Sunday, December 22, 2024

JSW Infrastructure Expands Strategic Footprint with Acquisition of Stake in PNP Port

JSW Infrastructure, a key entity within the JSW Group, has announced the acquisition of a stake in PNP Maritime Services (PNP Port) located in Raigad, Maharashtra. This strategic move was facilitated through JSW Dharamtar Port, a subsidiary of JSW Infrastructure, following a share-purchase agreement with SP Port Maintenance, a Shapoorji Pallonji Group Company.

The transaction involves the acquisition of 10,00,001 shares from SP Port Maintenance Pvt, with JSW setting a 15-day timeline to complete the process, contingent on the fulfillment of outlined conditions. The remaining equity in PNP Port will be retained by the Nrupal Patil family.

PNP Port, currently possessing a capacity of 5 million tonnes per annum (MTPA) with potential expansion to 19 MTPA, holds an estimated enterprise value of around ₹700 crore. JSW Infrastructure aims to progressively enhance and upgrade the port’s facilities and capacity.

Strategically positioned 20 nautical miles from Mumbai Anchorage, PNP Port operates multi-purpose jetties and boasts robust road and rail connections to industrial hubs in Maharashtra, Madhya Pradesh, Karnataka, and other states.

JSW’s acquisition of PNP Port is significant due to its favorable west coast location, offering direct access to major cargo centers like Mumbai, Pune, Palghar, Thane, Solapur, Bhiwandi, and Nasik. The port’s connectivity to the Central & Konkan Railway network aligns with JSW’s plan to streamline cargo operations in key industrial areas.

This move follows JSW Infrastructure’s trend of acquiring strategic ports through its subsidiaries. Recently, its subsidiary, Masad Infra Services Private Limited, entered a concession agreement with the Karnataka Maritime Board for the development of an all-weather, deep-water, greenfield port at Keni through a public-private partnership.

Moreover, JSW Infrastructure issued a corporate guarantee of $126 million to support its wholly owned subsidiary, JSW Terminal (Middle East) FZE, in acquiring shares in Marine Oil Terminal Corp. This aligns with JSW’s broader strategy of expanding its network and optimizing cargo operations in crucial industrial regions.

In November, JSW Infrastructure secured a letter of award for the development of the Keni greenfield port in Karnataka with a total cost of ₹4,119 crore and an initial capacity of 30 million tonnes per year.

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