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Adani Ports buys 49.38% stake in Indian Oiltanking for Rs 1,050 crore 

Adani Ports buys 49.38% stake in Indian Oiltanking for Rs 1,050 crore 

The agreement also includes the acquisition of an additional 10 per cent equity stake in IOT Utkal Energy Services, a 71.57 per cent subsidiary of IOTL, the company said.

Adani Ports CEO and Whole Time Director Karan Adani said that with this acquisition, the company's oil storage capacity jumps 200 per cent to 3.6 million kilolitres, making it India’s largest third-party liquid storage company. Adani Ports CEO and Whole Time Director Karan Adani said that with this acquisition, the company's oil storage capacity jumps 200 per cent to 3.6 million kilolitres, making it India’s largest third-party liquid storage company.

Billionaire Gautam Adani's Adani Ports on Wednesday said that it has signed agreements to acquire a 49.38 per cent equity stake for Rs 1,050 crore in Indian Oiltanking Ltd (IOTL) -  one of the country's largest developer and operator of liquid storage facilities.

The agreement also includes the acquisition of an additional 10 per cent equity stake in IOT Utkal Energy Services, a 71.57 per cent subsidiary of IOTL, the company said.

Over the last 26 years, IOTL has built a network of six terminals across five states for the storage of crude and finished petroleum products.

The owned facilities include Navghar terminal in Maharashtra, Raipur terminal in Chhattisgarh and Goa terminal.

The BOOT terminal with Indian Oil Corporation Ltd (IOCL) is at Paradip (Odisha) and operations and maintenance contracts with IOCL are at JNPT (Maharashtra) and Dumad (Gujarat).

The company also has a biogas plant of 15 ton per day capacity in Namakkal (Tamil Nadu).

Adani Ports CEO and Whole Time Director Karan Adani said that with this acquisition, the company's oil storage capacity jumps 200 per cent to 3.6 million kilolitres, making it India’s largest third-party liquid storage company. "This ties well with our ambition to become the largest transport utility globally,” he said.

"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, a key stakeholder and India’s largest refiner and customer of oil storage tanks,” Adani said.

According to the statement, the IOTL is on a growth spree given the increasing demand for oil products in the country. The company recently signed a 25-year BOOT contract with Numaligarh Refinery Ltd for the construction, operation, and maintenance of 0.6 million kilolitres of crude storage tanks at the Paradip Port.

Besides, the company is also negotiating/bidding on various other large projects, both at existing facilities and new locations.  

Published on: Nov 09, 2022, 7:50 PM IST
Posted by: Saurabh Sharma, Nov 09, 2022, 7:14 PM IST
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