ICD Tumb
ICD TumbPhoto: Navkar Corporation

Adani Logistics Ltd acquires ICD Tumb from Navkar Corporation Ltd

Ahmedabad, August 16, 2022

Adani Logistics Ltd (ALL), a wholly owned subsidiary of Adani Ports and Special Economic Zone Ltd (APSEZ), today said it had signed a definitive agreement to acquire ICD Tumb (Vapi), one of the largest ICDs in India, from Navkar Corporation Ltd for an enterprise value of Rs 835 crore.

The deal comprises acquisition of the operational Inland Container Depot (ICD) with capacity to handle 0.5 million TEUs, a press release from Adani said.

"The associated 129 acres of land provides an additional expansion path to increase capacity and cargo in near future as additional industrial corridors and logistic parks get added along these DFC routes," it said.

ICD Tumb is locted at Tumb village in the Umbergaon taluka of Valsad district in Gujarat, three km off the National Highway 8 which links Mumbai and the Jawaharal Nehru Port in that city to New Delhi. It is also close to the Western Dedicated Freight Corridor that is coming up. It is about 230 km from Nhava Sheva Port and about 160 km from Hazira Port.

The Tumb ICD has a private freight terminal with four rail handling lines connected with Western DFC and has custom notified land and bonded warehouse facilities, the release said.

“Tumb is one of the largest ICDs in the country. Given its strategic positioning in the middle of one of the busiest industrial zones and access to the dedicated freight corridor allows it to meaningfully serve the vast hinterland with access to two of the busiest ports on both sides, Hazira & Nhava Sheva” said Karan Adani, CEO and Whole Time Director of APSEZ.

“In addition to cargo moving by rail being 5X greener than that moving by road, another prime benefit of the access to the DFC is the savings in average transit times that is expected to be 10 hours by rail versus 24 hours by road. This acquisition fits well with our transformation strategy towards becoming a transport utility as well as move us closer to our objective of providing economical door to door services to our customers. We are confident to grow the volumes at the ICD at high double digits as we build out a sustainable world class multi-modal supply chain solution for the nation," he said.

The release said acquisition, based on the land value and replacement cost of existing assets, is priced at an enterprise value of Rs 835 crore, implying an EV/EBITDA multiple of 7.8x (based on FY23(E) EBITDA).

The deal is subject to customary regulatory and lender’s approvals and is expected to close in Q2 FY23, the release added.

APSEZ is the largest port developer and operator in India with six strategically located ports and terminals on the west coast (Mundra, Dahej, Tuna and Hazira in Gujarat, Mormugao in Goa and Dighi in Maharashtra) and six on the east coast (Dhamra in Odisha, Gangavaram, Visakhapatnam and Krishnapatnam in Andhra Pradesh, and Kattupalli and Ennore in Tamilnadu). They represent 24% of the country's total port capacity, thus providing capabilities to handle vast amounts of cargo from both coastal areas and the hinterland. The company is also developing two transshipment ports at Vizhinjam, Kerala and Colombo, Sri Lanka.

Adani Logistics Limited (ALL) is the most diversified end-to-end integrated logistics service provider in India by creating Logistics Infrastructure, including Multimodal Logistics Parks, and complete rail solutions for Container, Liquid, Grain, Bulk and Auto with presence across all major markets.

ALL has developed and operates Multi-Modal Logistics Parks (MMLP) at Patli, Kishangarh, Kilaraipur, Malur, Mundra, Nagpur and Taloja. It operates 77 freight trains (42 container trains, 25 bulk trains, 7 agri trains and 3 auto trains), 800,000 sq ft of warehousing space, 5,000 + containers, 0.9 MMT of grain silos and a fleet of 285 own trucks.


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