Adani Ports & Special Economic Zone in focus on expansion drive

Adani Ports & Special Economic Zone (APSEZ) is going to enter in three states i.e Maharashtra, Karnataka and Andhra Pradesh. The company also plans to establish ports in at least four countries close to India like Myanmar, Bangladesh, East Africa, Southeast Asia. It has a total of nine ports in India, including Vizhinjam. The country has about 80 per cent of international trade with Colombo and Singapore. Therefore by setting up ports over there APSEZ would get advantage.

According to media reports, APSEZ will finalize locations to build ports across the three states on which the company is going to expand its operations. The company will place a bid for proposed New Mangalore port after government invitation for bidders. It may go for greenfield port instead of high buying out price for Gangavaram port in Andhra Pradesh.

APSEZ initiated work for its first international trans-shipment container port at Vizhinjam yesterday. The company will have total capacity of 490 million tonnes (MT) by the next financial year. This reflects APSEZ as India's largest ports operator in the private sector.

APSEZ’s Vizhinjam port would have capacity increment in three stages starting from 1.5 MT to 2.2 MT in second phase and then after to 3 MT in the third phase. The company will start its operation from the port within three years. It also got the cabotage law relaxation from the government for the Vizhinjam port. Therefore, the company can operate international vessels to cargo across Indian ports.

APSEZ's shareholding pattern indicates that FII holdings expanded by 831 basis points to 33.18 per cent while DII holdings contracted by 724 basis points to 5.09 per cent during September 2015 quarter. The share price of the company increased by 1.41 per cent on bourses in early trades and is trading at Rs 255.1 on intraday basis.

APSEZ is in the business of providing infrastructural facilities. The Company is primarily involved in the business of developing, operating and maintaining the port and port-based related infrastructure services, including multi product special economic zone at port location. It has segments viz. Port and Special Economic Zone activities and others. APSEZ's other segment mainly includes Aircraft Operating Income and Services as per the Concession agreement with Government of India, Ministry of Railways for movement of Container Trains on specific Railway Routes and Multi-modal Cargo storage cum logistics services through development of Inland Container Depots at various strategic locations.