Adani Group to acquire 100% stake in Ocean Sparkle Ltd

Through its subsidiary, the Adani Harbour Services Ltd (TAHSL), the Adani Ports and Special Economic Zone Ltd (APSEZ) has agreed to the acquisition of a 100% stake in Ocean Sparkle Ltd (OSL), India’s topmost third party marine services provider.

The main activities held by the company include towage, pilotage, and dredging.

OSL is a market leader, with a network of 94 owned boats and 13 owned by other parties. OSL has a market capitalisation of Rs 1,700 crore and Rs 300 crore in free cash.

P Jairaj Kumar, who will continue as Chairman of the OSL board, founded the firm in 1995 with a group of marine technocrats.

Given the synergies between OSL and Adani Harbour Services, the combined business is likely to grow in five years with higher margins, generating considerable value for APSEZ shareholders.

Karan Adani, APSEZ's CEO and Whole-Time Director, told the media that this acquisition gives APSEZ a significant share of India's marine services market and a platform to expand its presence in other countries, easing its path to becoming the world's largest port operator by 2030 and largest integrated transportation utility in India.

OSL has long-term relationships with its current clients, with contracts ranging from 5 to 20 years in length (the average contract length is seven years).

The contracts are on a Take or Pay (TOPA) basis, ensuring OSL's business model's stability.

OSL has established and deployed a workforce of 1,800 people across India over the years.

Through its activities in Oman, Saudi Arabia, Sri Lanka, Qatar, Yemen, and Africa, the company has extensive expertise in worldwide marine servicing.

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