Adani bought stake in Krishnapatnam for ₹ 2,800 crore

A top official said that Adani Ports and Special Economic Zone Limited (APSEZ) has bought a residual 25% stake in Adani Krishnapatnam Port Limited (Krishnapatnam Port) from Vishwasamudra Holdings for ₹ 2,800 crore.

Karan Adani, CEO and full-time director Karna Adani said, “The consolidation of ownership in Krishnapatnam gives APSEZ’s Straits strength of 500 MT (million tonnes) by 2025.

“Krishnapatnam Port is on track to double traffic by 2025 and will deliver high growth through a multi-product and cargo-enhancement strategy, while increasing the return on capital employed.”

The port 38 MT, revenue of ₹ 1,840 crore and. It is expected to end FY21 with an EBITDA of 1,2525 crore.

Since its acquisition, Krishnapatnam Port had focused on business process re-engineering, resulting in EBITDA margins improving from 57% to 72% in FY15, the company said.

APSEZ acquired 75% ownership in October. The port is now a wholly owned subsidiary of APSEZ with a total enterprise value of 75 13,675 crores.

All-Weather, deepwater port is the second largest private sector port located in the east coast of India in Nellore district of Andhra Pradesh. It has a multi-cargo facility with a capacity of 64 million tonnes per year and a master plan capacity of 300 MTPA in addition to a 50-year concession. “We are confident that we will be able to replicate throughput and triple EBITDA at Krishnapatnam Port by 2025.”

“We are committed to making Krishnapatnam Port a gateway to South Andhra Pradesh and Karnataka. With the large industrial land supported by the port, we will transform Krishnapatnam into a manufacturing and industrial hub, ”said Mr. Adani.