JSW Infra to Acquire Group's Rail Logistics Units for ₹1,212 Cr

• JSW Port Logistics will acquire three rail logistics firms from JSW Shipping & Logistics for ₹1,212 crore, pending approvals
• Access to Indian Railways’ GPWIS and LSFTO schemes, plus a moratorium on new GPWIS licenses until 2027
• The acquired companies, with 21 rakes and major client contracts, aim for ₹150 crore EBITDA by FY27

JSW Infrastructure Ltd announced recently that it has entered into a share purchase agreement with JSW Shipping & Logistics Pvt Ltd to acquire three rail logistics companies for ₹1,212 crore in enterprise value, through its subsidiary JSW Port Logistics Pvt Ltd.

 Included in this agreement are the following three rail logistics businesses such as JSW Rail Infra Logistics,  JSW Minerals Rail Logistics and JSW (South) Rail Logistics. These acquisitions are subject to both shareholder and regulatory approval prior to closing.

Following completion of the transaction, these companies will be considered step-down subsidiaries of JSW Infrastructure and will be eligible for participation in the Indian Railways General Purpose Wagon Investment Scheme (GPWIS) and the Liberalised Special Freight Train Operator (LSFTO) Program. As of November 30th, these companies have a total of 21 active rakes and have ordered an additional four rakes currently in transit.

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Rake operators generate their revenues from rebates from Indian Railways and the premiums charged for market access. The fact that the new owners will receive a moratorium until February 2027 on the issuance of new GPWIS Licenses (thereby restricting new entrants) is an apparent benefit of this acquisition.

Further, the acquired businesses also operate in conjunction with leading clients, such as JSW Steel and Bhushan Power & Steel, under long-term transport agreements and project an annualized EBITDA of ₹150 Crores by FY27.

Acquisition of these businesses supports JSW Infrastructure's ambition to build a comprehensive multimodal Logistics Platform. Following the acquisition of Navkar Corporation in October 2024, the company intends to increase its rake fleet from 25 rakes to 45 by FY27 and 110 Rakes by FY30 to take advantage of anticipated growth in national Freight Volume.