Adani Ports and Special Economic Zone (APSEZ), India?s largest port developer, operator and the logistics arm of the Adani Group, will be acquiring a controlling stake of 75 per cent in the Krishnapatnam Port Company (KPCL). KPCL is located in the southern part of Andhra Pradesh, the state with the second-largest coastline in India, and is a multi-cargo facility which handled 54 million metric tonne (MMT) in FY19.

This acquisition will accelerate APSEZ?s stride towards 400 MMT by 2025.

Acquisition value of KPCL is approximately Rs 135 billion. The purchase consideration will be funded through internal accruals and existing cash balance. The acquisition is subject to regulatory approvals. The transaction is expected to be completed in 120 days.

Karan Adani, Chief Executive Officer and Whole Time Director, APSEZ said, ?KPCL is a crown jewel to join APSEZ?s string of pearls, our network of 10 economic gateways to India and this acquisition would accelerate our stride towards FY2025 vision of handling 400 MMT of cargo. Given the best-in-class infrastructure and the distinct hinterland catered by KPCL, this acquisition will not just increase our market share to 27 per cent but also add remarkable value to our pan-India footprint. With the experience of successfully turning around acquisitions of Dhamra and Kattupalli ports, we are confident of harnessing the potential of KPCL and improve returns to stakeholders.?

He added that APSEZ will target to enhance cargo volume at KPCL to 100 MMT in around seven years and will double its EBIDTA in around four years through its process improvements and industry best practices.