India’s National Investment and Infrastructure Fund (NIIF) will invest a primary capital of INR 22.5 billion (close to $300 million) acquiring approximately 22.5 per cent of DP World’s subsidiary Hindustan Ports Private Limited (HPPL).
This transaction is subject to customary completion conditions and is expected to close by Q1 2023. This marks the Fund’s single largest investment.
NIIF’s total investment under this partnership will reach around $500 million according to DP World’s statement.
HPPL is one of India’s leading container terminal platforms, operating five container terminals with more than 5 million TEU of capacity and terminals in key locations – including Mumbai, Mundra, Chennai and Cochin.
The investment further extends the existing DP World and NIIF partnership formed in 2018 through the creation of Hindustan Infralog Private Limited (HIPL).
Since its inception, HIPL has made investments in rail logistics, multi-modal logistics parks, container freight stations, economic zones, cold chain infrastructure and contract logistics.
DP World noted that the primary capital raised through this transaction will aid new infrastructure development, drive supply chain efficiencies and support future growth initiatives of HPPL.
“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,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.
“Since the beginning of this partnership with NIIF, we have made significant progress in building an inland logistics infrastructure network of great scale that complements our container ports platform.
“Notably, the opportunity landscape in India remains significant and this transaction will allow us to accelerate investment across ports and logistics to drive returns for our respective stakeholders.”
DP World is expanding its landside reach in India, as it recently opened a new technology centre in Bangalore – the second office to be opened by the terminal operator this year.