NCLT approves APSEZ's acquisition of India's Karaikal port

APSEZ plans to spend an additional ₹850 crore to upgrade infrastructure and reduce logistics costs for customers. The company also aims to double the port's capacity in the next five years and add a container terminal to make it a multipurpose port, APSEZ said in a press release.

Karaikal Port is an all-weather deep-water port on India’s eastern coast, which was developed under the build, operate and transfer format by the government of Puducherry. The port has a 14-metre water draft and a land area of over 600 acres.

With five operational berths, three railway sidings, and a mechanised bulk cargo handling system, the port has a built-in cargo handling capacity of 21.5 million metric tonnes (MMT). It is the only major port between Chennai and Tuticorin, and its strategic location allows the port easy access to industrial-rich hinterland of Central Tamil Nadu. The upcoming Chennai Petroleum Corporation Limited’s (CPCL) 9 MMTPA new refinery at Nagapattinam in Tamil Nadu presents an opportunity for Karaikal Port to handle an additional large volume of liquid cargo.

In FY 2023, Karaikal Port handled approximately 10 MMT of cargo. The acquisition consideration of ₹1,485 crore implies an EV/EBITDA multiple of around 8x on FY23 EBITDA number.

“The acquisition of Karaikal Port is another milestone in consolidating our position as India’s largest transport utility. With acquisition of Karaikal port, APSEZ now operates 14 ports in India,” said Karan Adani, CEO and whole-time director, APSEZ.

Fibre2Fashion News Desk (DP)