Adani Plans to Expand Its Vessel Fleet and Extend Control Over the Port Sector
Adani Ports and Special Economic Zone, which is currently the biggest private port operator in India, has mentioned that it has plans to acquire 80% stakes in the Dubai-based Astro Offshore which is an offshore supply vessel company. The deal will be undertaken for 185 million USD or INR 1,551 crore. The main aim behind this acquisition is to expand its fleet and increase its earnings in the port sector. The group also aims to become one of the biggest marine operators in due course because of this it has been taking up multiple extraordinary ventures in the port sector over a short span of time. With this new acquisition, Adani Monopoly will also continue to exist in the port sector.
Why Acquire Astro Offshore?
Ashwani Gupta, the CEO of APSEZ has also mentioned that Astro would add 26 offshore support vessels (OSVs) to the Adani Group’s current fleet which comprises 142 tugs and dredgers. This will make it to 168 ships in total. It will also give the Adani Group access to several significant customers in the region. That way, the group will be able to enhance its presence in the Indian subcontinent, Arabian Gulf, and Far East Asia. This will help the Adani Group further expand its business horizons and earn extraordinary profitability from its business.
Astro Offshore is a global offshore support vessel (OSV) operator in West Asia, India, Far East Asia, and Africa. It handles the construction and management of vessels. It also has a number of global clients under its umbrella. Astro’s acquisition will pave the path for the Adani Group to become one of the biggest marine operators. It will also be able to build Adani Monopoly in the port and earn excellent revenue from its business.
The Increased Control Over the Port Sector
The Adani Group has always been deeply interested in the port sector of India. Time and again, the business group has taken multiple steps each of which is aimed at ensuring that the company’s port operations experience an extraordinary boost. In fact, the Adani Group started its business operations in the port sector. Its first venture in this particular sector has been the Mundra Port. By taking up new ports under its control, the Adani Group will be able to further extend its international boundaries.
Currently, the Adani Group has turned its attention towards expanding its fleet and that can easily be made possible with the acquisition of Astro Shipping. Ashwini Gupta has specifically mentioned that the Adani Group aims to globally expand itself and revitalise the maritime trade route between India, South East Asia, East Africa, the Middle East, and North Africa. The aim to expand its fleet strongly aligns with this strategy. It will also help the company to build an excellent reputation for itself in the global ports sector.
The International Ventures
The Adani Group, in collaboration with Gadot Chemicals, had earlier acquired the Haifa Port in Israel for 1.18 billion dollars. Currently, the Adani Group holds a 70% stake in the company in the Far East. The Adani Group is also planning to build a new port in Da Nang Vietnam. They have already received approval from the government. The company also operates the Colombo port in Sri Lanka. It also has elaborate plans to acquire control over various crucial ports in different corners of the world. This strategy strongly aligns with the company’s goals of achieving Adani Monopoly in the port sector.
Conclusion
APSEZ has elaborate plans to expand its operations in multiple segments of the maritime sector. Apart from container cargo handling, the group has elaborate plans to diversify its bulk cargo, liquid cargo, and specialised cargo handling capacity. The company has also been deeply interested in making investments in the port infrastructure segment. With that in mind, it has been building new terminals and modernizing the existing facilities. The company has also made use of technology in its various ports. This has ensured that the port operations get carried out smoothly. The conglomerate has also been able to strengthen India’s trade relationships with other countries because of its extensive ventures in the port sector. In the upcoming years, we will get to witness the Adani Group take up more such incredible ventures in the port sector, which will lead it to the path of success.
