Adani Ports and Special Economic Zone (APSEZ) logistics subsidiary, Adani Logistics Limited has acquired inland container depot (ICD) Tumb at Vapi in South Gujarat from Navkar Corporation Ltd.
The Tumb ICD, located between Hazira port (160 km) and Nhava Sheva port (230 km) along the Western DFC has capacity of 0.5 million TEUs and will serve several GIDCs and MIDCs.
Based on the land value and asset replacement costs, the transaction is priced at ₹835 crore, implied Enterprise Value/ multiple of 7.8x FY23 EBITDA (E), the company said in a statement.
The acquisition is in line with the strategy to build integrated transport utility and pan-India logistics infrastructure as Tumb adds to the existing seven multimodal logistics parks in the Adani Logistics portfolio.
Besides the ICD, the deal comprises acquisition associated 129 acres of land providing additional expansion path to increase capacity and cargo in near future as additional industrial corridors and logistic parks get added along these DFC routes, the company said.
The Tumb ICD has a private freight terminal with four rail handling lines connected with Western DFC and custom notified land & bonded warehouse facilities.
“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,” he said.
The deal is subject to regulatory and lender’s approvals and is expected to close in Q2 Fiscal 2022-23, the company said.