Hot Pursuit

Adani Ports and SEZ spurts after subsidiary acquires ICD Tumb for Rs 835 cr
(16-Aug-2022, 15:17 Hours IST)  

The deal comprises acquisition of the operational inland container depot (ICD) with capacity to handle 0.5 million twenty-foot equivalent units (TEUs).

The company said that the associated 129 acres of land provides an additional expansion path to increase capacity and cargo in near future as additional industrial corridors and logistic parks get added along these dedicated freight corrodor (DFC) routes. The Tumb ICD has a private freight terminal with four rail handling lines connected with Western DFC and has custom notified land & bonded warehouse facilities, it added.

APSEZ said that the acquisition in line with strategy to build integrated transport utility and pan India logistics infrastructure and Tumb adds to the existing seven multimodal logistics parks in the Adani Logistics portfolio.

Strategically located, Tumb serves both Hazira port & Nhava Sheva port along the Western DFC surrounded by industrial units of Gujarat Industrial Development Corporation (GIDCs) and Maharashtra Industrial Development Corporation (MIDCs), the company stated in the press release.

The acquisition based on the land value and replacement cost of existing assets is priced at an enterprise value of Rs 835 crore, implying an EV/EBITDA multiple of 7.8x (based on FY23(E) EBITDA).The deal is subject to customary regulatory and lender's approvals and is expected to close in Q2 FY23.

Karan Adani, CEO and whole time director of APSEZ, said, “Tumb is one of the largest ICDs in the country. Given its strategic positioning in the middle of one of the busiest industrial zones and access to the dedicated freight corridor allows it to meaningfully serve the vast hinterland with access to two of the busiest ports on both sides, Hazira & Nhava Sheva. In addition to cargo moving by rail being 5X greener than that moving by road, another prime benefit of the access to the DFC is the savings in average transit times that is expected to be 10 hours by rail versus 24 hours by road.”

He further added, “This acquisition fits well with our transformation strategy towards becoming a transport utility as well as move us closer to our objective of providing economical door to door services to our customers. We are confident to grow the volumes at the ICD at high double digits as we build out a sustainable world class multi-modal supply chain solution for the nation”.

Adani Logistics is the most diversified end-to-end integrated logistics service provider in India by creating Logistics Infrastructure, including Multimodal Logistics Parks, and complete rail solutions for Container, Liquid, Grain, Bulk and Auto with presence across all major markets.

Navkar Corporation is in the business of operation and development of Container Freight Stations, Inland Container Depots and other Logistics Solution.

Adani Ports & Special Economic Zone is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi product Special Economic Zone (SEZ) and related infrastructure contiguous to port at Mundra.

APSEZ consolidated net profit dropped 16.86% to Rs 1,091.56 crore in Q1 FY23 as against Rs 1,312.99 crore recorded in Q1 FY22. Revenue from operations declined 0.71% to Rs 4,637.95 crore in Q1 FY23 from Rs 4,671.19 crore reported in Q1 FY22.

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