Adani to buy top marine services co for Rs 1,530cr

MUMBAI: Ports tycoon Gautam Adani is set to acquire the country’s largest marine services company Ocean Sparkle for Rs 1,530 crore. He will purchase Ocean Sparkle from a group of marine technocrats (who own 35%) and financial investors (65%) through Adani Harbour Services, a fully owned arm of his publicly listed Adani Ports.
Established in July 1995, Ocean Sparkle carries out towage, pilotage and dredging services across all ports and LNG terminals in India.It owns 94 vessels. The acquisition will make Adani Harbour the leader in India’s marine services market.
Ocean Sparkle also operates in Sri Lanka, Saudi Arabia, Oman, Yemen and Qatar. It clocked a revenue of Rs 622 crore in FY21 and employs around 1,800 personnel in the country. Around 92% of its revenue was contributed by towage and pilotage, while the remaining 8% was from dredging. It is expected to record a profit of Rs 135 crore in FY22. Its chairman and MD P Jairaj Kumar will continue in his role after the change in ownership structure.
Ocean Sparkle has a robust business model as it has long-term take or pay contracts with customers that range from 5 to 10 years. Around 80% of revenue and 85% of operating profit is from take or pay contracts. The company’s marine services business — Adani Harbour Services and Ocean Sparkle — is expected to have a revenue of Rs 5,000 crore by FY27, it said in a filing.