JSW Infrastructure’s Strategic Acquisition of Navkar Corporation: A Gateway to Enhanced Logistics

On June 27, 2024, JSW Infrastructure Limited, part of the JSW Group and India’s 2nd largest private commercial port operator, announced that its wholly-owned subsidiary, JSW Port Logistics Private Limited, will acquire a 70.37% stake in Navkar Corporation Limited from its promoters and promoter group.

The companies have signed the necessary agreements, but the acquisition will only be completed after receiving the required regulatory approvals and meeting certain conditions.

Navkar Corporation, listed on the BSE and NSE, operates several key facilities, including:

1. A Container Freight Station (CFS) and Gati Shakti Cargo Terminal at Somathane, Panvel
2. Two additional CFS facilities at Ajivali, Panvel
3. An Inland Container Depot (ICD) at Morbi, Gujarat, part of the Multimodal Logistics Park (MMLP).

Navkar also holds a Container Train Operator License for Category 1 and 2. The company has a strong presence in the industrial regions of Western India, specifically in Maharashtra and Gujarat, and uses its railway capabilities to extend its services across India.

This acquisition supports JSW Infrastructure’s strategy of pursuing valuable growth opportunities in the port and infrastructure sectors. It marks the company’s entry into logistics and other value-added services, enhancing its customers’ port connectivity and supply chain solutions.

Additionally, the acquisition is a significant step toward JSW Infrastructure’s long-term goal of developing a comprehensive logistics network across India for efficient last-mile connectivity. It also aligns with the company’s growth strategy to increase its share of port-related container cargo, driven by India’s robust economic growth.

About JSW Infrastructure Limited

JSW Infrastructure Limited is part of the JSW Group and operates environmentally friendly seaports and terminals, with 10 port concessions located on India’s west and east coasts. Internationally, it has a liquid tank storage terminal with a capacity of 465,000 cubic meters in Fujairah, UAE. The company’s ports and terminals can handle a variety of cargo and vessels up to Cape size. Its mostly automated cargo handling system ensures quick turnaround times and efficient use of resources. The strategic locations of these facilities make them a preferred choice for customers.

On June 28, 2024, the share price of JSW Infrastructure Limited opened at ₹335.15, touching the day’s low at ₹325.80, as of 09:52 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.