Dubai-based ports operator DP World has secured another significant investment from India amounting to about $300 million for a 22.5% stake in Hindustan Ports Private Limited (HPPL), a wholly-owned subsidiary of the Emirate logistics multinational.
The 22.5-billion rupee investment is the single biggest ever secured through the Master Fund of India’s National Investment and Infrastructure Fund (NIIF), and the second investment of its partnership with DP World.
Collectively, the NIIF has now invested about $500m in HPPL, one of India’s leading container terminal platforms operating five container terminals across India: two in Mumbai and one each in Mundra, Chennai and Cochin (Kochi).
HPPL’s five-million TEU capacity totals more than 20% of India’s national market share.
A statement issued by DP World said: “This investment from NIIF Master Fund extends the existing DP World and NIIF partnership, formed through the creation of Hindustan Infralog Private Limited (HIPL) in 2018.
“Since its inception, HIPL has made substantial investments in rail logistics, multimodal logistics parks, container freight stations, economic zones, cold-chain infrastructure, and contract logistics to create a market-leading integrated logistics platform.”
DP World emphasised that, “as the value chain becomes more integrated, significant growth opportunities exist across the entire Indian ports and logistics space, and both HIPL and HPPL are suitably placed to capture these opportunities.
“The primary capital raised through this transaction will aid in new infrastructure development, drive supply chain efficiencies, and support future growth initiatives of HPPL. The investment in this combined entity will improve cargo connectivity which will deliver cost efficiencies and an enhanced customer experience.”
Sultan Ahmed Bin Sulayem, DP World’s group chair and CEO, said: “The broadening of our partnership with NIIF to include our flagship India ports platform is a natural extension of our existing relationship and aligns both parties to focus on delivering end-to-end supply chain solutions. Since the beginning of this partnership with NIIF, we have made significant progress in building an inland logistics infrastructure network of great scale that complements our container ports platform. Notably, the opportunity landscape in India remains significant and this transaction will allow us to accelerate investment across ports and logistics to drive returns for our respective stakeholders.”
Sujoy Bose, managing director and CEO of the NIIF, said: “The deepening of our successful four-year partnership with DP World is a testament to the attractive opportunities in the Indian ports and logistics sector and the strategic vision and ongoing reforms under the PM Gati Shakti programme – India’s National Master Plan for integrated planning and project execution.
“The investment will enable NIIF’s domestic and international investors to have a meaningful exposure in the sector through a unique and scalable platform with a significant presence across sea-based container terminals and land-based container logistics infrastructure.”
