JSW,

Adani
maybi
dforCof
feeDaygr
oup-
ownedSi
cal
Logi
sti
cs

Butthehigherr
evenuethatSi
cal
ismandat
edt
oshar
ewi
thgov
tpor
tsmaymakei
tanunv
iabl
e
proposi
ti
on,sayanaly
sts

SicalLogi
sti
csLt d—aCof feeDayGr
oupcompanythatr
unspor
ttermi
nal
sandcont
ainerf
rei
ght
stati
ons—i sl
ikelytoseebiddi
ngbyJSW Gr
oupandAdaniGr
oup,sour
cescl
oset
othe
developmenttold Busi
nessLi
ne.

TheDubaigover
nment
-ownedDPWor
ld,
acont
ainermaj
or,
too,
hasshowni
nter
est
,the
sour
cessaid.

Whil
ethemandatet
osell
major
it
yofCof f
eeDaygroupassetswasgiventoIDFCSecur
iti
es,
the
mandatef
orf
indi
ngabuyerf
orSicalwenttoI
CICISecur
it
ies.I
tisl
ear
ntthatthebi
dder
shave
ev
enenter
edint
oanon-di
scl
osureagreement
.

Si
calLogist
icscoul
dbeaper f
ectfi
tforAdaniPor
tsandSpeci
alEconomicZoneLtd(APSEZ),
I
ndia’
sbiggestpri
vat
epor toperat
orandSajj
anJindal
-l
edJSW I
nfr
astruct
ureLtdduetothe
l
ogist
iccompany ’
spresenceinareaswheretheyareal
sooper
ati
ngandl ooki
ngtoexpand.

Ar
ightdeal
?

Howev
er,
pot
ent
ial
bidder
scoul
dbeappr
ehensi
veaboutacoupl
eofi
ssuesatSi
cal
.

Thecompany ’
stwokeyportter
mi nal
sareoper ati
ngatCentr
algovernment-
ownedmaj orpor
ts
wheretherat
esareregul
ated.Moreover
,therev enueshar
ethatSi
cal i
scontract
ual
ly
-mandated
topaythegovernmentpor
tsissteep,makingitanunv i
abl
eproposit
ionforanyonebuyi
ngthe
asset
s.

Ahighr
evenueshar
ecr
impst
het
ermi
nal
’
sabi
l
ityt
oser
vicet
hedebtandear
nadecentr
etur
n
oncapi
tal
.
Forinstance,SicalIr
onOreTer minalsLtd,theentitythatwasawar dedt hecontractt
obuil
dand
operatea12- mill
iontonne(mt)capacityironoret erminalatKamar ajarPorti
n2006butwas
subsequentlyconv ert
edintoacoal handli
ngf acil
i
tyin2016, duet
ot hebanonexpor tofir
onore
fr
om Kar nataka,hastoshare54.5percentofi tsgrossr evenueswiththegov er
nment -
owned
portauthori
ty.Sicalhasa74percentst akeinthev enture.Aconsor t
ium ledbyYESBankLt d
hasloaned₹600cr oretotheterminal.

Sical
’
sironor
et er
minal
atNewMangalorePortTrust,whichitwoni n2009byquot ingarevenue
shareof37percent,
waster
minat
edbythefir
m citingforcemaj eureari
singfrom thebanon
exportoft
hesteel
-maki
ngcommodit
yfrom Karnataka,renderi
ngt hefaci
lit
yidle.But,i
tisst
il
l
showni nt
hebooks.

PSA-SicalTer
minal
sLt d,t
heent
itythatr
unsthecount
ry’
soldestPPPcont
ainert
erminalatVOC
PortTrustinThoot
hukudi,Tami
lNadu, i
sbesetbyt
ari
ffwoessince2002andhasthereputat
ion
ofbeingthemostlit
igatedPPPterminal
.

Besi
des,t
het ermi
nalwhereSi
ngapore’
sPSAholdsa51percentst
akeandSi
cal49percent,
ef
fect
ivel
ypay smorethan80percentofi
tsr
evenuesasr
oyalt
ytoVOCPortTr
ust.I
thandles
cl
oseto500,000TEUsay ear.

I
fSi
cal
deci
destodi
vesti
ts49percentst
akei
nthet
ermi
nal
,PSAhast
hef
ir
str
ightofr
efusal
ont
heshar
es.

Ot
herar
easofi
nter
est

Si
calalsohasacategor
y1l
i
censef
rom t
heI
ndi
anRai
l
way
sthatper
mit
sitt
oruncont
ainer
tr
ainsacrossI
ndi
a.

Apartfr
om portt
ermi
nalsandcontai
nertrai
noper
ati
ons, Si
calhasint
erest
sinmini
ng,r
oad
tr
ansport,
inl
andcont
ainerdepot
,warehousi
ngandshipping.I
talsoprovi
desoff
shor
esuppor
t
serv
icestotheoi
landgasindust
ryandownsandoper atesacuttersuct
iondr
edger.