Gangavaram port: Adani Ports set to buy 58.1% stake from promoters for over ₹3,600 crore

[Ryzen_renoir]

Adani Ports and Special Economic Zone Ltd (APSEZ) is set to acquire the 58.1 per cent stake held by DVS Raju and family, the promoters of Gangavaram Port Ltd, in a deal worth more than ₹3,600 crore that helps raise its stake to 89.6 per cent in the port located in Visakhapatnam.

Raju and family own about 30 crore shares in Gangavaram Port Ltd and the deal is said to have been struck at ₹120 a share, multiple sources said.

On March 3, APSEZ said it has acquired the 31.5 per cent stake held by Windy Lakeside Investment Limited (an affiliate of private equity firm Warburg Pincus LLC) in Gangavaram Port Limited (GPL) at ₹120 a share for ₹1,954 crore.

 
APSEZ said it was also in discussions with the port promoter DVS Raju and family to buy their 58.1 per cent stake in GPL, the second largest non-major port in Andhra Pradesh.

“The Adani Group never acquires minority stake in any port,” said a port industry consultant. “They always look for management and operational control. In the case of Gangavaram, it was just a case of sequencing of events,” he added.

APSEZ said it has nothing to say beyond what was mentioned during the March 3 announcement which said it was “in discussions with Raju and family to buy their 58.1 per cent stake”.

Gangavaram Port did not respond to a text message seeking comment.

The deal expands APSEZ port market share to 30 per cent across 12 locations.

Handling capacity

GPL is located in the northern part of Andhra Pradesh next to Centre-owned Visakhapatnam Port Trust with a capacity to handle 64 million tonnes (mt) of cargo.

Gangavaram Port Ltd, the entity that runs Gangavaram port, was awarded the rights by the Andhra Pradesh government to develop and operate the port for an initial period of 30 years beginning 2009 and extendable by two terms of 10 years each till 2059.

GPL is contractually mandated to share 2.1 per ent of its annual gross revenue with the AP government till 2039, 4.2 per cent from 2039 till 2049 and 8.4 per cent between 2049 and 2059.

Gangavaram is an all-weather, deep water, multi-purpose port capable of handling fully laden super capesize vessels of up to 200,000 tonnes. Currently, GPL operates 9 berths and has free hold land of about 1,800 acres. With a master plan capacity for 250 mt with 31 berths, GPL has sufficient headroom to support future growth.

GPL handles a diverse mix of dry and bulk commodities including coal, iron ore, fertilizer, limestone, bauxite, sugar, alumina and steel. GPL is the gateway port for a hinterland spread over 8 states across eastern, western, southern and central India.

In FY20, GPL handled 34.5 mt of cargo, generated revenue of ₹1,082 crore, EBITDA of ₹634 crore (margin of 59 per cent) and net profit of ₹516 crore. GPL is a debt free company with cash balance of over ₹500 crore.

 

[manadonga]

Vizag is good for more ports because deep water area in bay of bengal inkoti kattavachhu easy ga 

ade bandar lo kani ramayapatnam kani double amount ayyiddi money for construction 

 

[Ryzen_renoir]

1 minute ago, manadonga said:

Vizag is good for more ports because deep water area in bay of bengal inkoti kattavachhu easy ga 

ade bandar lo kani ramayapatnam kani double amount ayyiddi money for construction 

 

Wrong , ramayapatnam , krishnapatnam are also natural deepwater ports .

Krishnapatnam can also handle the largest vessels easily 

Bandar is the costly one to develop , even land acquisition is so costly . 

[DummyVariable]

8 minutes ago, Ryzen_renoir said:

Wrong , ramayapatnam , krishnapatnam are also natural deepwater ports .

Krishnapatnam can also handle the largest vessels easily 

Bandar is the costly one to develop , even land acquisition is so costly . 

Isn’t krishnapatnam deeper than Vizag?

[Ryzen_renoir]

5 minutes ago, DummyVariable said:

Isn’t krishnapatnam deeper than Vizag?

Yes 

[jawaani_jaaneman]

AP lo ledu ledu Anna oka 10 major ports operation ki scope vundi kada...considering its long coast line and hinterland it serves ?

In between Vizag Port and Chennai port, Is there a scope for mid size ports ? Like a segment ? 
 

Just like low cost airlines use alternate airports to put their costs lower....Does this formula work for sea ports ? Like economical sea port where costs are lower due to the way it operates...Like no frills sea port ?

[Ryzen_renoir]

1 minute ago, jawaani_jaaneman said:

AP lo ledu ledu Anna oka 10 major ports operation ki scope vundi kada...considering its long coast line and hinterland it serves ?

In between Vizag Port and Chennai port, Is there a scope for mid size ports ? Like a segment ? 
 

Just like low cost airlines use alternate airports to put their costs lower....Does this formula work for sea ports ? Like economical sea port where costs are lower due to the way it operates...Like no frills sea port ?

Actually the more ports there are the better it is , it creates a strong eco system for logistics . 

Tamil Nadu has 13 ports in operation but the main problem for them is they are too densely populated and hence find it hard to develop connectivity infrastructure like roads , railways . 

Andhra lo Godavari , krishna district kooda same situation but rest of the districts have it easier to develop ports . 

[jawaani_jaaneman]

Just now, Ryzen_renoir said:

Actually the more ports there are the better it is , it creates a strong eco system for logistics . 

Tamil Nadu has 13 ports in operation but the main problem for them is they are too densely populated and hence find it hard to develop connectivity infrastructure like roads , railways . 

Andhra lo Godavari , krishna district kooda same situation but rest of the districts have it easier to develop ports . 

There is no question about it, more the better. It also improve the turn around times, handling and other activities vastly. A competition with in itself.

AP ports la chala vundi develop cheyanik, oka 2-3 ports pakana pedithe migita ports ki saraina infra vundo ledo kuda doubt, like storage, cargo movement facilities, heavy crane operations, warehouses etc..

Captive SEZ’s around these ports can completely change the economic face of the region, medium scale manufacturing, packaging, export oriented services and food processing activities...

Sometime back I read an article on these things, unable to find that link now where the writer clearly explains the strength of AP and how ports can change the economic face of the state.

[Ryzen_renoir]

7 minutes ago, jawaani_jaaneman said:

There is no question about it, more the better. It also improve the turn around times, handling and other activities vastly. A competition with in itself.

AP ports la chala vundi develop cheyanik, oka 2-3 ports pakana pedithe migita ports ki saraina infra vundo ledo kuda doubt, like storage, cargo movement facilities, heavy crane operations, warehouses etc..

Captive SEZ’s around these ports can completely change the economic face of the region, medium scale manufacturing, packaging, export oriented services and food processing activities...

Sometime back I read an article on these things, unable to find that link now where the writer clearly explains the strength of AP and how ports can change the economic face of the state.

Main problem is there are no industries around ports except in Vizag , visakapatnam also has only old PSU and few industries  from a decade ago. 

Also the connectivity of AP ports is pathetic , that area needs development . Sagarmala dwara Adani funds lobby chewi baga sanction ayyayi

Only last year nunchi try chestunaru to bring industries around the ports 

[jawaani_jaaneman]

1 minute ago, Ryzen_renoir said:

Main problem is there are no industries around ports except in Vizag , visakapatnam also has only old PSU and few industries  from a decade ago . 

Only last year nunchi try chestunaru to bring industries around the ports 

That has always been a problem. Infra, industries are interdependent. Infra ledu ani industries raavu, industries levu ani infra radu...

Every penny invested in infra will fetch back for sure over a period of time..

Agri packaging, food processing plants etc...export oriented lantivi try chesi chudali AP Govt, May be oka decade ie IT and Capital vishayalu pakana petti, promote MSME’s around ports might turn yield some good results.

[NiranjanGaaru]

3,600 cr is bad deal, 5000 cr ki takkuva ki ediana bad deal e, gangavaram port lo anni "extra" activities jargtuntai.. 

[dewarist]

 

[DummyVariable]

31 minutes ago, Ryzen_renoir said:

Main problem is there are no industries around ports except in Vizag , visakapatnam also has only old PSU and few industries  from a decade ago. 

Also the connectivity of AP ports is pathetic , that area needs development . Sagarmala dwara Adani funds lobby chewi baga sanction ayyayi

Only last year nunchi try chestunaru to bring industries around the ports 

There is no money with the center. Ee SCS lantivi vasthayi ani kooda no nammakam and only a political talking point. Ee bada baabulu lobbying chesukoni thechchukunte thappa, I don’t see any big investments coming to Andhra. 

[Ryzen_renoir]

5 minutes ago, DummyVariable said:

There is no money with the center. Ee SCS lantivi vasthayi ani kooda no nammakam and only a political talking point. Ee bada baabulu lobbying chesukoni thechchukunte thappa, I don’t see any big investments coming to Andhra. 

Investments natural ga vastayi like sricity , vizag lo.  

Chandrababu unnapudu kooda same places loney vachayi except kia . 

Nijam ga super ga investments vachi untey TDP win ayina three MP seats  entha investment vachindhi cheppu ?  Like actual private companies , as far as I know only hcl and ashok leyland in vijaywada , Guntur  and Srikakulam combined 

[rightwinger091]

1 hour ago, jawaani_jaaneman said:

There is no question about it, more the better. It also improve the turn around times, handling and other activities vastly. A competition with in itself.

AP ports la chala vundi develop cheyanik, oka 2-3 ports pakana pedithe migita ports ki saraina infra vundo ledo kuda doubt, like storage, cargo movement facilities, heavy crane operations, warehouses etc..

Captive SEZ’s around these ports can completely change the economic face of the region, medium scale manufacturing, packaging, export oriented services and food processing activities...

Sometime back I read an article on these things, unable to find that link now where the writer clearly explains the strength of AP and how ports can change the economic face of the state.

lol avvanni cheyyataniki ap cm ki political will undali like modi in gujarat. availability of lands without political interference is impossible. if its cbn then he will first tell his kamma friends to buy if its jagan then all evagelical pastors will get notification. why will they do something for people to prosper when all they had to do is simple abuse modi and get away not doing anything cbn tried it in 2019 and faced the result yet jagan hasnt learnt anything