Samsara Newsletter

Week 12, 2021 (Mar 20 -Mar 26)

Policy & Economy News

In 2020, India saw venture capital investments worth US$ 10 billion: Report

Fitch upgrades India's FY22 GDP growth projection to 12.8%

Govt encouraging cold storage development: Minister

Business News - The India Boom Factor

Centre readies draft plan for district-wise export promotion

Bangladesh issues tender to buy 50,000 tonnes of rice

Global demand boost for Indian exporters

India's goods exports to stand at $290 bn in FY21, says Piyush Goyal

Shipping News

DGFT to be digitised with faceless, contactless, paperless virtual offices

Logistics News

Strong GDP growth in FY22 to drive logistics demand: Ind-Ra

3rd-party logistics shipments grew 70% in India in Q4 2020

Indian Port News

DBGT achieved the 2 million TEUs milestone in March 2021

Adani Ports to acquire additional 58.1% stake in Gangavaram Port

Policy & Economy News

In 2020, India saw venture capital investments worth US$ 10 billion: Report
IBEF - March 18 Top
According to a report, venture capital investments in India reached US$ 10 billion in 2020, and as many as 7,000 new start-ups were founded over the same period.

According to the Bain & Company's latest India Venture Capital report, consumer tech, SaaS, and fintech contribute to approximately 75% of VC (Venture Capital) investments by value, with consumer tech bringing the most funding.

According to the report, which was prepared in collaboration with the Indian Private Equity & Venture Capital Association (IVCA), COVID-19 had a massive impact on boosting digital trends, as evidenced by VC money flows and the emergence of various and digitally founded business strategies across sectors.

Total deal value stood at US$ 10 billion in 2020. The deal volume increased by 7% YoY, at ~ 810 VC deals in 2020 compared to 755 in 2019. Deal volume growth highlighted strong foundations for India's start-up ecosystem, with innovative products keeping pace with the challenges observed in 2020.

As per the report, India held its leading position as one of the top five start-up ecosystems in the world, with 7,000 new start-ups established in 2020.

It also stated that the country's start-up ecosystem is strong, with 12 more companies achieving 'unicorn' status in 2020, placing India's unicorn tribe at 37.

At present, ~ 9% of India's more than 110,000 start-ups are funded, indicating significant room for additional investment.

Mr. Sriwatsan Krishnan, Bain & Company partner and a co-author of the report, said, "2020 recorded US$ 10 billion in VC investments, and there were a few themes that play out differently, particularly in terms of smaller deals on average compared to the multiple mega-deals seen in 2019.”

The number of active VC funds in the country, which has been steadily increasing over the last four years, reached around 520 in 2020.

VC exists stood at US$ 1.3 billion in 2020. According to the report, one-third of the exit value came from EdTech and about 20% from food-tech, both of which recorded an increase in end-user adoption and funding activities in the pandemic.

Fitch upgrades India's FY22 GDP growth projection to 12.8%
CFO-India-March 24,2021 Top
Fitch Ratings has upgraded India's growth projection for FY22 to 12.8% from 11% estimated earlier on a stronger carryover effect, a looser fiscal stance and better virus containment, according to a report on the Economic Times website.

In its latest Global Economic Outlook (GEO), Fitch said the biggest revisions are for Turkey and India and that India's rebound in the second half of 2020 also took GDP back above its pre-pandemic level. However, it expects GDP growth to ease to 5.8% in FY23, a downward revision of -0.5pp since December

"Nevertheless, we expect the level of Indian GDP to remain well below our pre-pandemic forecast trajectory,” Fitch added, explaining that India's recovery from the depths of the lockdown-induced recession in June quarter has been swifter than it expected.

It said the GDP surpassed its pre-pandemic level in the December quarter, growing 0.4%, after contracting 7.3% in the previous quarter.

"The rapid pace of expansion at the end of 2020 was powered by falling virus cases and the gradual rollback of restrictions across states and Union territories,” it added.

High-frequency indicators point to a strong start to 2021, the rating agency said. However, the recent are up in new virus cases in some states has prompted it to expect milder growth in the June quarter.

"Moreover, the global auto chip shortage could temporarily diminish Indian industrial production gains in 1H21,” it said.

Fitch said the Union Budget for FY22 unveiled a fiscal stance more accommodative than it expected and spending is set to be increased substantially, notably infrastructure, healthcare, and military outlays.

GDP surpassed its pre-pandemic level in December quarter, growing 0.4 per cent year-on-year, after contracting 7.3 per cent in the previous quarter.

"Looser fiscal policy should support the short-term cyclical recovery, which along with stronger underlying growth momentum prompted us to nudge up our FY22 GDP growth forecast substantially, to 12.8%,” Fitch said.

Vaccination impact

The increase in inoculation to the most at-risk people should allow restrictions to be eased significantly towards end-2021 and in 2022, the rating agency said.

"This should further support services sector activity and consumption. Nevertheless, an impaired financial sector is likely to keep the provision of credit tight, limiting investment spending,” it said.

Fitch also said it no longer expects the Reserve Bank of India (RBI) to cut its policy rate, owing to a brighter short-term growth outlook and a more limited decline in inflation than it had forecast.

Govt encouraging cold storage development: Minister
Exim News Service: New Delhi, March 25 Top
In a detailed written presentation in the Lok Sabha this week, Union Minister for Agriculture and Farmers Welfare, Mr Narendra Singh Tomar, said that the government is implementing various schemes under which financial assistance is provided for setting up of cold storages for storage of agriculture produce, including perishable horticulture produce, throughout the country.

The Department of Agriculture Cooperation and Farmers Welfare (DAC&FW) is implementing the Mission for Integrated Development of Horticulture (MIDH), under which financial assistance is provided for various horticulture activities including setting up of cold storages. The component is demand/entrepreneur-driven, for which government assistance in the form of credit-linked back-ended subsidy is available at the rate of 35% of the project cost in general areas and at the rate of 50% of the project cost in hilly and scheduled areas.

Under MIDH, cold storages are sanctioned by State and Central level committees constituted for this purpose under the operational guidelines of MIDH. Cold storages up to a capacity of 5,000 MT are eligible for assistance under MIDH. The powers for sanction of projects up to project cost of Rs 500 lakh, including setting up of cold storages, have been delegated to State Level Executive Committee (SLEC). Projects with a project cost of more than Rs 500 lakh and up to a capacity of 5,000 MT are approved by the Empowered Monitoring Committee (EMC) of DAC&FW on recommendation of SLEC. For seeking assistance for setting up of cold storage under MIDH, the promoter is required to submit the proposal to the concerned State Horticulture Mission.

Besides, the National Horticulture Board (NHB) is implementing a scheme, namely, "Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages and Storages for Horticulture Products”. Under the scheme, credit-linked back-ended subsidy at the rate of 35% of the capital cost of the project in general areas and 50% in case of North East, Hilly States & Scheduled areas for construction/expansion/modernization of cold storage and CA storage of capacity above 5,000 MT and up to 10,000 MT is available. In case of the North East region, units with capacity above 1,000 MT are also eligible for assistance. The scheme is demand/entrepreneur-driven. As per Scheme Guidelines, the applicant has to make an online application to NHB for In-Principle Approval (IPA). After receipt of IPA, the applicant is required to get the Term Loan sanctioned from bank/financial institution. Thereafter, NHB issues Grant of Clearance to start the project. Upon completion of project using promoter's equity and bank term loan, the subsidy claim is to be submitted to NHB. After physical joint inspection of the project, subsidy claim is considered and approved by the Project Approval Committee of NHB. Thereafter, NHB subsidy is released in the subsidy reserve fund account of the lending bank/financial institution.

Further, the Ministry of Food Processing Industries (MOFPI) is implementing a Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure as one of the components of Pradhan Mantri Kisan Sampada Yojana with the objective of reducing post-harvest losses of horticulture and non-horticulture produce and providing remunerative price to farmers for their produce. Under the scheme, the Ministry provides financial assistance in the form of grant-in-aid at the rate of 35% for general areas and 50% for North East States, Himalayan States, ITDP areas and Islands for storage and transport infrastructure, and at the rate of 50% and 75% respectively for value addition and processing infrastructure subject to a maximum grant-in-aid of Rs 10 crore (INR 100 million)per project for setting up integrated cold chain projects including irradiation facility without any break from the farm gate to the consumer. The integrated cold chain and preservation infrastructure can be set up by individuals, groups of entrepreneurs, cooperative societies, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc. Standalone cold storages are not covered under the scheme. Those desiring to set up cold chain projects have to apply against EoI issued from time to time, it was pointed out.

Business News - The India Boom Factor

Centre readies draft plan for district-wise export promotion
India Seatrade News - March 23 Top
The government has readied a draft district-wise export promotion plan for 451 districts in the country after identifying products and services with export potential in 725 districts, Commerce Secretary Anoop Wadhawan said on Monday.

Aiming for double-digit export growth from 500 districts over 3-5 years, the Commerce Ministry has asked States to prepare an annual 'export ranking index' of districts on export competitiveness with the assistance of the Directorate General of Foreign Trade (DGFT).

While foreign trade constitutes 45% of India's GDP, most export promotion efforts are driven by the Centre.

The district-specific approach that perforce involves the States in identifying potential export sectors and the logistics bottlenecks to be fixed, was taken up after Prime Minister Narendra Modi pushed for each district to aim to be an export hub during his Independence Day address in 2019.

In the initial phase, products and services with export potential in each district have been identified and an institutional mechanism of State and District Export Promotion Committees (SEPC) are being created, with an action plan to grow exports from each district.

Draft District Export Action Plans have been prepared by regional DGFT authorities in 451 districts.

"Products/services with export potential have been identified in 725 districts across the country (including Agricultural & Toy clusters and GI products in these Districts),” the Ministry said.

"District Export Promotion Committees have been notified in the districts of all the States except West Bengal,” it added.

Bangladesh issues tender to buy 50,000 tonnes of rice
Exim News Service: Dhaka, March 21 Top
Due to depleted stocks and record prices after repeated flooding damaged its crop, Bangladesh's state grains buyer has issued another international tender to purchase 50,000 tonnes of rice. The deadline for submission of price offers is March 24, 2021, as per reports.

The new tender seeks price offers for non-basmati parboiled rice in CIF liner out terms, including some ship unloading costs, for shipment to the ports of Chattogram and Mongla. The rice can come from worldwide origins and shipment is required 40 days after contract award. Bangladesh has issued a series of rice tenders in recent months amid dwindling supplies and a surge in prices, the reports added.

Global demand boost for Indian exporters
India Seatrade News - March 22 Top
Higher international demand, particularly for engineering items, chemical substances and low-value life-style merchandise comparable to carpets, has made Indian exporters' order books enhance by nearly 40% in comparison with the pre-Covid-19 interval, with handicrafts, ceramic merchandise and cotton yarn/materials exhibiting indicators of additional strengthening amid a drop in new circumstances within the United States and regardless of one other wave of infections within the European Union.

"Our exporters' order books have improved by almost 40% compared to the pre-Covid-19 period,” stated Ajay Sahai, director-general, Federation of Indian Export Organisations (FIEO).

Attributing the rise to international demand for plastics, chemical substances, engineering items and low-value life-style merchandise comparable to machine made carpets and non-leather footwear, Sahai stated labour-intensive sectors comparable to handicrafts, ceramic merchandise and cotton yarn/materials too are exhibiting indicators of additional strengthening.

"There is a gradual restoration in international commerce which can have a positive influence on the export sector in India,” stated Engineering Exports Promotion Council of India chairman Mahesh Desai. Demand for Indian engineering objects from China, Singapore, Germany and Thailand has seen excessive double-digit progress, led by exports of iron and metal, and non-ferrous metals like copper, apart from auto elements, he stated.

The handicraft sector expects an export progress of about 30% within the ongoing quarter and outbound shipments may find yourself reaching the identical degree as in 2019-20, in line with the Export Promotion Council for Handicrafts (EPCH).

"The order book is agreeable but there is a 25-27% rise in prices of raw materials such as wood and metals, and labour costs,” stated EPCH govt director Rakesh Kumar. Business within the ongoing quarter could attain the identical degree because the corresponding quarter of 2019, led by furnishings, house and life-style merchandise whereas vogue jewelry section has but to see a pickup, he stated.

Kumar stated no new merchandise might be launched in 2020. "The orders are 70% of what used to be in the pre-pandemic times,” stated Rafeeque Ahmed, chairman of Chennai-based Farida Group, one in all India's largest shoe producers and exporters, which is a vendor to abroad companies comparable to Adidas, Clarks, Marks & Spencer, Debenhams and Bally Shoes.

Ahmed stated although there may be demand from the US due to flattening of Covid-19 circumstances, the typical order measurement has declined to 40-60,000 pairs of sneakers in a season from 50-70,000 pairs earlier.

Leather exports from India shrank 32.16% year-on-year within the April 2020-February 2021 interval whereas handicrafts contracted 8.49%.

Unlike the pre-Covid period, when orders would come months upfront, orders now are available at a brief time period and must be fulfilled quicker, making it tough to plan the enterprise, stated exporters. Moreover, consumers are ordering minimal portions of products to keep away from getting caught with stock, they stated.

India's exports between April 2020 and February 2021 amounted to $256.18 billion, down 12.23% year-on-year.

FIEO expects India's exports to the touch $285-290 billion in 2020-21, decrease than $314.3 billion within the earlier fiscal.

"The UK, EU and China are disturbed because of the pandemic and the order book has been impacted because of that. We expect our exports to decline 20-25% by the end of March,” stated Siddh Nath Singh, chairman, Carpet Export Promotion Council.

Carpet exports rose 3.16% year-on-year within the first eleven months of this fiscal. As per FIEO, rising exports from China has led to the scarcity of containers within the area as a lot of the empty containers can be found solely for exports from China.

That's as a result of the transport traces and container firms are being paid hefty premiums for bringing empty containers again to China, it stated.

India's goods exports to stand at $290 bn in FY21, says Piyush Goyal
India Seatrade News - March 27 Top
India's goods exports will stand at USD 290 billion for the financial year ending March, 7 per cent short of the shipments in the previous fiscal, Union Minister Piyush Goyal said on Friday.

However, the minister said this was "great” considering the country has bounced back so quickly in a challenging year.

India's goods exports stood at USD 313 billion in FY20.

"As against about USD 313 billion of goods exports last year, we will end the year with almost 93 per cent of that, USD 290 billion. Now isn't that great,” Goyal said while addressing the Times Network India Economic Conclave.

Asked about big foreign firms which have made investments in India in the past year, the commerce and industry minister said Apple and Samsung have invested on a large scale in the country and expanded their facilities.

Referring to the two firms, he said: "I believe they are looking at India as their prime production base to meet the needs of the world.”

He added that pharma companies are also looking at expanding their investments in India.

The Prime Minister left for Bangladesh on Friday on a two-day visit during which he will take part in a wide range of programmes aimed at furthering cooperation between the two countries.

Goyal further said it will be a "record year” in terms of FDI inflows for India, despite the pandemic and "the fact that all international statistics suggest that foreign investments across the world are going to significantly fall in the current months.”

Observing that India was amongst the "rare countries” which saw FDI growth in 2020, the minister said he has "absolutely no doubt it will be a record FDI”.

Asked about India's relations with Bangladesh vis-a-vis Bangladesh-China ties, he said India has been working relentlessly to build strong relations with all its neighbouring countries.

Goyal said India's ability to add more value to the products and services has helped it expand trade ties with countries like Bangladesh.

He said India's services sector has the confidence, adding that "we in government are also proposing several initiatives, some of which should be discussed during PM Modi's visit to Bangladesh.”

However, he added that India does not hold a grudge against any country for its engagement with anybody else and focuses only on what it can do with that country better.

Goyal, who is also the railways and consumer affairs minister, said the Indian Railways has seen the highest freight loading in its history every month since September 2020 till February 2021.

"When we close March 2021, despite the setback of first few months of the lockdown, we will be exceeding last year's loading in the Indian Railways in terms of freight and it will be the highest freight loading that Indian Railways has seen in its long history,” he said.

On the Bharat Bandh called by farmers” organisations on Friday to protest against the three farm laws, which included train blockade, Goyal said he has been monitoring the situation and in the last report sent to him, he saw that in the whole country some 60 odd trains were disrupted for 5 to 15 minutes.

The minister said this clearly shows that "farmers across the country are happy with these laws”, adding that the three farm laws do not take away anything from what was already existing and they are an added option given to the farming community.

Asked about the 'TRP scam', Goyal said the investigation will bring to light any wrongdoing and stringent action will be taken against the guilty.

Shipping News

DGFT to be digitised with faceless, contactless, paperless virtual offices
Exim News Service: New Delhi, March 23 Top
The Directorate-General of Foreign Trade (DGFT) will soon be completely digitised with the roll-out of newer IT systems in a phased manner, enabling virtual offices to be created that are faceless, contactless and paperless, according to Mr Anup Wadhawan, Commerce Secretary.

It was also pointed out that the Ministry is formulating a district export plan to boost shipments and the DGFT will assist States/UTs in preparing an annual Export Ranking Index of different districts to rank each one on its export competitiveness. This would provide for agile trade policy formulations that are more responsive to changing scenarios of international trade, a paper on electronic governance and trade facilitation reforms put together by the Commerce Department pointed out. An exporter or importer would not have to wait on DGFT for any business approval. DGFT would be implementing post-issuance audit systems for managing any risks for such a business-friendly, flexible system, the paper added, as per a report.

Logistics News

Strong GDP growth in FY22 to drive logistics demand: Ind-Ra
India Seatrade News - March 24 Top
Strong GDP growth in FY22 will drive logistics demand, India Ratings and Research said.

According to the agency, strong-to-moderate recovery is already being witnessed across various logistics sub-sectors.

Besides, commissioning of the Dedicated Freight Corridor could boost volumes and efficiencies across ports as well as inland container depot/container freight station players.

As per Ind-Ra report, major ports' year-on-year volume growth has been positive for the past three months, while private ports have also reported resilient volumes in 9MFY21.

"In FY22, Ind-Ra estimates an 8 per cent YoY improvement in volumes for India ports sector (major + private ports), post an estimated 4 per cent yoy decline in FY21.”

"The 8 per cent YoY rise will be led by private ports, which in the past five years have displayed a median multiplier (vs real GDP growth rate) of '1.4x', thus outperforming growth from major ports. Historically, India's ports volumes have closely followed GDP growth, with container growth coming in '2x' of overall cargo volumes.”

Besides, the report cited that domestic air travel demand, which has continued to recover in 2HFY21, is expected to strengthen in FY22, though the risk to this view arises from fresh waves of Covid-19 recently.

"Both corporate and domestic travel demand are already showing signs of revival, which has helped support load factors and yields, while cargo volumes are expected to rise amid stronger macroeconomic fundamentals and e-commerce push.”

"Ind-Ra forecasts domestic passenger numbers to rise 10 per cent in FY22 (over FY20) implying a GDP multiplier of '0.9x', lower than the '2.4x' (median estimate) for the FY15-FY20 period.”

In terms of inland container depots, the agency forecasted a healthy pickup in volumes even though competition remains intense and realisations remain soft.

"The reduced dwell time after the commissioning of 'Dedicated Freight Corridor' and increased double stacking volume will support higher operating efficiencies, which is likely to support EBITDA margins in FY22-FY23.”

"For warehouses, Goods and Services Tax-led consolidation and rationalisation of occupancy rates could continue in FY22.”

3rd-party logistics shipments grew 70% in India in Q4 2020
India Seatrade News - March 23 Top
As online shopping sees more adoption, the third-party logistics (3PL) shipments grew 70 per cent in the month of October-December 2020, contributing 45 per cent of the shipment volume for the e-tailing industry, a new report said on Monday.

The 3PL shipped 750 million, which was a growth of 450 million from the period of July-September 2020.

"The 3PL has tremendous headroom to grow in eGrocery and foodtech as it completes merely 10 per cent and 5 per cent in those respective sectors,” according to Bengaluru-based market intelligence firm RedSeer.

While 3PL has grown from 107 million shipments in July-September period in 2020, it has only grown by two million in the eGrocery space during the same period, which shows that it has a long way ahead.

Online retail in India has grown more than 3 times in the last four years and is only set to be bigger in the coming years.

"As customers become more aware and comfortable with online shopping, delivery experience will become a key parameter to retain and onboard customers, hence this report unveils some invaluable insights on this competitive market,” the report noted.

Platforms such as Xiaomi, Decathlon and Dunzo came out as frontrunners in their respective sectors in terms of high delivery experience satisfaction.

While Captive logistics have taken prominence, third-party logistics (3PL) now also plays a key role.

"However, the role of 3PL players differ from one vertical to another. While it contributes highly for digitally native brands (DNB) and other emerging brands, it is still low in the e-grocery and foodtech space,” the findings showed.

Owing to smaller scale, there is a definite need for partnerships with third party logistics platforms for last-mile fulfilment and with emergence of 'delivery' as a key factor for driving customer satisfaction, "it is imperative for these brands/platforms to provide best of the class delivery experience to drive the overall customer satisfaction”.

"Over the last one year, we have seen that while online shopping is seeing more adoption, delivery experience has become a key parameter to drive customer satisfaction,” the report said.

In order to understand how delivery experience differs from one vertical to another and how brands can improve their customer experience, ResSeer has launched 'Delivery Delight Index' in association with Shadowfax.

'Delivery Delight Index' has been developed after 9,000 consumer surveys covering 34 players across four types of platforms — e-tailing marketplaces, hyperlocal marketplaces, digitally native brands and traditional brands/retailers.

Indian Port News

DBGT achieved the 2 million TEUs milestone in March 2021
India Seatrade News - March 23 Top
Dakshin Bharat Gateway Terminal in the Tuticorin Port has announced that it achieved the milestone of completing a cumulative handling of 2 million TEUs in March 2021. This milestone was achieved in 21 months and handled 633 vessels in the process.

DBGT expressed sincere appreciation to the trade fraternity, customers, and employees who have been a part of this achievement. "Our achievement is gratifying and reflects the results of our relentless commitment towards accommodating growing requirements from our customers,” said a media release from the terminal.A small function was organized on 17.03.2021 inside the terminal premises with the key members from Tuticorin trade fraternity and DBGT employees.

"The Management takes pride in this achievement which stand as a testimony for the combined efforts of all its employees during these difficult times. DBGT is continuously striving to achieve improvement on overall terminal performance to serve the trade with more values surpassing the previously set performance benchmarks and marching towards the next milestone of hitting 3 million TEUs optimistically in a much shorter period when compared to the volume achieved at present,” added the release.

Adani Ports to acquire additional 58.1% stake in Gangavaram Port
India Seatrade News - March 24 Top
Adani Ports and Special Economic Zone (APSEZ) has announced it will acquire the 58.1% stake held by D.V.S. Raju and family in Gangavaram Port Limited (GPL) for ?3,604 crore (INR 36.04 billion). The deal is subject to regulatory approvals.

Earlier this month, APSEZ had announced the acquisition of Warburg Pincus's 31.5% stake in GPL. Together with this acquisition, APSEZ will have 89.6% stake in GPL, which has its port operations in Andhra Pradesh.

Located close to the Vizag Port, GPL is the second largest non-major port in Andhra Pradesh with a 64-MMT capacity and established under concession from the Government of Andhra Pradesh (GoAP), which extends till 2059.

It is an all-weather, deep-water, multi-purpose port capable of handling fully laden super cape size vessels of up to 200,000 DWT.

Currently, GPL operates nine berths and has free hold land of around 1,800 acres. With a master plan capacity for 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth, APSEZ said in a statement.

GPL handles a diverse mix of dry and bulk commodities including coal, iron ore, fertilizer, limestone, bauxite, sugar, alumina, and steel. GPL is the gateway port for a hinterland spread over eight States across eastern, southern and central India, it added.

"GPL will benefit from APSEZ's pan-India footprint, logistics integration, customer-centric philosophy, operational efficiencies and strong balance sheet to deliver a combination of high growth by enhancing market share and add additional cargo types and improved margins and returns,” it said.

In FY20, GPL had a cargo volume of 34.5 MMT, revenue of ?1,082 crore (INR 10.8 billion), EBITDA of ?634 crore (INR 6.3 billion) (59% margin) and PAT of ?516 crore (INR 5.16 BILLION)

GPL is debt-free, with a cash balance of over ?500 crore (INR 5 billion).

The company has a paid-up share capital of 51.7 crore (INR 517 million) shares, of which 58.1% is owned by Mr. Raju and family (promoter) and 10.4% by GoAP. The balance 31.5%, which was with Warburg Pincus, has been sold to APSEZ.

'Tremendous addition'

Karan Adani, CEO and Whole Time Director of APSEZ, said, "The acquisition of GPL is a further augmentation of our vision of capitalising on an expanded logistics network effect that generates greater value as it expands.”

"Every additional node that we are able to add to our network allows us to deliver a greater level of integrated and enhanced solutions to our customers. In this context, GPL is a tremendous addition to our portfolio,” he said.

"The associated hinterland we will now be able to tap into is one of the fastest growing in the eastern region, and with the logistic synergies APSEZ brings to the table, GPL has a potential to become a 250 MMT port. This will undoubtedly help accelerate the industrialisation of A.P.,” Mr. Adani added.

"The location of Gangavaram in the north of A.P. is a strategic complement to our recent acquisition of Port of Krishnapatnam that serves the south of A.P.,” he further said.

This is the second port acquisition in Andhra Pradesh by the Gujarat-based Adani group after it bought a controlling stake in Krishnapatnam Port for ?12,000 crore (INR 120 billion). It is also developing a transshipment port at Vizhinjam, Kerala.