Adani Ports to acquire a controlling stake in Vizag’s Gangavaram Port

The Adani Ports and Special Economic Zone (APSEZ), on Tuesday, has signed an agreement to acquire a controlling interest in Gangavaram Port Ltd (GPL) in Vizag.

“The APSEZ, India’s largest private ports and logistics company, and the flagship transportation arm of the diversified Adani Group, is acquiring an additional 58.1 percent stake, held by DVS Raju and family, in Gangavaram Port Limited (GPL),” the company said in a statement. The acquisition, which is valued at Rs 3,604 crore, will be taking the Adani Ports’ stake in the Gangavaram Port to 89.6 percent. “The procedure is in line with the company’s strategy, of East Coast to West Coast parity, and will provide an access to growth from new hinterland markets as it has coverage, in resource-rich and industrial belt, in the Eastern, Central, and Southern India,” it added.

Taking to Twitter, Adani Group Chairman, Gautam Adani, made the announcement. He shared, “Ports play a major role in shaping the future. Through APSEZ’s 89.6 percent stake in Gangavaram port, the Adani Group will greatly expand its pan-India cargo presence. As India’s largest private sector port developer and operator, we will accelerate the country’s, and Andhra Pradesh’s, industrialisation.”

While the transaction is expected to be completed within 6 months, it will give Adani Ports access to the second-largest non-major port in Andhra Pradesh with a 64 Million Metric Tonnes (MMT) capacity, established under a concession from the Government of Andhra Pradesh that extends till 2059. The Gangavaram Port in Vizag handles a diverse mix of dry and bulk commodities including coal, iron ore, fertilizer, limestone, bauxite, sugar, alumina, and steel. It may be noted that currently Gangavaram Port operates 9 berths and has free-hold land of 1,800 acres. With a master plan capacity of 250 Million Tonnes Per Annum (MTPA), the port has sufficient headroom to support future growth.