APSEZ's Mega Investment: ₹80,000 Crore Boost for India's Ports.

Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private port operator, is exploring international acquisitions, focusing on key trade routes in South East Asia, West Asia, and Africa. The company is in early discussions for partnerships, prioritizing collaboration with strong local players while considering geopolitical and currency risks.

Domestically, APSEZ has announced an ambitious ₹80,000 crore capital expenditure plan for FY25-FY28—nearly doubling its previous decade’s investment of ₹42,000 crore. The funds will primarily come from internal accruals, with some debt financing if needed. The breakdown includes ₹50,000 crore for port development, ₹25,000 crore for logistics, and ₹5,000 crore for maintenance. Key projects include the Vizhinjam transshipment hub and capacity expansions at Krishnapatnam and Gangavaram.

Currently operating internationally in Haifa (Israel) and Dar-es-Salaam (Tanzania), APSEZ is set to commission new berths in Colombo (Sri Lanka). The company aims to increase its cargo handling capacity from 633 million tonnes (mt) to 1,000 mt by 2030, targeting 800-850 mt in cargo volumes. Major brownfield expansions are underway at Mundra, Hazira, Dhamra, and Krishnapatnam.

Financially, APSEZ remains strong, with an annual EBITDA run rate of ₹18,000 crore and a net debt-to-EBITDA ratio of 2.1x. While internal accruals are the primary funding source, the company may raise ₹20,000 crore in debt if required, leveraging its AAA+ credit rating.

APSEZ is evolving into an integrated logistics solutions provider, combining port operations with transport and supply chain services. Analysts expect strong cash flow generation due to its high proportion of sticky cargo and ongoing diversification.

News by Rahul Yelligetti.