Adani has acquired Ocean Sparkle, India’s largest marine services company
Ocean Sparkle Ltd (OSL) is India’s leading provider of third-party marine services.
The Adani group has acquired Ocean Sparkle Ltd, India’s most prominent marine services company. Adani Ports also Special Economic Zone Ltd (APSEZ) has entered into a definitive agreement to acquire a 100% stake in Ocean Sparkle Ltd through its subsidiary, Adani Harbour Services Ltd.
Ocean Sparkle Ltd (OSL) is the first in India and the eleventh to provide end-to-end marine services.
“Given the synergies of OSL also Adani Harbour Services. The consolidated business is possible to double in five years with improved margins. Creating significant value for APSEZ’s shareholders,” said Karan Adani, CEO also sole Director of APSEZ.
“This acquisition not only provides APSEZ with a significant share of India’s marine services market. But it also provides us with a platform for expanding our presence in other countries. Thereby facilitating APSEZ’s journey to becoming the largest port operator globally by 2030 and India’s largest integrated transport utility,” Adani said.
DEAL ON ADANI-OCEAN SPARKLE
The company’s main activities include towage, pilotage, and dredging. OSL is a market leader, with 94 owned vessels and 13 third-party-owned vessels.
OSL is worth Rs 1,700 crore as an enterprise value, with Rs 300 crore in free cash.
The company was founded in 1995 by a group of marine technocrats, with P Jairaj Kumar as Chairman also MD, who will continue to serve on the OSL board of directors.
OSL has long-standing relationships with its current clients, with contracts ranging from 5 to 20 years in length (the average contract length is seven years).
Furthermore, the contracts are on a Take or Pay (TOPA) basis, which adds sturdiness to OSL’s business model. The company has a presence in all of India’s major ports, 15 minor ports, and three LNG terminals.
OSL has built also deployed a team of 1,800 personnel across India.
In FY22, the company is expected to generate Rs 600 crore in revenue, Rs 310 crore in EBITDA. And Rs 135 crore in PAT. Marine Services (towage and pilotage) contributed approximately 92% of OSL’s total revenue, with the remaining 8% from dredging and other offshore services combined.
