Adani Group Acquires 100% Stake in India’s Largest Marine Service Company Ocean Sparkle
The Adani Harbour Services Ltd (TAHSL), a subsidiary of Adani Ports and Special Economic Zone Ltd (APSEZ), has entered into an agreement to acquire a 100 percent stake in Ocean Sparkle Ltd (OSL), India’s top third-party marine services provider. Towage, pilotage, and dredging are some of the company’s main activities.
OSL is a market leader, with a fleet of 94 owned vessels and 13 owned by other parties. OSL has a market capitalization of Rs1,700 crore and has Rs300 crore in cash on hand. Mr. P Jairaj Kumar, who will continue as Chairman of the OSL board, founded the company in 1995 with a group of marine technocrats, with Mr. P Jairaj Kumar as Chairman and MD.
“Given the synergies of OSL and Adani Harbour Services, the consolidated business is likely to double in five years with improved margins, thereby creating significant value for APSEZ’s shareholders.” said Karan Adani, CEO and Whole-time Director, APSEZ. “This acquisition not only provides APSEZ a significant share of India’s marine services market but also provides us a platform for building presence in other countries, thereby facilitating APSEZ’s journey towards becoming the largest port operator globally by 2030 and largest integrated transport utility in India,”OSL has long-standing relationships with its existing clients, with contracts ranging from 5 to 20 years (average length of contracts is ~7 years).
Furthermore, the contracts are on a Take or Pay (TOPA) basis, ensuring OSL’s business model’s stability. All of India’s major ports, 15 minor ports, and three LNG terminals are served by the company. OSL has established and deployed a workforce of 1,800 people across India over the years. Through its activities in Oman, Saudi Arabia, Sri Lanka, Qatar, Yemen, and Africa, the company has extensive experience in worldwide maritime servicing.