Feb 22, 2019

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Editor’s Synopsis

  • Adani Logistics Ltd. (“ALL”) to acquire Adani Agri Logistics Limited (“AALL”) - India’s largest player with 45% market share in modern agri storage infrastructure
  • AALL will add 28 locations and 7 trains to Adani Logistics network
  • Combined business EBITDA to immediately double to ~INR 200 Crs post acquisition
  • AALL is a subsidiary of Adani Enterprises Limited (“AEL”) and the transaction is proposed at an enterprise value of INR 1,662 Crs 

Ahmedabad, February, 23rd, 2019:  Adani Logistics Limited (“ALL”), a 100% subsidiary of Adani Ports and SEZ Limited (“APSEZ”), today announced its intent to acquire Adani Agri Logistics Limited (“AALL”) from Adani Enterprises Limited. The acquisition will be an all cash deal and is expected to be completed by March, 2019. 

About Adani Agri Logistics Limited: - (AALL) 
AALL is the pioneer in providing efficient storage through silos and transportation by rail. The Company has 1.58 MMT fully contracted capacity with modern agri infrastructure of 7 trains, 28 storage / handling infrastructure facilities across 10 States. 
AALL has long term (20-30 year) guaranteed offtake contracts on use or pay basis with 70%+ EBITDA margins.  
AALL targets to double infrastructure capacity in the next 3 years and tap the new 12.5 MMT infrastructure market as well as opportunities such as conventional storage conversion, among others. 
Combined Business would also benefit from leveraging significant opportunity for handling multiple commodities and transportation.  

Mr. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “We are excited to share that today we have announced an acquisition of Adani Agri Logistics Limited. AALL is the largest agri products logistics player with long term contracts and strong margins. This Acquisition of AALL brings us one step closer towards our vision to be the leader in providing integrated logistics services in India and focus on developing hinterland logistics.  It enables us to expand our total addressable market, enhance our network and create a value chain to handle all types of cargo in India.”   


About Adani Ports and Special Economic Zone 
Adani Ports and Special Economic Zone (APSEZ), a part of globally-diversified Adani Group, is the largest port developer and operator in India. In less than two decades, the company has built a formidable presence in port infrastructure and services. APSEZ’s 10 strategically located ports and terminals — Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai — represent 24% of the country's total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland. The company is also developing a transhipment port at Vizhinjam, Kerala.