Adani Ports Eyes Global Acquisitions, Advances ₹80,000 Crore Capex Plans.

Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private port operator, is evaluating international acquisitions, with a focus on key trade routes across South East Asia, West Asia, and Africa. The company is in early discussions for potential partnerships, emphasizing collaboration with strong local players.

Domestically, APSEZ has outlined an ambitious ₹80,000 crore capital expenditure plan over the next three years (FY25-FY28), nearly doubling its previous decade’s investment of ₹42,000 crore. The capex will be primarily funded through internal accruals, with some debt financing if needed.

“We are open to international expansion, mostly through partnerships. Some opportunities are being explored, but we remain cautious given the current geopolitical climate,” an APSEZ official stated. Currency fluctuations are also a key consideration for overseas acquisitions.

APSEZ’s existing international footprint includes operations in Haifa (Israel), Dar-es-Salaam (Tanzania), and soon-to-be-commissioned berths in Colombo (Sri Lanka).

For domestic expansion, APSEZ plans to invest ₹50,000 crore in developing and expanding ports, ₹25,000 crore in its logistics business, and ₹5,000 crore for maintenance. Key projects include container transshipment at Vizhinjam Port (Kerala) and capacity expansion at Krishnapatnam and Gangavaram ports.

The company aims to increase its cargo handling capacity from the current 633 million tonnes (mt) to 1,000 mt by 2030, targeting 800-850 mt in cargo volumes. Major brownfield expansions are underway at Mundra, Hazira, Dhamra, and Krishnapatnam ports.

Financially, APSEZ maintains a robust position with an annual EBITDA run rate of ₹18,000 crore. While internal accruals remain the primary funding source, the company may raise around ₹20,000 crore in debt if required, leveraging its AAA+ credit rating.

APSEZ is positioning itself as an integrated logistics solutions provider, combining port operations with transport and supply chain services. Consultancy firm Macquarie Equity Research expects strong cash flow generation due to APSEZ’s high proportion of sticky cargo and ongoing diversification.

As of Q3 FY25, APSEZ’s net debt-to-EBITDA ratio stands at 2.1x, reinforcing its financial stability as it embarks on aggressive domestic and international expansion.