JSW Infrastructure Ltd, an arm of the publicly listed JSW Steel Ltd, has acquired the ports business of the Chennai-based Chettinad Group.
JSW Infrastructure is one of the leading private sector infrastructure companies in India.
Operating since 1999, the company has a strength of more than 1200 employees.
JSW Infrastructure embodies values such as transparency, striving for excellence and dynamism with a proven record in operational efficiencies.
As a commitment to the nation, JSW Infrastructure is dedicated to developing world class airports, shipyards, townships, roads and rail connectivity, inland waterways, water treatment plants, special economic zones and other infrastructural facilities.
Cost of Acquisition
JSW Infrastructure is investing more than Rs 1,000 crore to acquire as well as modernize these port assets.
It have a combined cargo handling capacity of 17 million tonnes per annum.
Benefits of Acquisition
This acquisition allows JSW Infrastructure ownership and operational control of a deep draft international coal terminal and a bulk terminal at Kamarajar Port Limited (KPL)
The move will also provide business synergies with the company’s upcoming 30 MTPA coal export terminal at the Paradip port in Odisha.
This asset is scheduled to begin operations during the first half of the next calendar year.
In FY 19-20, all the terminals at KPL handled 31.75 MTPA cargo and it is expected to increase its cargo traffic substantially over the next few years.
As Per the company’s annual report for the 2019-20 financial year, it reported consolidated revenue from operations of Rs 1,143.14 crore with net profits of Rs 196.52 crore.
Container traffic at NMPT has been growing at a Compound annual growth rate (CAGR) of 15 per cent since 2013, as compared to overall Indian container traffic growth of 7.52 per cent.
Comment from CEO
“The successful acquisition of these port assets consolidates our strategic presence across south east & 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 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,” Arun Maheshwari.
Comment from Vice President
“The newly acquired terminals are strategic assets for JSW Infrastructure.
Their addition enables us to service 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”, Devki Nandan.