MUMBAI: Adani Ports and Special Economic Zone Ltd (APSEZ), India’s leading commercial port operator, is making a bold strategic push into the eastern seaboard with its recent acquisition of a 95 per cent stake in Gopalpur Port Ltd (GPL).
While the transaction, valued at Rs1,349 crore, was finalised earlier this week, industry analysts are now weighing in on the long-term implications of this deal and what it signifies for the company’s future growth trajectory.
Bridging the cargo imbalance
APSEZ’s acquisition of Gopalpur Port is not just another expansion; it’s a key move in addressing the growing need for infrastructure development on India’s east coast.
Historically, India’s western ports have dominated in terms of cargo volumes, but the eastern seaboard is increasingly becoming crucial for trade, particularly for sectors like minerals, energy, and agriculture. By securing Gopalpur Port, APSEZ is positioning itself to capitalise on this potential and balance its cargo volumes between both coasts, a strategy that could drive its long-term revenue growth.
According to market analysts, the deal could help APSEZ tap into the underutilised trade routes on the east coast and enhance connectivity with Southeast Asia, providing an essential boost to India’s export capabilities.
Strengthening national footprint
With operations across 13 ports in seven maritime states, APSEZ already handles nearly 25 per cent of India’s cargo movement. However, the acquisition of Gopalpur Port represents more than just adding another port to the roster.
It’s a key piece in APSEZ’s strategy to create a seamless, pan-India port network capable of handling a wide range of cargo types – from dry bulk and break bulk to liquid and container cargo.
The strategic positioning of Gopalpur Port in Odisha opens up new possibilities for trade, especially for industries such as steel, coal, and fertilizers.
Capitalising on GPL’s growth potential
Gopalpur Port’s recent performance and future growth potential are key elements driving this acquisition. During the fiscal year 2022-2023, GPL handled 7.4 million metric tonnes (MMT) of cargo, generating Rs373 crore in operating revenue.
Looking forward, the port is expected to manage 11.3 MMT in the current fiscal year, with projected revenues of Rs520 crore – a 39 per cent increase.
