JSW Infrastructure completes acquisition of Chettinad Group’s port business for over Rs 10 billion

JSW Infrastructure Limited has completed the acquisition of the Chettinad Group’s port business. This acquisition allows JSW Infrastructure ownership and operational control of a deep draught international coal terminal and a bulk terminal at Kamarajar port and a coal and bulk commodity terminal at New Mangalore port. JSW Infrastructure is investing more than Rs 10 billion to acquire as well as modernise these port assets which have a combined cargo handling capacity of 17 million tonnes per annum (mtpa).

Commenting on the development Arun Maheshwari, Joint Managing Director and Chief Executive Officer of JSW Infrastructure said, “The successful acquisition of the port assets consolidates JSW’s strategic presence across Southeast and West coast of India. It allows JSW greater access to hinterland trading hubs with promising growth potential. The newly acquired terminals will have business synergies with JSW’s upcoming 30 mtpa coal export terminal at Paradip port which is scheduled to commence operations during the first half of 2021.”

According to Devki Nandan, Senior Vice President and Head, Mergers and Acquisitions, “The newly acquired terminals are strategic assets for JSW Infrastructure. Their addition enables JSW to service higher volume of third-party customer cargo. The company intends to modernise these terminals to further enhance their operational efficiency. This acquisition will immensely benefit all the stakeholders through better efficiency, reduced costs and a world-class customer service experience”.

About Kamarajar port

Kamarajar port is a landlord port and is characterised by its mixed public-private orientation. Under this model, the port authority acts as a regulatory body and as landlord, while port operations are carried out by private companies. During 2019-20, all the terminals at the port handled 31.75 mtpa of cargo traffic. The port is expected to increase its cargo traffic substantially over the next few years.

About New Mangalore port

New Mangalore port is an all-weather, lagoo-type port situated at Panambur, Mangalore in Karnataka. It is one of the major ports that contribute significantly to the economic development of Karnataka. Over the past few years, New Mangalore port has recorded substantial growth in cargo traffic. During 2019-20, it handled over 39.1 mtpa of cargo. Moreover, container traffic at the port has been growing at a compound annual growth rate of 15 per cent since 2013 as compared to the overall Indian container traffic growth of 7.52 per cent.

About JSW Infrastructure

JSW Infrastructure Limited is one of the leading private sector infrastructure companies in India and a part of the $12 billion JSW Group. The company operates environment-friendly, socially sustainable world-class port facilities in India and overseas. It aims to expand its cargo handling capacity to 200 mtpa over the next couple of years through greenfield and brownfield expansions. It is also scaling up its capabilities to improve resource efficiency and extend its geographical reach to boost local trade and commerce.

For further information, contact Frederick Castro at 09920665176 or frederick.castro@jsw.in, or Mithun Roy at 09819000967 or mithun.roy@jsw.in

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