JSW Infrastructure Acquires Indian NCR Rail Logistics Asset for INR 4.67 Billion

en.Wedoany.com Reported - On September 10, India's JSW Infrastructure Limited completed the acquisition of 100% equity in NCR Rail Infrastructure Limited through its wholly-owned subsidiary Khurja Rail Terminal Private Limited, for a consideration of approximately INR 4.6747 billion. Following the completion of the transaction, NCR Rail became an indirect wholly-owned subsidiary of JSW Infrastructure, through which the company acquired an operational private rail freight terminal and related warehousing and land assets located in Khurja, Uttar Pradesh.

The acquisition was implemented in accordance with an approved resolution plan. In addition to the INR 4.6747 billion equity acquisition consideration, JSW Infrastructure paid approximately INR 419.4 million to purchase approximately 39.57 acres of land from Arshiya Limited. Taking both components into account, the asset acquisition involved funds of approximately INR 5.094 billion.

NCR Rail's core asset is an operational private rail freight terminal equipped with 6 rail operating lines, two completed and operational covered warehouses with a warehousing area of approximately 200,000 square feet, and a land reserve of approximately 130 acres. The terminal is located in Khurja, Uttar Pradesh, approximately 90 kilometers from New Delhi and approximately 40 kilometers from the under-construction Jewar Airport.

JSW Infrastructure had previously incorporated this asset into its national rail logistics network layout. Company management disclosed that the acquisition offer for NCR Rail was approximately INR 4.67 billion, and that the Khurja asset is close to the Eastern Dedicated Freight Corridor and Jewar Airport, and is planned to serve as part of its national logistics node network. The company is planning to build approximately 25 to 30 logistics centers in India, with the network planned to extend from Arakkonam near Chennai to the National Capital Region.

Following the completion of this transaction, JSW Infrastructure acquired not only the rail terminal operating entity, but also rail loading and unloading lines, warehousing facilities, and land resources that can continue to be developed. The existing terminal is already operational; therefore, this newly added node represents the formal completion of the transfer of asset ownership and control, rather than the launch of project planning or new construction works.

JSW Infrastructure's existing business primarily covers ports, terminals, and logistics infrastructure. The company's disclosed national logistics plan positions rail freight terminals as important landside nodes in addition to ports, and increases logistics centers through modes such as self-development, acquisition of stressed assets, and Indian Railways' Gati Shakti Multi-Modal Cargo Terminal. Following the completion of the acquisition of the Khurja asset, it has become an important rail logistics node in this network close to the Delhi National Capital Region.