Acquires Krishnapatnam for Rs 13,500 cr
The New Year began with a ‘gold rush’ for investments in Andhra Pradesh. India’s largest port developer and operator, Adani Ports and Special Economic Zone Ltd (APSEZ) is investing Rs 13,500 crore to acquire the CVR Group-owned Krishnapatnam port on the east coast.
This is the second big ticket investment in AP, which comes close on the heels of the Chief Minister Mr Jagan Mohan Reddy’s $ 6 billion boost to Kadapa in the form of a greenfield steel plant, which will see equity participation by both foreign or Indian investors.
In a development that will inject a fresh spurt of industrial development in the State, APSEZ, the logistics arm of the Adani Group, will be acquiring a controlling stake of 75 per cent from the existing shareholders of Krishnapatnam Port Company Ltd (KPCL).
KPCL is located in the southern part of Andhra Pradesh, and is a multi-cargo facility which handled 54 MMT in FY2019.
With this dose of investment, the entire region will see the emergence of a vibrant industrial hub, as it will throw open opportunities for a broad spectrum of industries and ancillaries to come up in that area.For the Adanis, this acquisition will accelerate APSEZ’s stride towards 400 MMT by 2025.