29 JAN, 2013, MANU BALACHANDRAN & SURAJ SOWKAR, ET BUREAU
MUMBAI: Adani Ports, India's largest private sector port company, is planning to use more than $235-million (Rs 1,300 crore) fund from stake sale at Abbot Point Coal terminal in Australia to fund its expansion plans in India's east coast. Adani Port had acquired Abbot Point coal terminal in Australia in 2011 for $2 billion.
"We will receive more than $235 million from divesting our stake in the company to the Adani Family. The fund will be available for our expansion plans on the east coast of India and can also be used to reduce our current debt", B Ravi, CFO, Adani Ports told ET.
While the company is uncertain about the stake offloading, the money will be used to step up its presence on the country's east coast where Adani's are yet to make a significant presence.
"The board has decided that the return on investment will be better if the money is used for expansion in India than in Australia. There is huge potential in port projects on the country's east coast and also in Southern India. We are not certain about the stake that we will be offloading, but independent valuers will do that soon", said B Ravi.
Last year, Adani family had also acquired the real estate arm of flagship company, Adani Enterprise, for Rs 2,500 crore. Meanwhile, the company also maintained that it has not sealed any deals with Orissabased Dhamra Port, owned by Tata Steel and Larsen and Toubro.
"We are looking at various opportunities on the east coast and Dhamra is one amongst them. We are also looking at various Greenfield projects", added B Ravi.
Indian Port operators have been looking to increase their presence in the country's east coast as trade on the Intra-Asia route has been witnessing a surge in recent times.
"Within India, the ports on the east coast have been growing at a much faster pace than the ports on the west coast. The Intra-Asia trade has been witnessing better growth and that makes the ports on the east coast a lucrative option for various terminal operators," Manish Saigal, head, transportation, KPMG had earlier told ET.
MUMBAI: Adani Ports, India's largest private sector port company, is planning to use more than $235-million (Rs 1,300 crore) fund from stake sale at Abbot Point Coal terminal in Australia to fund its expansion plans in India's east coast. Adani Port had acquired Abbot Point coal terminal in Australia in 2011 for $2 billion.
"We will receive more than $235 million from divesting our stake in the company to the Adani Family. The fund will be available for our expansion plans on the east coast of India and can also be used to reduce our current debt", B Ravi, CFO, Adani Ports told ET.
While the company is uncertain about the stake offloading, the money will be used to step up its presence on the country's east coast where Adani's are yet to make a significant presence.
"The board has decided that the return on investment will be better if the money is used for expansion in India than in Australia. There is huge potential in port projects on the country's east coast and also in Southern India. We are not certain about the stake that we will be offloading, but independent valuers will do that soon", said B Ravi.
Last year, Adani family had also acquired the real estate arm of flagship company, Adani Enterprise, for Rs 2,500 crore. Meanwhile, the company also maintained that it has not sealed any deals with Orissabased Dhamra Port, owned by Tata Steel and Larsen and Toubro.
"We are looking at various opportunities on the east coast and Dhamra is one amongst them. We are also looking at various Greenfield projects", added B Ravi.
Indian Port operators have been looking to increase their presence in the country's east coast as trade on the Intra-Asia route has been witnessing a surge in recent times.
"Within India, the ports on the east coast have been growing at a much faster pace than the ports on the west coast. The Intra-Asia trade has been witnessing better growth and that makes the ports on the east coast a lucrative option for various terminal operators," Manish Saigal, head, transportation, KPMG had earlier told ET.
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