JSW Infrastructure Ltd, an arm of the publicly listed JSW Steel Ltd, has acquired the ports business of the Chennai-based Chettinad Group.
The move will allow JSW Infrastructure to own and operate a portfolio that includes a deep draft coal terminal and a bulk terminal at Kamarajar Port Ltd, as well as a coal and bulk commodity terminal at New Mangalore Port Trust, PTI reported.
JSW Infrastructure will invest more than Rs 1,000 crore (about $135 million) to acquire and modernise these assets, which have a combined cargo handling capacity of more than 17 million tonnes per annum (MTPA).
The acquisition is in line with the company’s larger strategy of achieving a capacity of 200 MTPA over the next few years, JSW Infrastructure managing director and chief executive officer Arun Maheshwari said.
“The successful acquisition of these port assets consolidates our strategic presence across south, east and west coasts. It allows us greater access to the hinterland trading hubs with promising growth potential,” he added.
The move will also provide business synergies with the company’s upcoming 30 MTPA coal export terminal at the Paradip port in Odisha. This asset is scheduled to begin operations during the first half of the next calendar year.
Per the company’s annual report for the 2019-20 financial year, it reported consolidated revenue from operations of Rs 1,143.14 crore with net profits of Rs 196.52 crore.