Adani Ports takes 49% stake in Indian Oiltanking for Rs 1,050cr

Adani Ports and Special Economic Zone (APSEZ), an Indian transport utility, has agreed to acquire a 49.38% equity stake in Indian Oiltanking (IOTL) from Oiltanking India GmbH for Rs 1,050 Cr, in a bid to become India’s largest third-party liquid tank storage player.

The agreement also facilitates the acquisition of an additional stake of 10% in IOT Utkal Energy Services in which Indian Oiltanking has a 71.57% stake.

Indian Oiltanking is a developer and operator of liquid storage facilities, and has developed a network of six terminals in five Indian states. The liquid storage terminals have a total capacity of 2.4 Mn KL for storing crude and finished petroleum products.

In addition, the company has a biogas facility with a capacity of 15 tonnes per day (TPD) in Namakkal, Tamil Nadu.

Karan Adani — Adani Ports and Special Economic Zone CEO and Whole Time Director said: “With this acquisition, APSEZ’s oil storage capacity jumps 200% to 3.6 Mn KL, making it India’s largest third-party liquid storage company.

“This stake purchase is also well aligned with our strategy of diversifying the cargo mix with focus on products and services having higher realisation and margins.

“The deal will further strengthen our strategic partnership with IOCL [ Indian Oil Corporation Ltd], a key stakeholder and India’s largest refiner and customer of oil storage tanks.”

Indian Oiltanking-owned facilities include Navghar terminal in Maharashtra, Raipur terminal in Chhattisgarh, and Goa terminal.

The BOOT terminal with IOCL is at Paradip, Odisha and operations and maintenance (O&M) contracts with IOCL are at JNPT, Maharashtra and Dumad, Gujarat.

Indian Oiltanking has recently entered into a 25-year BOOT contract with Numaligarh Refinery to construct, operate, and maintain 0.6 Mn KL crude storage tanks at the Paradip Port.

In the financial year 2022, Indian Oiltanking reported a revenue of INR 526 crores and an EBITDA of INR 357 crores.