24% of Indian ports’ managed by Adani, second-most after govt

As the Indian government aims to increase its port capacity by 300%, Adani Group is expanding its coastline presence as well. The group acquired its 15th port in India, recently solidifying the company’s dominance on both the east and west coasts.

The Union Minister for Ports, Shipping & Waterways (MoPSW) Sarbananda Sonowal,  said, 

“The country’s total port capacity will increase from the existing 2,600 MTPA (million tonnes per annum) to more than 10,000 MTPA in 2047,”

There is another growing monopoly for the Adani group. Recently, the Adani Group brought 95% –  Shapoorji Pallonji Group’s 56% and Orissa Stevedores Limited’s 39% – in the Gopalpur port, Odisha. Now, Adani group has more than 50% share, in terms of cargo handling, among the non-major ports (not operated by the Government) in the country. 

To achieve the above-mentioned target, the government aims to monetise the ports through PPP (public-private partnership). The government still manages 60% of India’s port capacity.

List of ports acquired by the Adani Group

• Mundra, Gujarat, 1998
• Dahej, Gujarat, 2010
• Hazira, Gujarat, 2012
• Mormugao, Goa 2013
• Acquired Dhamra from L&T and Tata, Odisha (2014); 
• Build Tuna Tekra terminal, Kandla Port 2015
• Acquired Kattupalli from L&T (2015); 
• Signed Ennore, Tamil Nadu (2018); 
• bagged Vizhinjam, Kerala (2019); 
• Acquired Krishnapatnam (2020); 
• Dighi, Maharashtra 2021 through India’s bankruptcy courts
• Acquired Gangavaram, Andhra Pradesh (2021)
• Karaikal port, 2023, through bankruptcy proceedings.
• Haldia, West Bengal 2022
• Acquired Gopalpur port, 2024

The group has another port in Haifa, Israel, with a 70% stake.

Adani Ports and Special Economic Zone Limited (APSEZ), a subsidiary of Adani Group, mentions the strengthening of its port infrastructure. The group has acquired six ports in the last ten years. Their cargo handling capacity has increased four times, as per an investigation from The Indian Express. The company’s growth has been 14% while the industry growth has been just 4%. Adani Group’s market share in the ports sector has increased to 24% from 9% in ten years, and the government’s share has fallen. As per The Indian Express report, Adani port outperforms in the key indicators of port efficiency like turnaround time. 

These minor ports are governed by state governments, and state maritime boards, hence aren’t regulated by central authorities. Therefore, private players like Adani Group can charge more for better services and infrastructure. Eventually, if the monopoly isn’t managed then the government would have little to no negotiation power. Is it a concern, yes. 

Exponential Growth, and Concerns

Amidst scrutiny and questions, the Adani Group has grown multi-fold since 2013. The group is the biggest private thermal power producer, managing some of the biggest airports in the country, and recently entered into the broadcast media business, among other things.

Mundra Port in Gujarat is the jewel in the crown of the company. The port is the biggest cargo handler, with 155 million tonnes in FY23, among other services. India’s first deep-sea port at Tajpur, West Bengal would also be developed by the group, investing more than 3 billion USD. As the company states, they want to acquire ports through an ‘inorganic approach’, with a “sustained focus on acquisitions at a deep discount value.” All this is happening in a sector which has long-gestation periods, and low margins. Furthermore, the US short-seller – Hindenburg– reports questioned the company’s methods for financial arrangements for its rapid expansion. 

A Bloomberg report emphasises greater scrutiny on companies with the potential to create a monopoly in the market. Adani ports could be one such utility. However, the JSW group is posing a challenge to the Adani group– not substantial but enough. All JSW Group’s nine assets combined have less capacity than Adani Group’s Mundra port, mentioned above. The JSW Group would wish to leverage the National Monetisation Pipeline and pose a formidable challenge against the rapidly growing Adani Group in a sector which is risk-prone.

Ports, and environmental concerns

The ports play a significant role in a nation’s economic growth, as they can export and import raw materials for mining. However, the expansion of ports is a challenge the government challenges. With geo-politics relationship solidifying, navigating expansion challenges yields substantial economic results. But, what environmental cost though? 

Adani Group’s Ennore port expansion has been news not for good reason. There have been concerns about the rapid expansion of India’s ports, and its impact on the fishing communities, and coastlines.

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