MSC will buy 49 per cent stake of Adani Ports in Vizhinjam port
Vizhinjam port project will be valued at around $2.85 billion post deal
Adani Ports and Special Economic Zone Ltd. has announced the sale of 49 per cent of its stake in its Vizhinjam port project in Kerala to Mediterranean Shipping Co. (MSC) Group’s arm Terminal Investment Ltd. (TiL), the company said on June 30. TiL, the port operations arm of MSC Group, will buy Adani Port’s stake in the Kerala port for USD 1.4 billion.
The transaction values the Vizhinjam port project at around $2.85 billion and is being described as the largest foreign private investment in India's port infrastructure sector. The deal is subject to regulatory approvals.
TiL's investment will be made in two stages. In the first phase, the company will pay USD 539 million to acquire the 49 per cent stake in Adani Vizhinjam Port Pvt. Ltd. (AVPPL). The remaining USD 858 million will be invested after the completion of the port's ongoing expansion project, which is expected to be finished by December 2028.
"We are pleased to expand our long-standing partnership with MSC to Vizhinjam as the port enters its next phase of growth," Ashwani Gupta, chief executive officer of Adani Ports, said.
The partnership marks the third collaboration between Adani Ports and MSC. The two companies already jointly operate container terminals at Mundra and Ennore ports. By bringing in one of the world's largest shipping companies as a strategic partner, Adani Ports expects to strengthen Vizhinjam's position as a major transhipment hub in the Indian Ocean region.
Commissioned in December 2024, Vizhinjam is India's first deep-water transhipment port. The facility currently has an annual cargo handling capacity of 1.6 million twenty-foot equivalent units (TEUs). Following the expansion, its capacity is expected to increase to 5.7 million TEUs by the end of 2028.
The port has witnessed rapid growth since starting operations. According to Adani Ports, Vizhinjam handled 1.3 million TEUs in FY26 and crossed the milestone of handling two million TEUs within just 18 months of operations. The port also welcomed its 1,000th vessel in June this year and has handled more than 70 ultra-large container vessels, the highest among Indian ports.
Shares of Adani Ports were trading 1.7 per cent higher at Rs. 1805.90 on the NSE at the time of writing. Adani Ports said the partnership with TiL will help attract higher cargo volumes, improve global connectivity and accelerate the development of the Kerala-based port. The company believes Vizhinjam has the potential to emerge as one of the leading transhipment hubs in Asia, reducing India's dependence on foreign ports for handling international cargo and strengthening the country's maritime infrastructure.
