India’s National Investment and Infrastructure Fund (NIIF) Master Fund will invest about $300 million for a shareholding of approximately 22.5 percent in Hindustan Ports Private Limited (HPPL), the wholly owned subsidiary of DP World.
With this transaction, which is also the Master Fund’s single largest investment, NIIF’s investment under this partnership will reach around $500 million.
The transaction is subject to customary completion conditions and is expected to close by Q1 2023.
HPPL is one of India’s leading container terminal platforms with a proven track record of growth over the long-term.
The entity operates five container terminals managing more than 5 million TEU of capacity and representing a national market share of over 20 percent. The terminals are in strategic growth locations including Mumbai (2), Mundra, Chennai and Cochin.
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, multi-modal logistics parks, container freight stations, economic zones, cold chain infrastructure and contract logistics to create a market leading integrated logistics platform.
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, Group Chairman and CEO of DP World, 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.”
Sujoy Bose, Managing Director and CEO of National Investment and Infrastructure Fund Limited, 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 program.”