Adani Ports Plans Global Acquisitions and Rs 800 Bn Capex Expansion
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Adani Ports Plans Global Acquisitions and Rs 800 Bn Capex Expansion

Adani Ports and Special Economic Zone (APSEZ), India's largest private port operator, is actively exploring international acquisitions and partnerships across key trade routes in South East Asia, West Asia, and Africa. At the same time, the company has outlined an aggressive expansion strategy in India, with plans to invest Rs 800 billion in capital expenditure over the next three years.

The domestic capex will primarily be funded through internal accruals, with a portion covered by debt. International expansion will be pursued through collaborations with strong local partners, though geopolitical conditions and currency fluctuations remain key considerations for mergers and acquisitions.

APSEZ currently operates internationally in Haifa, Israel, Dar-Es-Salaam, Tanzania, and has upcoming berths at Colombo, Sri Lanka. According to Macquarie Equity Research, the company is actively assessing international port expansion opportunities.

For its India-focused expansion, the Rs 800 billion investment planned between FY25 and FY28 is nearly double the Rs 420 billion spent between FY15 and FY24. Of the total, Rs 500 billion is earmarked for expanding and developing domestic ports, Rs 250 billion for the logistics business, and Rs 50 billion for maintenance.

The company’s annual EBITDA run rate stands at around Rs 180 billion, which is expected to support funding, with approximately Rs 200 billion potentially raised through debt. With a AAA+ credit rating, APSEZ is well-positioned to secure funding if needed.

Currently, APSEZ has an installed capacity of 633 million tonnes (mt) and aims to handle 1,000 mt by 2030. Major capacity expansions include Vizhinjam Port in Kerala and developments at Krishnapatnam and Gangavaram ports. Additionally, brownfield expansions are planned at Mundra, Hazira, Dhamra, and Krishnapatnam.

Macquarie forecasts strong cash-flow generation for APSEZ, supported by a diversified and stable cargo mix. The company’s net debt to EBITDA ratio stood at 2.1x as of Q3 FY25.

News source: The Hindu Businessline

Adani Ports and Special Economic Zone (APSEZ), India's largest private port operator, is actively exploring international acquisitions and partnerships across key trade routes in South East Asia, West Asia, and Africa. At the same time, the company has outlined an aggressive expansion strategy in India, with plans to invest Rs 800 billion in capital expenditure over the next three years. The domestic capex will primarily be funded through internal accruals, with a portion covered by debt. International expansion will be pursued through collaborations with strong local partners, though geopolitical conditions and currency fluctuations remain key considerations for mergers and acquisitions. APSEZ currently operates internationally in Haifa, Israel, Dar-Es-Salaam, Tanzania, and has upcoming berths at Colombo, Sri Lanka. According to Macquarie Equity Research, the company is actively assessing international port expansion opportunities. For its India-focused expansion, the Rs 800 billion investment planned between FY25 and FY28 is nearly double the Rs 420 billion spent between FY15 and FY24. Of the total, Rs 500 billion is earmarked for expanding and developing domestic ports, Rs 250 billion for the logistics business, and Rs 50 billion for maintenance. The company’s annual EBITDA run rate stands at around Rs 180 billion, which is expected to support funding, with approximately Rs 200 billion potentially raised through debt. With a AAA+ credit rating, APSEZ is well-positioned to secure funding if needed. Currently, APSEZ has an installed capacity of 633 million tonnes (mt) and aims to handle 1,000 mt by 2030. Major capacity expansions include Vizhinjam Port in Kerala and developments at Krishnapatnam and Gangavaram ports. Additionally, brownfield expansions are planned at Mundra, Hazira, Dhamra, and Krishnapatnam. Macquarie forecasts strong cash-flow generation for APSEZ, supported by a diversified and stable cargo mix. The company’s net debt to EBITDA ratio stood at 2.1x as of Q3 FY25. News source: The Hindu Businessline

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