Acquisition is the new cool for Gautam Adani

As per the Forbes list, Gautam Adani is the fourth richest person in the world. He has proved to be a pragmatic investor who crystal gazes at the future correctly. Off late, he is working on a strategy known as the Self-seller and self-consumer model. Through this effective strategy, he has rectified the earlier bottlenecks of thinking in silos. With every new acquisition he is strengthening and coupling various arms from logistics to distribution. The latest acquisition has motivated people to call him “The King of acquisitions”.

Strategic acquisition of ICD Tumb

On 16th of August, Adani Logistics Ltd (ALL) issued a statement informing that it has acquired ICD Tumb (Vapi) from Navkar Corporation. In the statement, it said that ALL has signed a definitive agreement to acquire ICD Tumb (Vapi) from Navkar Corporation for Rs 835 crore.

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The statement added that the deal comprises the acquisition of the operational ICD, with a capacity to handle 0.5 million TEUs (twenty-foot equivalent unit). The associated 129 acres of land has cleared the path for port’s future expansion. With this, it has vast scope to increase its capacity and cargo.

In the near future, the nation will get additional industrial corridors and logistic parks along these Dedicated Freight Corridor routes (DFC). These DFCs are being developed at a war footing to cut down logistics costs.

The company said the acquisition is in line with its strategy to build an integrated transport, utility, and logistical infrastructure all across the nation. The newly acquired Tumb will be an addition to the existing seven multi-modal logistics parks (MMLP) in the Adani Logistics portfolio.

It is important to note that Adani Logistics is a wholly-owned subsidiary of Adani Ports and Special Economic Zone Ltd (APSEZ).

What is the significance of ICD Tumb?

Adani Logistics in a statement said that the ICD Tumb has a private freight terminal with four rail handling lines connected with Western DFC, custom notified land and bonded warehouse facilities. The ICD Tumb is strategically located between Hazira port, Gujarat and Nhava Sheva port, Mumbai along the Western DFC. Hence, this ICD tumb is crucial for its objective of providing cheaper logistical options to customers.

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APSEZ CEO and Director Karan Adani said, “This acquisition fits well with our transformation strategy towards becoming a transport utility as well as move us closer to our objective of providing economical door-to-door services to our customers”.

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It is important to note that ALL developed and continuously operates Multi-Modal Logistics Parks (MMLP) at Patli, Kishangarh, Kila Raipur, Malur, Mundra, Nagpur, and Taloja. APSEZ is part of the globally diversified Adani Group.

It seems that the richest Indian Gautam Adani is on a shopping spree. However, the idea behind these acquisitions seems to be crystal clear. He is coupling disjoint silos to make them into more cohesive units. He has scripted new business strategies proving that a first generation entrepreneur can be the richest person, bypassing the successful generational industrialists, in India.

The prime reason for his economic success is his pragmatic, holistic business strategy coupled with appetite for risk. He has shown his ability to bet on future technology. More importantly, his strategy of self-seller and self-consumer through such strategic acquisitions are demonstrating his economic prowess.

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