Adani Ports acquires 49 per cent stake in Indian Oiltanking for Rs 1,050 crore

New Delhi:Adani Portsand Special Economic Zone Ltd (APSEZ) announced it has entered into an agreement for the acquisition of Oiltanking India GmbH’s 49.38 per cent equity stake inIndian Oiltanking Ltd(IOTL), a large developer and operator of liquid storage facilities.

This agreement also includes acquisition of an additional 10 per cent stake in IOT Utkal Energy Services Ltd, a 71.57 per cent subsidiary of IOTL. IOTL has six terminals in five states with a capacity of 2.4 million KL for storage of crude and finished petroleum products.

The owned facilities include Navghar terminal in Maharashtra, Raipur terminal in Chhattisgarh and Goa terminal. The BOOT terminal with Indian Oil is at Paradip in Odisha and O&M contracts with IOCL are at JNPT in Maharashtra and Dumad in Gujarat. The company also has a biogas plant of 15 TPD capacity in Tamil Nadu.

“With this acquisition, APSEZ’s oil storage capacity jumps 200% to 3.6 Mn KL, making it India’s largest third-party liquid storage company. This ties well with our ambition to become the largest transport utility globally,” saidKaran Adani, CEO and Whole Time Director of APSEZ.

He added the stake purchase is also aligned with the company’s strategy of diversifying the cargo mix with focus on products and services having higher realisation and margins.

IOTL recently signed a 25-year BOOT contract with Numaligarh Refinery for the construction, operation, and maintenance of 0.6 million KL crude storage tanks at the Paradip Port. It is also negotiating and bidding on other large projects, both at the existing facilities and new locations. IOTL’s revenue and EBITDA stood at Rs 526 crore and Rs 357 crore, respectively, in 2021-22.