APSEZ acquires 75 per cent stake in KPCL
PORTS & SHIPPING

APSEZ acquires 75 per cent stake in KPCL

Adani Ports and Special Economic Zone (APSEZ) on 5 October completed the acquisition of the Krishnapatnam Port Company (KPL) in Andhra Pradesh for an enterprise value of Rs 120 billion. But, this enterprise value is lower compared to the deal that APSEZ signed with KPL at the beginning of the year. Present enterprise value is 13 per cent lower than the original deal value of Rs 135 billion.

This strategic and significant move will result in APSEZ having a controlling stake of 75 per cent in KPCL and will help in accelerating its progress towards 500 million tonnes cargo handling capacity by 2025.

KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh, the state with the second-largest coastline of in India. In FY21, KPCL is expected to generate an EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately Rs 12 billion, resulting in an acquisition EV (enterprise value) or EBITDA multiple of 10.

Andhra Pradesh government gave a green signal for this acquisition last month. APSEZ already control ports like Kattupalli and a terminal at the Kamarajar Port in Ennore, suburban Chennai. With this new addition, they will have 12 ports in their kitty and this will result in APSEZ controlling a third of the country’s total port capacity.

The distance between Krishnapatnam and Bengaluru is 400 km and the port can help to attract industries even in Tamil Nadu’s industrial town of Hosur to export or import.

Adani is also developing a deep seaport at Vizhinjam near Thiruvananthapuram which could help the company in offering a range of options to its users to connect with global destinations.

With acquiring controlling stakes in some of the major airports such as Mumbai and aiming to become India’s largest private airport operator, Adani is on its way to emerge as an infrastructural giant in the near future.

Adani Ports and Special Economic Zone (APSEZ) on 5 October completed the acquisition of the Krishnapatnam Port Company (KPL) in Andhra Pradesh for an enterprise value of Rs 120 billion. But, this enterprise value is lower compared to the deal that APSEZ signed with KPL at the beginning of the year. Present enterprise value is 13 per cent lower than the original deal value of Rs 135 billion.This strategic and significant move will result in APSEZ having a controlling stake of 75 per cent in KPCL and will help in accelerating its progress towards 500 million tonnes cargo handling capacity by 2025.KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh, the state with the second-largest coastline of in India. In FY21, KPCL is expected to generate an EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately Rs 12 billion, resulting in an acquisition EV (enterprise value) or EBITDA multiple of 10.Andhra Pradesh government gave a green signal for this acquisition last month. APSEZ already control ports like Kattupalli and a terminal at the Kamarajar Port in Ennore, suburban Chennai. With this new addition, they will have 12 ports in their kitty and this will result in APSEZ controlling a third of the country’s total port capacity.The distance between Krishnapatnam and Bengaluru is 400 km and the port can help to attract industries even in Tamil Nadu’s industrial town of Hosur to export or import.Adani is also developing a deep seaport at Vizhinjam near Thiruvananthapuram which could help the company in offering a range of options to its users to connect with global destinations.With acquiring controlling stakes in some of the major airports such as Mumbai and aiming to become India’s largest private airport operator, Adani is on its way to emerge as an infrastructural giant in the near future.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?