22 May , 2024 By : Debdeep Gupta
The Adani Group is gearing up with a $3-billion investment to bolster its port operations with an eye on the corridor that connects India to Europe, the Mint has reported. The move is aimed at leveraging the growing demand for iron ore and coal imports as well as the export of finished goods.
The Gautam Adani-led conglomerate plans to increase its overall port handling capacity from around 600 million tonnes per annum to 800 million tonnes in the next two years. The expansion would primarily be achieved through a series of international acquisitions, the report cited sources as saying.
The group is targeting at least three large ports across coastal Europe, Africa, and Southeast Asia, which aligns with its strategy to enhance its global footprint, the report said.
The group manages its ports business under Adani Ports and Special Economic Zone Ltd (APSEZ). The $3-billion capital expenditure is expected to be funded through a combination of cash reserves, internal accruals, and debt
The objective of the expansion is to increase the contribution of international ports to APSEZ's revenue from 10 percent to approximately 20-25 percent within the next three years.
The group operates port facilities in Israel, Sri Lanka, Indonesia, Tanzania, and Australia.
The Adani Ports stock ended May 21 at Rs 1,382.55 on the National Stock Exchange, up 3.16 percent from the previous close.
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