Adani Ports and Special Economic Zone (NSE:ADANIPORTS, BOM:532921) has agreed to acquire Jaypee Fertilizers & Industries, the holding company of Kanpur Fertilizers and Chemicals, for 15 billion Indian rupees, according to a Thursday filing to the Indian stock exchanges.
The transaction is part of the implementation of the National Company Law Tribunal-approved resolution plan for Jaiprakash Associates (NSE:JPASSOCIAT, BOM:532532), which owns 100% stake in Jaypee Fertilizers.
Kanpur Fertilizers holds 243 acres of land in Kanpur, India, which is strategically ideal for the development of a logistics park and warehousing facilities, which could help Adani's logistics business. The company aims to expand its multi-modal logistics park network from 12 to 16 and increase its warehousing capacity by approximately four times by 2031.
The acquisition is also expected to help consolidate the company's inland logistics presence and service capabilities in North India.