India’s NIIF invests $300mn in UAE’s DP World owned HPPL, boosting existing ties

By Arya M Nair, Official Reporter
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DP World
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UAE-based DP World and India’s National Investment and Infrastructure Fund (NIIF) have strengthened their existing partnership, with NIIF Master Fund investing primary capital of approximately $300 million for a shareholding of about 22.5 percent in Hindustan Ports Private Limited (HPPL), the wholly owned subsidiary of DP World.

HPPL is one of India’s leading container terminal platforms with a proven track record of growth over the long-term. With this transaction, which is also the Master Fund’s single largest investment, NIIF’s investment will reach around $500 million.

The entity operates five container terminals managing more than 5 million TEU of capacity and representing a national market share of over 20 percent. The terminals are in strategic growth locations including Mumbai, Mundra, Chennai and Cochin.

This investment from NIIF Master Fund extends the existing DP World and NIIF partnership, formed through the creation of Hindustan Infralog Private Limited (HIPL) in 2018. Since its inception, HIPL has made substantial investments in rail logistics, multi-modal logistics parks, container freight stations, economic zones, cold chain infrastructure and contract logistics to create a market leading integrated logistics platform.

Sultan bin Sulayem
Sultan bin Sulayem
Group Chairman & CEO – DP World

“The broadening of our partnership with NIIF to include our flagship India ports platform is a natural extension of our existing relationship and aligns both parties to focus on delivering end-to-end supply chain solutions. Since the beginning of this partnership with NIIF, we have made significant progress in building an inland logistics infrastructure network of great scale that complements our container ports platform. Notably, the opportunity landscape in India remains significant and this transaction will allow us to accelerate investment across ports and logistics to drive returns for our respective stakeholders.”

As the value chain becomes more integrated, significant growth opportunities exist across the entire Indian ports and logistics space and both HIPL and HPPL are suitably placed to capture these opportunities.

The primary capital raised through this transaction will aid in new infrastructure development, drive supply chain efficiencies and support future growth initiatives of HPPL. The investment in this combined entity will improve cargo connectivity which will deliver cost efficiencies and an enhanced customer experience.

Mr. Sujoy Bose, Managing Director and CEO of NIIF, said that “The deepening of our successful 4-year partnership with DP World is a testament to the attractive opportunities in the Indian ports and logistics sector and the strategic vision and ongoing reforms under the PM Gati Shakti program.”

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