Summary:
Adani Ports has agreed to sell a 49% stake in Vizhinjam Port to MSC’s Terminal Investment Limited (TiL) in a $1.4 billion deal, the largest foreign private investment in India's port infrastructure. The partnership will support the port's expansion, boost cargo volumes, and strengthen Vizhinjam's position as a major transshipment hub. The deal also deepens Adani Ports' partnership with MSC, helping accelerate future growth.
The Adani Ports & Special Economic Zone Limited (APSEZ) has entered into an agreement for the sale of 49 percent shareholding in Adani Vizhinjam Port Private Limited (AVPPL), which is APSEZ’s wholly owned subsidiary that runs the Vizhinjam International Seaport located in the state of Kerala, to Terminal Investment Limited (TiL), the container terminal investment vehicle of the multinational shipping corporation Mediterranean Shipping Company (MSC).
This deal, worth $1.397 billion (approximately ₹13,225 crore), is seen as the largest foreign investment ever made in India's port infrastructure sector.
Investment Structure and Expansion Plans
As per the agreement, TiL will make a payment of $539 million for the acquisition of the 49% equity interest in AVPPL. Also, TiL will be investing an additional amount of $858 million till December 2028 to meet its share of investment in the expansion plan of the port.
The total investment is TiL’s 49% share in the $2.85 billion valuation of the Vizhinjam Port. This port expansion plan will make the total investment at around $1.75 billion in the coming phases.
The current handling capacity of Vizhinjam Port in relation to containers is 1.6 million TEUs which is being upgraded to 4.1 million TEUs, while the target is to reach 5.7 million TEUs by December 2028.
Partnership Expected to Drive Cargo Growth
According to APSEZ, the strategic alliance with MSC is believed to make cargo volume visible, boost traffic and reinforce Vizhinjam’s status as one of the key transshipment hubs of the Indian Ocean area.
Additionally, the cooperation will be aimed at increasing supply chain efficiencies, relay cargo volumes, the presence of the port in the East Africa trading routes and securing more cargo from Bangladesh, most of which presently passes via competing Southeast Asia transshipment hubs.
Furthermore, the transaction is believed to release money for Adani Ports while providing a guaranteed cargo flow owing to cooperation with the world’s largest container shipping firm. The deal becomes the third alliance between APSEZ and MSC, following their partnerships at Mundra and Ennore ports.
Vizhinjam's Rapid Growth
Commissioned in December 2024, Vizhinjam has become the first deep-draft mega transshipment port in India and boasts of one of the most rapid ramp-ups in operations in India's ports industry.
During its first full year of operations from December 2024 to December 2025, the port handled 1.3 million TEUs via 615 vessels, thereby becoming the first port in India to record over 1 million TEUs at the earliest.
Within just 18 months of its commissioning, the port crossed the milestone of 2 million TEUs, making it the first Indian port to achieve the milestone within such a short span of time. It has already recorded its 1,000th vessel by June 2026 and has also handled over 70 ULCVs.
Management Commentary
Commenting on the deal, Ashwani Gupta, Whole-Time Director & CEO at APSEZ said, “Vizhinjam is a premier transshipment port and has come out strong with its growth rate, which has been truly unparalleled. This extended partnership with MSC will help us achieve the next level of development for our port along with increased connectivity of India with the global mature and emerging markets.”
In response to the news, the stocks of Adani Ports have climbed 1% in early trade to ₹1,794. The stock price has seen an increase of more than 20% in the year to date.
