Ahmedabad: India’s largest transport and logistics player Adani Ports and Special Economic Zone Limited (APSEZ) has announced the signing of a definitive share purchase agreement to acquire 100% of Jaypee Fertilizers and Industries Limited (JFIL).
The deal, valued at ₹1,500 crore, is a part of the corporate resolution plan of the debt laden Jaiprakash Associates Limited (JAL) and has been approved by the National Company Law Tribunal (NCLT) Allahabad bench on March 17.
Converting Fertilizer Land into Premium Freight Hubs
For APSEZ, the objective behind the ₹1,500 crore deployment remains the massive, high value real estate held by its subsidiary Kanpur Fertilizers and Chemicals Limited (KFCL). The company holds 243 acres of industrial and commercial land in Kanpur that APSEZ aims to use to develop a Multi Modal Logistics Park (MMLP) and an automated cold chain warehouse center.
Scaling Inland Warehousing Fourfold
For APSEZ, this acquisition offers it a long term business diversification opportunity, as the company looks to strengthen its place in India’s logistics infrastructure from a pure play marine port operator to an integrated, end to end global supply chain platform.
Currently, APSEZ operates 12 inland logistics parks, and this greenfield development would help it strengthen India’s goal of having 35 such parks to reduce logistics costs to under 10% of GDP. This would help support the expansion of demand from e-commerce, automotive, and industrial retail players across North India.
The Broader Deal
This ₹1,500 crore investment is part of a broader deal to buy out Jaiprakash Associates following its corporate resolution plans. Adani Power has separately signed a Share Purchase Agreement for 24% in Jaiprakash Power Ventures Limited (JVPL) for ₹2,993 crore, while it will also acquire Jaiprakash’s 1149% stake in the 180 MW thermal power plant in Churk, Uttar Pradesh.
