JSW Infrastructure, India’s second largest commercial port company and part of $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), located at Shahbaj, Raigad district, Maharashtra.
The acquisition values PNP Port at an enterprise value of around Rs 700 crore 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 and provide end-to-end logistics services near the cargo consumption and generation centres,” it said in a statement.
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“PNP port is expected to strengthen JSW Infrastructure’s position to provide hub and spoke model services to customers, thereby saving substantially in the logistics costs,” it said. 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 will allow the company to service growing share of third party customers in India and derive huge synergies with the existing ports and terminals.
The PNP Port is an operational port, connected with road and rail facilities, and servicing to various industries in the hinterland of Maharashtra, Madhya Pradesh and Karnataka.