JSW apportions ₹6,000 crore for acquisitions in port sector

The firm is exploring the acquisition of a stake in a government-owned port slated for privatization, a move aimed at enhancing port connectivity, as senior executive of the company said.

“We have one of the strongest balance sheets in this infrastructure sector of this size and scale. So, the headroom is good enough to expand much more aggressively, provided the opportunity is value accretive…Today, our net debt/Ebitda is virtually zero and with the kind of Ebitda (earnings before interest, taxes, depreciation, and amortization) we have, I can safely spend ₹5,000-6,000 crore without blinking our eyes,” said Arun Maheswari, joint managing director and chief executive of JSW Infra.

JSW Group is evaluating all privatization prospects offered by the government, including the ambitious trans-shipment port project at Galathea Bay in the Great Nicobar Island.

“The government still owns about 50% of the port capacities in India, which throws a big opportunity for private players like us who are big in terminal operations and Nicobar is one of them and we are assessing it. Once it comes into the block for bidding or offers, that time we will assess and we will see what all and how we can participate in that,” Maheshwari added.

The proposed Andaman and Nicobar port, designed to handle 16 million containers annually, is set for a phased development. With an initial phase costing ₹18,000 crore and aiming for a 2028 completion, it will start with a capacity to manage four million containers. The strategic location near major trade routes positions it as a competitor to existing trans-shipment hubs like Singapore, Klang, and Colombo.

Adani Ports is the largest port operator in the country and is about three and a half times larger than JSW Infra with a capacity to handle to 580 million tonnes per annum, compared to JSW Infra’s 170 million tonnes.

Following the government’s announcement in the interim budget, presented on 1 February, to implement an economic corridor scheme to improve port connectivity, along with the enactment of the Major Ports Authority Bill, 2020, there’s a renewed push towards privatizing 12 state-owned ports.

JSW Infra’s net profit for the December quarter doubled year-on-year to ₹250.66 crore, driven by increased cargo volumes and elevated tariffs. Revenue during the period rose 17.85% to hit ₹940.11 crore.