NIIF invests $300 million in DP World container terminal subsidiary

This is the single largest investment by NIIF's master fund and takes the vehicle's total investment in DP World's India arms to $500 million, as per an official statement

Indian government-promoted National Investment and Infrastructure Fund (NIIF) on Wednesday said it has invested USD 300 million or Rs 2,250 crore for a 22.5 per cent stake in Hindustan Ports, a local arm of UAE's DP World.

This is the single largest investment by NIIF's master fund and takes the vehicle's total investment in DP World's India arms to USD 500 million, as per an official statement.

Hindustan Ports operates five container terminals, managing more than 5 million TEU or standard 20-ft container unit capacity, and accounts for a market share of over 20 per cent.

It operates two terminals in Mumbai, and one each at Mundra, Chennai and Cochin, NIIF said in a statement.

The latest investment from the NIIF master fund extends the existing DP World and NIIF partnership, formed through the creation of Hindustan Infralog Private Limited (HIPL) in 2018, it added.

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, as per the statement.

"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," DP World's group chairman and chief executive Sultan Ahmed Bin Sulayem said.

NIIF's managing director and chief executive Sujoy Bose said the investment is a testament to the attractive opportunities in the Indian ports and logistics sector.

"The investment will enable NIIF's domestic and international investors to have a meaningful exposure in the sector through a unique and scalable platform with a significant presence across sea-based container terminals and land-based container logistics infrastructure," he added.