Adani Ports and Special Economic Zone (APSEZ) have closed a transaction with L&T Infrastructure Development Projects Limited and Tata Steel Limited to acquire 100% stake in the Dhamra Port Company Limited (DPCL) at an enterprise value (including debt) of 55 billion rupees (US$940 million).

The equity was valued at between 20 billion and 22 billion rupees (US$332.6 - US$365.9 million).

The Dhamra port is a deep draft, all weather multi-user port located on the East Coast of India in the state of Odisha. The port commenced operations in May 2011 and handled a total cargo of 14.3 million tons in FY14. The port has two fully mechanized existing berths, 63 kilometers of a private rail line connecting the Bhadrak station to the main trunk line and has already received environmental clearance for the development of 12 additional berths.

Following the acquisition, the 2nd phase of development will be initiated within 90 days and completion targeted in 30 months. This continued expansion will allow the Dhamra port exceed 100 million tons of cargo capacity by the year 2020 and therefore allow Adani Ports to fulfill its stated vision of becoming a 200 million metric tons ports business well before the year 2020.

The combination of the naturally protected all weather port, its deep draft with the ability to berth cape size vessels, access to the massive potential in its hinterland, and proximity to the richest mineral wealth in the country is unique.

Adani said that those facts coupled with Adani's management capacity and experience should make the Dhamra port the fastest growing port in the nation.