The Adani Group has issued a clarification regarding the $1.397 billion MSC-Adani deal, stating that Vizhinjam Port will remain an open-access port serving all shipping lines that choose to call at the port, and that MSC will not have a monopoly at Vizhinjam.
Earlier, Kerala Chief Minister V.D. Satheeshan said the announcement that MSC would acquire a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL)—the concessionaire operating the Kerala government-owned Vizhinjam International Seaport—was made without informing or consulting the state government.
The state government has also conveyed its displeasure over the matter to the management of Adani Ports and Special Economic Zone (APSEZ) Limited.
APSEZ CEO Aswani Gupta came up with the explanation that the transaction was disclosed in accordance with applicable SEBI regulations governing listed entities. "At this stage, the transaction pertains to APSEZ's wholly owned subsidiary, Adani Vizhinjam Port Private Limited (AVPPL), and there is no immediate change in AVPPL's shareholding structure. Following the stock exchange filing, we informed the Government of Kerala. As the transaction progresses and all necessary approvals and processes are undertaken, APSEZ will continue to engage with all relevant stakeholders, including the Government of Kerala, in accordance with the applicable contractual, regulatory, and governance requirements."
Gupta noted that Vizhinjam Port will continue to operate as an open-access port, serving all shipping lines that choose to call at the port, and that the proposed partnership with MSC does not grant exclusive berthing rights to MSC or any of its affiliates or restrict access for any other shipping line.
All eligible shipping companies will continue to have the opportunity to use the port's facilities in accordance with applicable regulations and commercial arrangements.
"Notwithstanding the proposed transaction, the port shall continue to operate as a common-user terminal in complete compliance with the terms of the Concession Agreement," he said.
The Adani Group also noted that there will be no immediate operational changes until all regulatory approvals are in place, including approval from the concessioning authority, the Kerala government. "Any operational changes will follow the agreed timelines and regulatory clearances," the clarification said.
Notably, the Kerala Opposition had raised national security concerns regarding a foreign company acquiring a significant stake in the port operator.
The Adani Group responded by saying that MSC has been part of India's maritime sector for several years and already has the required security clearances, as it operates at major Indian ports. Notably, Vizhinjam is the third major collaboration between APSEZ and MSC, following their joint ventures at Mundra (Container Terminal No. 3) and Ennore.
The Adani Group also claimed that the partnership will strengthen India's maritime infrastructure and connectivity, attract larger transhipment volumes to Indian ports, create local jobs, improve port services and logistics efficiency, and support broader trade growth.
Earlier, the Kerala government announced its position that since MSC is not merely a financial investor but also the world's largest container shipping company and a major terminal operator, the government would closely examine the implications of its investment.
"The government will ensure five things,” the CM said in the assembly.
"First, we will examine all national security aspects related to this proposal. Second, we will safeguard public interest by ensuring that the port continues to function as a common user facility accessible to everyone. Third, we will ensure fair competition so that all stakeholders have equal access to the port and its services. Fourth, we will promote investment. We want to encourage investment by all players, not just one company. Fifth, we will keep in mind the long-term vision for the development of Vizhinjam Port.”
The concessionaire's position is that the collaboration will bring in the single largest foreign private investment in Indian port infrastructure and is intended to cement the port's emergence as a dominant transhipment gateway in the Indian Ocean region.
"The partnership is expected to strengthen the port's presence on East Africa trade routes and increase the share of Bangladesh cargo currently dependent on competing Southeast Asian transhipment hubs, accelerating its growth trajectory and enabling cargo volumes to ramp up significantly faster than originally envisaged. Higher volumes and increased port activity will create additional direct and indirect employment opportunities for the people of Kerala, while also contributing to higher economic activity and revenue generation for the state," Gupta noted.
Notably, concerns were also raised in the Kerala Legislative Assembly regarding ownership and control of Vizhinjam after the transaction is completed.
APSEZ's position is that even after the transaction is completed, majority control will remain with APSEZ, and it will continue to appoint the majority of the directors to the board of the concessionaire and be responsible for the complete operations and management of the port in compliance with the Concession Agreement.
"While TIL (MSC's terminal investment arm) will hold 49 per cent and have board representation, Adani will retain majority control and continue to consolidate, control, and manage the port as the majority shareholder. TIL will have board representation consistent with its equity stake. The agreement does not alter Adani's majority control or managerial authority," Gupta noted.
