The deal is being executed through JSW Infrastructure’s wholly-owned subsidiary JSW Dharamtar Port, the company said in a regulatory update.
JSW Infrastructure, the ports business of Sajjan Jindal-led JSW Group, has entered into an agreement to acquire a majority stake held by Shapoorji Pallonji Group (SP Group) in PNP Maritime Services (PNP Port) for an enterprise value of Rs 700 crore.
According to the share purchase agreement, the company will acquire a 50% stake and an additional one share from SP Group firm SP Port Maintenance. The deal is being executed through JSW Infrastructure’s wholly-owned subsidiary JSW Dharamtar Port, the company said in a regulatory update.
Nrupal Patil family, current owners of PNP Port, will continue to hold the remaining stake in the company.
PNP Port, located at Shahbaj, Raigad district in Maharashtra, has a total capacity of 5 million tonne per annum (MTPA). On completion of the deal, PNP Port will become a step-down subsidiary of the company, it said, adding that the deal was expected to be completed in 15 days.
JSW Infrastructure, India’s second-largest commercial port company, also intends to upgrade PNP Port and expand its capacity to 19 MTPA in a phased manner.
PNP Port had recorded revenues of Rs 211.63 crore in FY23, Rs 195.19 crore in FY22 and Rs 164.09 crore in FY21.
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The port is a strategic asset for JSW infrastructure as it will allow the company to service its third-party customers in India, apart from deriving synergies with its existing ports and terminals.
The acquisition is part of JSW Infrastructure’s plans to expand organically and inorganically and to provide end-to-end logistics services near the cargo consumption and generation centres. PNP Port is expected to strengthen the company’s position to provide hub-and-spoke model services, which will help in substantial savings in logistics costs, it added.
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Earlier this November, JSW Infrastructure won a contract to develop Keni Port in Karnataka with an estimated cost of Rs 4,119 crore. The greenfield port, one of the two new ports planned by the state government, would be developed with an initial cargo-handling capacity of 30 MTPA.
Earlier in an interview to FE, JSW Infrastructure’s joint MD & CEO Arun Maheshwari said that the company was planning to hike capacity utilisation across all its ports to about 80-85% in the coming years, banking on a rise in cargo movement in the country. The firm was also planning to nearly double total cargo handling capacity to 300 MTPA.
