JSW Infrastructure to buy majority stake in PNP Port for ₹270 crore
JSW Infrastructure said Monday that it will acquire a majority stake in PNP Maritime Services (PNP Port) from Shapoorji Pallonji (SP) Group for a cash payment of ₹270 crore.
PNP Port operates multi-purpose jetties at Shahbaj, Raigad district of Maharashtra, about 20 nautical miles from Mumbai Anchorage.
JSW Dharamtar Port, a wholly-owned subsidiary of JSW Infrastructure, has signed an agreement to purchase 50% of PNP Maritime Services, which is held by SP Port Maintenance, a Shapoorji Pallonji group company.
The acquisition values PNP Maritime Services Port at an enterprise value of around ₹700 crore, the company said in a press statement. The 5 million tonnes per annum (MTPA) is about 20 nautical miles or 37 kilometres from Mumbai Anchorage.
The company said that the PNP Port is expected to strengthen its position to provide hub-and-spoke model logistics services to its customers, which can potentially save substantial 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.
«The acquisition of PNP Port is a strategic asset for JSW Infrastructure.
It will allow the company to service growing share of third party customers in India and derive huge synergies with our existing ports and terminals,» the company said in a statement.
«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 port is strategically located on India's west coast and has direct access to large cargo centres such as Mumbai, Pune, Palghar, Thane, Pune, Solapur, Bhiwandi and Nasik, the company said.
