Adanis enter Southern India’s new EXIM Gateway – acquires Kattupalli Port in Chennai, TN

AHMEDABAD | MUMBAI | RAJKOT – Adani Ports and Special Economic Zone Ltd completed the acquisition of Kattupalli Port, executing the the Share Purchase Agreement (SPA) on June 27, 2018 inked with Larsen & Toubro Ltd, both companies said in separate filings submitted to the Stock Exchanges in India.

Kattupalli port considered to be Southern India’s new EXIM gateway is now the part of APSEZ Adani Ports and Special Economic Zone Ltd, (APSEZ) and Adanis have paid 19.5 billion (~1950 Crore) Indian Rupees as enterprise value, for the aforementioned acquisition.

Subject to customary closing conditions, the sale is expected to be completed within a week from 27th June 2018, L&T statement said.

Adani Group, announced that it has executed Share Purchase Agreement between Larsen and Toubro Limited, Marine Infrastructure Developer Private Limited, L&T Shipbuilding Limited and Adani Kattupalli Port Private Limited to acquire 97% shares of Marine Infrastructure Developer Private Limited (MIDPL), the Adani statement said.

MIDPL is the developer and operator of Kattupalli Port.

Marine Infrastructure Developers Private Limited’s revenues during the year 2017-18 was Nil and it reported a net worth of 3.2 billion (~320.53 crore) Indian Rupees as on 31 March 2018, L&T said.

Acquisition cost comprising of 19.5 billion rupees is towards enterprise value, of which 3.88 billion (~388 Crore) Indian rupees  is the consideration for sale of shares and balance 15.62 billion (~1,562 Crore) Indian Rupees is towards settlement of liabilities of Marine Infrastructure Developers Private Limited, L&T statement said.


STRATEGICALLY LOCATED

Kattupalli Port is one of the most modern ports in India emerging as Chennai’s New Gateway for EXIM trade in Chennai/Bangalore region and provides a whole new dimension of services with speed and sophistication.

Kattupalli Port is emerging as Southern India’s new EXIM gateway, because of its inbound-&-outbound proximity to international trade.

Kattupalli Port is emerging as Southern India’s new EXIM gateway, because of its inbound-&-outbound proximity to international trade.

Amongst the many advantages of Kattupalli port is its unique location – it is located 30 kilometers towards north of Chennai and has connectivity with hinterland of North Tamilnadu, Chennai, Bangalore region and South Andhra Pradesh – locations which are highly industrialized.

Speaking on the development, Mr. Karan Adani, CEO, Adani Ports and Special Economic Zone Ltd. said,

“We are happy to announce the acquisition of Kattupalli port. We are thankful to the Tamil Nadu government and Ministry of Commerce for giving approvals in record time. Adani Ports is committed to make Kattupalli port one of the largest ports in southern India. We are going to start our construction to diversify the cargo of the port and will be adding 40 MMT of new capacity in next 3 years. We are confident that with our superior infrastructure and efficient handling of cargo we will be able to reduce logistics cost of industries in the region and be one of the engines of growth.”


ADANI GROUP’S OVER ALL BUSINESS 

Adani Group is one of India’s largest integrated infrastructure conglomerates with interests in Resources (coal mining and trading), Logistics (ports, logistics, shipping and rail), Energy (renewable and thermal power generation, transmission and distribution), and Agro (commodities, edible oil, food products, cold storage and grain silos), Real Estate, Consumer Finance and Defence.

Headquartered in Ahmedabad, India, the $12-billion group has operations across the world.

The group owns and operates one of the world’s largest solar power plants in Tamil Nadu, India.

The group is committed to produce 10,000MW of renewable energy by 2022.


PORT BUSINESS & KATTUPALLI

Adani Ports and Special Economic Zone (APSEZ) is India’s largest port developer and operator.

APSEZ has 10 strategically located ports and terminals on both the western and eastern coastline of India — Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai — representing 24% of India’s total port capacity.

APSEZ is currently developing a transshipment port at Vizhinjam, Kerala.

APSEZ owns and operates India’s largest commercial port, Mundra, in Gujarat.

Kattupalli port provides ample space for future expansion projects, Adani Statement said.

Kattupalli port provides ample space for future expansion projects, Adani Statement said.

With backup area of 322 acres, Kattupalli port provides ample space for future expansion of port to facilitate trade requirements, Adani Statement said.

APSEZ plans to transform Kattupalli into a multi commodity port to handle cargoes like containers, automobiles, break bulk, general cargo, liquid cargo and project cargo, claims Adani statement.

Presently the port has two berths with quay length of 710 meters, 6 Quay cranes, 15 RTG cranes, 5120 ground slots with the capacity to handle 1.2 Million TEUs per annum.


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