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JSW Infrastructure signs Share Purchase Agreement to acquire majority holding of PNP Port from SP Group

by Koushik Gope
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JSW Infrastructure, India’s second largest commercial port company and part of US$ 23 billion JSW Group has signed a Share Purchase Agreement, through its subsidiary, JSW Dharamatar Port, with SP Port Maintenance (a Shapoorji Pallonji Group Company) to acquire majority shareholding of PNP Maritime Services (PNP Port), an operating port company located at Shahbaj, Raigad district, Maharashtra, which is about 20 nautical miles from Mumbai Anchorage. The acquisition values PNP Port at an enterprise value of around Rs 700 crores with a current capacity of 5 million tonnes per annum (MTPA) and potential to expand to 19MTPA.

This acquisition is part of JSW Infrastructure’s strategic direction to explore opportunities to expand organically and inorganically, to provide end to end logistics services near the cargo consumption / generation centres. PNP port is expected to strengthen JSW Infrastructure’s position to provide Hub & Spoke model services to customers, thereby saving substantially in the logistics costs. JSW Infrastructure intends to upgrade the PNP Port facilities and expand its capacity from current 5 MTPA to 19 MTPA in a phased manner. This acquisition furthers its vision to increase the use of waterways and existing railway facility at PNP adds synergies to the last mile connectivity.

The acquisition of PNP Port is a strategic asset for JSW infrastructure. It will allow the company to service growing share of 3rd party customers in India and derive huge synergies with our existing ports & terminals. It will be able to participate in the Govt. of India Maritime Vision to move cargo through Rail- Sea- Rail route and coastal cargo. At PNP Port, development of Port based industries will be a key focus area and service to multipurpose cargo of Bulk, Container, Liquid etc.

The PNP Port is an operational port, connected with Road & Rail facilities, and servicing to various industries in the hinterland i.e. Maharashtra, Madhya Pradesh, Karnataka etc. It has a very strategic locational advantage on West Coast of India and having direct access to large cargo centres such as Mumbai, Pune, Mumbai, Palghar, Thane, Pune, Solapur, Bhiwandi, Nasik etc. PNP Port is connected with the Central & Konkan Railway network which is a very important cargo evacuation mode. With the well-connected railway system, it will be able to service customers for container, Liquid and bulk cargo in future. The Port also has very good road connectivity with Mumbai- Goa Highway.

About JSW Infrastructure:

JSW Infrastructure is part of the diversified US$ 23 billion JSW Group.

JSW Infrastructure is ranked among the second largest commercial Port companies in India by capacity operating environment-friendly seaports & terminals. Its nine state-of the-art port facilities flanked across East, West & Southern regions of the country are a testament to its commitment to nationbuilding with best-in-class infrastructure. These facilities are designed to make JSW Infrastructure a benchmark for efficiency and sustainability in port operations.

Its international presence includes a terminal it operates & maintains at Fujairah and Dibba Port, UAE. JSW Infrastructure has also announced acquisition of an Oil Terminal in Fujairah, UAE.

The existing ports & terminals of the Company are capable of handling a wide range of cargo and vessels up to Cape size. Its fully mechanised state-of-the-art facilities enable faster turnaround of vessels while ensuring efficient use of existing resources and logistical advantage to its customers. The strategic locations of these facilities combined with transparent business practises and high governance makes it a preferred business partner in the region.

JSW Infrastructure is continuously expanding its cargo-handling facilities with a healthy mix of captive and external cargo business. As part of its future growth strategy, the Company plans to enhance its overall cargo-handling capacity to 300 MTPA within next few years. It is also strengthening its market position through a holistic approach by focusing on value-added offerings with end-to-end logistic support and a decent cargo profile. The company has been acknowledged for its business excellence from time to time.

JSW Infrastructure is committed to strengthening its ESG performance across the operational ecosystem by aligning its policies and practices with international standards.

As one of India’s leading business houses, JSW Group also has other business interests in sectors such as steel, energy, cement, paints, ecommerce, sports and venture capital.

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