JSW Infrastructure will purchase a majority stake in PNP Port

5 Dec 2023 , 10:29 AM

JSW Infrastructure said on Monday that it will pay Rs 270 crore in cash to Shapoorji Pallonji (SP) Group to purchase a majority stake in PNP Maritime Services (PNP Port).

About 20 nautical miles from Mumbai Anchorage, in the Shahbaj, Raigad district of Maharashtra, PNP Port runs multipurpose jetties.

A deal has been inked by JSW Dharamtar Port, a wholly-owned subsidiary of JSW Infrastructure, to buy 50% of PNP Maritime Services, which is currently controlled by SP Port Maintenance, a business owned by the Shapoorji Pallonji group.

According to a news release from the firm, PNP Maritime Services Port has an enterprise value of about Rs 700 crore as a result of the transaction. The Mumbai Anchorage is roughly 20 nautical miles or 37 kilometres away from the 5 million tonnes per annum (MTPA).

According to the corporation, the PNP Port is anticipated to improve its ability to offer its clients hub-and-spoke model logistics services, which may result in significant cost savings.

JSW Infrastructure plans to gradually increase the PNP Port’s capacity from its present 5 MTPA to 19 MTPA by upgrading the port’s infrastructure.

‘JSW Infrastructure has acquired a strategic asset in PNP Port. It would enable the business to service an increasing proportion of third-party clients in India and create significant synergies with our current terminals and ports,’ the company said in a statement.

‘At PNP Port, development of port-based industries will be a key focus area and service to multipurpose cargo of bulk, container, liquid etc.’

According to the corporation, the port is well situated on the west coast of India and offers easy access to major freight hubs including Mumbai, Pune, Palghar, Thane, Pune, Solapur, Bhiwandi, and Nasik.

It has a road connection to the Mumbai-Goa Highway as well as connections to the Central and Konkan Railway networks.

JSW Infrastructure’s shares fell 1.07% to end at Rs 217.55 on Monday, despite notable gains in the broader market. By the end of the session, the Sensex was up 2.05%.

JSW Infrastructure is a division of the JSW Group, which also owns companies in the steel, cement, and paint industries. Through an investment in SAIC’s Indian division, the company has also entered the automotive industry. Early October saw the company’s market debut.

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