to set market rates independently, without TAMP regulations, allows for the provision of additional value-added services. Adani Ports has experienced a significant year-on-year increase in cargo volumes, reaching 101.2 million tonnes in the second quarter, with container volumes rising by 24 percent. The company has maintained its volume growth forecast for FY24 and FY25, targeting 390-400 million tonnes and 500 million tonnes, respectively.
Adani Ports, part of the Adani Group, is India’s largest private port operator and one of the leading port companies globally. With a presence in 12 locations along the Indian coastline, Adani Ports handles cargo across key sectors like coal, containers, crude oil, and chemicals. The company is known for its state-of-the-art infrastructure, efficient operations, and commitment to sustainable practices, making it a key player in India’s maritime trade.
