This growth of Mundra comes as a surprise as most of the ports around the country saw of growth of just around 7-8% and due to the overall slowdown , ports on a macro level are expected to see a fall in cargo handling, especially in January and February. Mundra too is expected to feel the effect of the slowdown in the fourth quarter to some extent but should be able to bounce back by March.
The Dahej port is estimated to go on stream in second half of 2010. Mundra has started handling car exports for Suzuki and the first consignment of over 1,570 cars went to UK and Italy in January. The aim of the company is to make it a car export hub as its pre-dispatch inspection section centre has been set up by Suzuki. Mundra Port is also expanding its cargo handling capacity to 50 million tonnes by 2010, from 30 million tonnes now. This is set to more than double to 120 million tonnes by 2015. The company’s new coal terminal, with a capacity to handle 35 million tonnes a year, is expected to be ready by 2010.
Mundra had come out with its IPO in 2007 and collected Rs 1,771 crore, has so far utilised Rs 824.89 crore while Rs.946.11 crore remained unutilized.
The Adani group has approached Board of Approval on SEZs of the government with a proposal to merge its three facilities at Mundra. The merger of the three SEZs will help the developer to cut expenses on infrastructure, utilities and administration. The two adjacent Adani SEZs are situated near the Mundra Port & SEZ - while two are multi-product zones, the third is a power SEZ.
Stay invested as long term prospects of the company look good.