The Competition Commission of India (CCI) recently gave a nod to APSEZ (Adani Ports and Special Economic Zone Limited) for the acquisition of the remaining25 per cent shareholding at the Krishnapatnam Port Limited, from Vishwasamudra Holdings. It already holds 75 per cent share of the port that was acquired in December 2020. With the recent approval from CCI, thesubsidiary of the GautamAdani-founded Adani Group will now have 100 per cent ownership.
This is just one among the series of acquisitions made by the group’s ports & logistics business this year. Earlier in April, it acquired an89.6 per cent stake in Gangavaram Port Ltd – 58.1 per cent held by DVS Raju and family and 31.5 per cent by Windy Lakeside Investment Ltd.
Besides Andhra Pradesh, the Adani Group operates its port businessesas in Adani group Goa, Maharashtra, Gujarat, Kerala, Chennai, Odisha, and Karnataka.
APSEZ has also been expanding its global footprint as well.. Among its recent international ventures is theWest Container Terminal in Colombo, which it will develop on a Build, Operate and Transfer basis in partnership with John Keels Holdings PLC.It received the LoI (Letter of Intent) for the same from Sri Lankan authorities in March.
The series of such partnerships and acquisitions has significantly contributed to India’s ports and logistics sector. . APSEZ recorded a consolidated net profit of over Rs 1,287 crorein the March quarter 2021, as against Rs 334 crore in the same quarter last year. Meanwhile, Adani Group’s chairman and founder – GautamAdani, has emerged as Asia’s second richest person, surpassing Chinese billionaire ZongShanshan.
Today, India’s port and shipping industry facilitates over 95 per cent of the country’s trading by volume. Considering the vital role that the sector plays in the economy, the government too has been encouraging more private-public partnerships along with mergers and acquisitions. While the GautamAdani-ledorganisation is among the major private players that have been partaking in the same, others include JSW Infrastructure that acquired Chettinad Group’s port business for over USD 135 million last year.