Adani Ports gets nod for ₹45,000 crore Mundra port expansion
What's the story
Adani Ports and Special Economic Zone (APSEZ) has received crucial environmental and coastal regulation zone approvals for a significant expansion of Mundra port located in the state of Gujarat.
The company plans to invest ₹45,000 crore in this project, as reported by The Economic Times.
Mundra port, which currently handles the highest cargo volume of any Indian port, is set to undergo substantial growth with this investment from the Adani Group.
Expansion details
Mundra port's capacity to double with Adani's investment
The expansion plans for Mundra port include doubling its current capacity.
The Adani Group's investment is expected to significantly boost the port's capabilities.
According to APSEZ, Mundra Port is projected to surpass the 200 MMT cargo volume mark in FY25.
This expansion is a key part of APSEZ's broader strategy to increase cargo volumes across its various ports in India.
Business impact
Adani Group's India volumes largely driven by Mundra Port
The Adani Group's operations in India are heavily reliant on Mundra Port, which accounted for 44% of the cargo volumes at the end of FY24.
The company had sought approval from the Ministry of Environment's Expert Appraisal Committee (EAC) for this expansion.
The EAC has recommended the proposal for environment and CRZ clearance after reviewing the documents submitted by APSEZ and holding detailed discussions on May 15.
Growth strategy
Mundra Port's role in APSEZ's expansion plans
Mundra Port is a key player in APSEZ's expansion strategy in India.
In FY24, APSEZ handled around 27% of India's total cargo and 44% of container cargo.
For FY25, Adani Port has issued guidance predicting cargo volumes of 460-480 MMT, revenue between ₹29,000-31,000 crore, EBITDA between ₹17,000-18,000 crore and a net debt to EBITDA ratio of 2.2-2.5x.
Future goals
APSEZ's ambitious cargo volume target for 2025
Ashwani Gupta, the whole-time Director and CEO of APSEZ, has set an ambitious target for the company.
He stated that APSEZ is well-positioned to achieve a cargo volume of 500 MMT in 2025, aided by the recently acquired Gopalpur Port and the upcoming commissioning of Vizhinjam Port this year and WCT next year.
This forms part of the company's broader expansion plans for its port operations in India.