Gautam Adani’s Mundra Port in Gujarat in contrast offered berths to ships on arrival, had massive storage space and great inland connectivity to the north-west consumer belt of India. Even though prices were high, consumers didn’t complain.
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When pitted against its peers, APSEZ’s performance looks pretty impressive. Against a CAGR of 23 per cent of Gujarat Pipavav Port and a negative growth of Essar Ports, APSEZ has grown at a CAGR of 31 per cent in the past five years. APSEZ has consistently generated return on equity of over 20 per cent since the time of its listing. By contrast, its competitors such as Essar Ports and Gujarat Pipavav Port are struggling to generate returns of over 13 per cent.
Adani Ports is also growing rapidly outside Mundra. Apart from Hazira and Dahej in Gujarat, other ports terminals in Goa, Kandla, Visakhapatnam, Ennore and Tuna Tekra will start making bigger contributions to profits. Adani Ports also recently gobbled up Dhamra Ports in Odisha for Rs 5,500 crore, and is on the prowl for more acquisitions in the south-east coast.
Another factor that will add to its coffers and cargo volume is its 8,481 hectares SEZ. The intention is to attract export-oriented industries to produce near the port, giving the company a constant source of cargo. Adani Ports was earlier expecting to achieve 200 million tonnes (MT) of cargo by 2020. It now expects to achieve 200 MT by 2017.
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