JSW Infra Acquires Majority Stake in PNP Port from Shapoorji Pallonji Group

JSW Infrastructure, India’s second-largest commercial port company and a key player in the JSW Group, has entered into an agreement to acquire a majority stake of more than 50% in PNP Maritime Services (PNP Port) from the Shapoorji Pallonji group for a sum of Rs. 270 crore. The acquisition, executed through a subsidiary, values PNP Port at approximately Rs. 700 crore.

PNP Port, located at Shahbaj in the Raigad district of Maharashtra, operates multi-purpose jetties and currently boasts a capacity of 5 million tonnes per annum (MTPA), with plans for potential expansion to 19 MTPA. In the fiscal year 2023, the port reported revenues of Rs. 211.6 crore.

The strategic acquisition aligns with JSW Infrastructure’s larger vision to explore both organic and inorganic growth opportunities, facilitating end-to-end logistics services in proximity to cargo consumption and generation centers. The move is expected to enhance JSW Infrastructure’s ability to provide hub-and-spoke model services, resulting in substantial savings in logistics costs.

The acquisition positions JSW Infrastructure to cater to an expanding share of third-party customers in India, capitalizing on synergies with existing ports and terminals. Additionally, it is anticipated to align with the central government’s Maritime Vision by facilitating cargo movement through the Rail-Sea-Rail route and coastal cargo operations.

JSW Infrastructure intends to upgrade the facilities at PNP Port and expand its capacity, leveraging waterways and existing railway infrastructure to enhance last-mile connectivity synergies. The move reflects the company's commitment to strategic development and efficient logistics solutions.

PNP Port, under a 30-year license agreement with the Maharashtra Maritime Board (MMB) since 1999, engages in developing, operating, and managing cargo handling facilities at Dharamtar for both import and export activities. In 2012, the port executed a deed of lease for the development of a multi-purpose jetty, further enhancing its waterfront area.

With strategic rail and road connections to industries in Maharashtra, Madhya Pradesh, and Karnataka, PNP Port holds a significant locational advantage on the West Coast of India. Its direct access to major cargo centers such as Mumbai, Pune, Palghar, Thane, Solapur, Bhiwandi, and Nasik positions it strategically for continued growth and efficiency in cargo handling operations.

HBL