JSW Infrastructure has closed the acquisition of Chettinad Group’s port business in India for approximately $135m.
The deal offers proprietorship and operational control of a coal terminal and a bulk terminal at Kamarajar Port Limited (KPL), Chennai, to JSW Infrastructure.
The company also gains the ownership of coal and bulk commodity terminal at New Mangalore Port Trust (NMPT), Karnataka.
JSW Infrastructure is also investing in modernising the port assets, which hold a combined cargo handling capacity of 17 million tonnes annually.
JSW Infrastructure joint MD and CEO Arun Maheshwari said: “The successful acquisition of these port assets consolidates our strategic presence across the south-east and west coast of India. It allows us greater access to the hinterland trading hubs with promising growth potential.
“These assets also fit our strategic direction to achieve 200 million tonnes per annum cargo handling capacity over the next couple of years, offering us an opportunity to service varied requirements of a wide customer base. The newly acquired terminals will have business synergies with our upcoming 30 MTPA coal export terminal at Paradip Port Trust, which is scheduled to commence operations during first half of calendar year 2021.”
JSW Infrastructure senior vice-president and head of M&A Devki Nandan said: “The newly acquired terminals are strategic assets for JSW Infrastructure. Their addition enables us to service a higher volume of third-party customer cargo. We intend to modernise these terminals to further enhance their operational efficiency. This acquisition will immensely benefit all our stakeholders through better efficiency, reduced cost, and a world-class customer service experience.”
In FY 2019-20, all the terminals at KPL handled 31.75 MTPA cargo, and it anticipates to increase its cargo traffic significantly in the future.
NMPT is an lagoon type port, which handled approximately 39.1 million tonnes of cargo in FY 2019-20.
Compared to overall Indian container traffic growth of 7.52%, container traffic at this all-weather port has been increasing at a CAGR of 15% since 2013.