Adani Ports And Special Economic Zone Ltd (APSEZ) Fundamental Analysis: Business Growth, History and Future Plans

Kinnary Nensee Kinnary Nensee
Dec 5, 2022 7 min read
Adani Ports And Special Economic Zone Ltd (APSEZ) Fundamental Analysis: Business Growth, History and Future Plans

Adani Ports and Special Economic Zone Limited (APSEZ) is India’s largest multi-port operator. Currently, the Key Managerial Personnel at APSEZ is Karan Gautambhai Adani who serves as the Chief Executive Officer (CEO), and Kamlesh Prabhudas Bhagia who serves as the Company Secretary. The Board of Directors of Adani Ports and Special Economic Zone includes Karan Gautambhai Adani, Nirupama Rao, Avantika Singh Aulakh, and seven other members. APSEZ is India’s largest private port operator with the country’s largest SEZ at Mundra.

Ports Under APSEZ
Business in Numbers
History of Adani Ports and Special Economic Zone Limited
Time Line of Adani Ports and Special Economic Zone Limited
Funding for Adani Ports
Future of APSEZ & Conclusion

Ports Under APSEZ

Operating as India’s largest private port Adani Ports and Special Economic Zone Ltd. is also an end-to-end logistics provider. Their 12 strategically located ports and terminals represent their vision of readiness, ability, and willingness to serve the country’s core needs. Their ports are present and functional at –

  1. Krishnapatnam Port
  2. Mundra Port, Gujarat
  3. Tuna Terminal, Gujarat
  4. Dahej Port, Gujarat
  5. Hazira Port, Gujarat
  6. Mormugao Port, Goa
  7. Vizjhinjam Port, Kerala
  8. Ennore Terminal, Tamil Nadu
  9. Vizag Terminal, Andhra Pradesh
  10. Dhamra Port, Odisha
  11. Dighi Port
  12. Kattupalli Port, Tamil Nadu

Business in Numbers

Adani Ports Share Analysis

The last five years of business for Adani Ports and Special Economic Zone Ltd. have been a bit of a curveball, which will the Covid-19 pandemic putting a giant wrench in business operations. In 2018, APSEZ recorded a total income of INR 8141.14 crore to recording INR 7679.28 crore in 2019, INR 7546.25 crore in 2020, INR 6643.46 crore in 2021, and INR 6725.53 up to now in the current year of 2022.

History of Adani Ports and Special Economic Zone Limited

It was incorporated as Gujarat Adani Port Ltd (GAPL) on May 26, 1998, and promoted by Adani Port Limited and Gujarat Port Infrastructure Development Company Ltd, a Government of Gujarat undertaking. Its main aim was to develop a private port at Mundra on the west coast of India. It was later changed to Mundra Ports and Special Economic Zone Limited to reflect its nature of business and then changed back to Adani Ports and Special Economic Zone Limited in 2012. A detailed growth timeline constitutes a better explanation of its business operations and expansions.

Time Line of Adani Ports and Special Economic Zone Limited

Adani Ports Revenue and Net-Profit Growth

Adani Ports and Special Economic Zone Limited currently operates 12 ports in India comprising 45 berths and 14 terminals across 6 states. Its journey across more than 2 decades can be explained through a detailed timeline.

  • October 2001 – The company begins commercial operations as Gujarat Adani Port Ltd. (GAPL).
  • May 2002 – Signs an agreement with Guru Govind Singh Refineries Ltd. (GGSRL) for crude oil handling at Mundra.
  • October 2002 – Signed an agreement with Indian Oil Corporation (IOC) to set up a Single Point Mooring (SPM) facility and crude oil handling at Mundra.
  • November 2002 – Signs an agreement with Indian Railways for integrating the Mundra-Adipur railway line with the national rail network.
  • January 2003 – Signs a sub-concession agreement for a container terminal.
  • July 2003 – Container Terminal I becomes operational.
  • April 2004 – The company enters into a shareholders agreement with Kutch Railway Company Ltd., for Gandhidham – Palanpur gauge conversion.
  • June 2005 – Adani Port Ltd. is amalgamated with the company with effect from April 1, 2003.
  • December 2005 – Single Point Mooring (SPM) becomes operational.
  • April 2006 – Mundra Special Economic Zone Ltd and Adani Chemicals Ltd are amalgamated with the company.
  • July 2006 – Gujarat Adani Port Ltd is renamed as Mundra Ports and Special Economic Zone Ltd (MPSEZ) to reflect the nature of business.
  • March 2007 – The company commissions two additional berths for bulk cargo operations at Terminal II.
  • April 2007 – The company signed Port Services Agreement with Tata Power promoted power generation company for handling imported coal cargo.
  • October 2007 – The company comes out with an Initial Public Offering (IPO).
  • November 2007 – Shares are listed on the National Stock Exchange and the Bombay Stock Exchange.
  • February 2008 – Company signs Port Services Agreement with Maruti Suzuki India Ltd. for handling car exports.
  • January 2009 – Adani Auto Terminal began terminal operations.
  • Entire 2009 & 2010 – The company incorporates Adani Murmugao Port Terminal Pvt Ltd, Adani Hazira Port Pvt Ltd, and Mundra International Airport Pvt Ltd as wholly owned subsidiaries. Adani Petronet (Dahej) Port Pvt. Ltd. (a joint venture between MPSEZ and Petronet LNG Ltd (PLL) ) became a subsidiary.
  • Between 2010 and 2011 – The company incorporates Adani Vizag Coal Terminal Pvt Ltd, Adani International Container Terminal Pvt Ltd, Mundra Port Pty Ltd Australia, and Mundra Port Holdings Pty Ltd Australia as subsidiary companies.
  • September 2010 – Promoter entities of the company merge with Adani Enterprises Ltd (AEL).
  • December 2010 – Mundra Port West basin commences its commercial operations with the berthing of its first cargo vessel M.V. CSK Beilun and with this, the port is poised to become the world’s largest coal import terminal.
  • January 2012 – Mundra Port and Special Economic Zone Ltd., changes its name to Adani Ports and Special Economic Zone Ltd.
  • July 2012 – APSEZ subsidiary Adani Kandla Bulk Terminal Pvt. Ltd., signs a concession agreement with the Kandla Port Trust to set up a dry bulk terminal on a build, operate and transfer basis.
  • July 2013 – APSEZ announces a joint venture with Switzerland-based MSC Mediterranean Shipping Company to operate a new container terminal at Mundra Port.
  • December 2013 – APSEZ announces completion of INR 400 crore steam coal import terminal at Vishakhapatnam – eight months ahead of schedule.
  • May 2014 – APSEZ announces a definitive agreement with L&T Infrastructure Development Projects Ltd., and Tata Steel Ltd., to acquire Dharma Port located in Odisha, east coast of India for an enterprise value of INR 5500 crore.
  • July 2014 – APSEZ receives environment and coastal regulation zone clearance from the Union Ministry of Environment and Forests for its Special Economic Zone at Mundra which is spread across 8481 hectares and includes Mundra Port.
  • February 2015 – APSEZ announces the commissioning of a bulk terminal at Tuna Tekra Kandla Port.
  • December 2015 – APSEZ formally begins the development of an international transshipment project in Vizhinjam, Kerala.
  • The year 2016 – The company announces that all ports and townships are being prepared to run on 100% renewable energy – a combination of solar and wind.
  • September 2016 – Abbot Point Operations Pty Ltd., an Australian subsidiary of APSEZ acquires ownership of Abbot Point Bulk Coal Pty Ltd.
  • April 2017 – Adani Logistics Ltd., a subsidiary of APSEZ announces the beginning of commercial operations at its Multimodal Logistics Park at Kilaraipur Ludhiana, Punjab.
  • April 2017 – APSEZ announces the commissioning of a new container terminal at Mundra Port in a joint venture with CMA Terminals for jointly operating the terminal for 15 years.
  • May 2017 – Mundra International Gateway Terminal Pvt. Ltd., is incorporated as a wholly owned subsidiary to develop, operate and maintain ports and related infrastructure.
  • April 2018 – Adani Logistics Ltd, a wholly owned company subsidiary buys Blue Star Realtors Pvt. Ltd.
  • March 2019 – The company owns 58 subsidiary companies (including step-down subsidiaries) 2 joint ventures and one associate company.
  • The year 2020 – The company acquires a 70% controlling stake at Krishnapatnam Port Company Ltd.
  • March 2020 – The company owns 67 subsidiary companies (including step-down subsidiaries), 2 joint ventures, and one associate company.
  • March 2021 – Board of Directors approves the Composite Scheme of Arrangement between Adani Ports and Special Economic Zone Ltd, Brahmi Tracks Management Services Pvt. Ltd., Adani Tracks Management Services Pvt. Ltd., Sarguja Rail Corridor Pvt. Ltd and their respective shareholders and creditors –
    - The amalgamation of Brahmi with APSEZ with effect from the appointed Β  Β  Β  Β  Β  date – 1st April 2021
    - The amalgamation of Adani Tracks with Sarguja with effect from the appointed date – 1st April 2021
    - Transfer of the Divestment Business Undertaking (Mundra Rail Business) as a going concern on a slump sale basis with effect from the appointed date – 1st April 2021 by APSEZ to Sarguja for a lumpsum consideration
  • 2020 – 2021 – Company issues and allots 30000 Rated Listed Secured Redeemable Non-Convertible Debentures (NCDs) of FV INR 10/- lakhs each aggregating to INR 3000 crore on a private placement basis listed on the Wholesale Debt Market Segment of BSE Ltd.
  • March 2021 – The Company has 77 subsidiaries and 7 joint ventures.
  • March 2021 – Completes 75% acquisition of the Krishnapatnam port and enters into a definitive agreement for the purchase of the balance 25% at an enterprise value of INR 13675 crore.
  • March 2021 – Private Equity Firm Warburg Pincus acquires 0.49% stake in Adani Ports for INR 800 crores.
  • June 2021 – Completes acquisition of the Dighi Port for INR 705 crore and announces the acquisition of Sarguja Rail Corridor and Gangavaram Port (INR 6200 crore acquisition).
  • June 2021 – Adani International Port Holdings Pte Ltd., is incorporated as a wholly-owned subsidiary.
  • April 2022 – Adani Harbour Services Ltd., a subsidiary, acquires a 100% stake in the Indian third-party marine service provider Ocean Sparkle Ltd.
  • July 2022 – Adani Ports seal Israel’s Port of Haifa bid with Gadot for INR 118 crore with Adani Ports holding 70% and the balance 30% shares held by Gadot.
  • September 2022 – Adani Port secures INR 310 crore port project in Eastern India.

Funding for Adani Ports

The total funding amount that Adani Ports and Special Economic Zone Ltd. has raised is INR 6580 crore. Most of this funding was raised in 2017.

2017 Funding:

  1. APSEZ raises over INR 3400 crore by issuing foreign currency denominated bonds for funding SEZ project.
  2. Raises INR 1000 crore through allotment of non-convertible debentures on a private placement basis.
  3. Raises INR 1600 Crore by allotment of rated, listed, secured, redeemable, non-convertible debentures on a private placement basis.

Future of APSEZ & Conclusion

By April 27, 2022, the APSEZ stock reached its all-time high of INR 924 and the company aims at becoming India’s largest integrated transport utility company by 2030. Towards this end, APSEZ is working to strengthen its capabilities in all logistics segments like ports, CTO, warehousing, last-mile delivery, ICDs, etc.

FAQs

Who controls Adani port?

Karan Gautambhai Adani as CEO(KMP) and Kamlesh Prabhudas Bhagia as Company Secretary are the key managerial personnel at Adani Ports And Special Economic Zone Limited.

Which is the largest private port in India?

Mundra Port is the largest private port in India located in the Kutch district, Gujarat.

What is the incorporation year of APSEZ?

Adani Ports and Special Economic Zone Limited went into business in 1998.

What is Adani Ports' business model?

(APSEZ) provides Dredging and Reclamation solutions, primarily for port and harbor construction.

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