Adani Ports that operates Israel's Haifa Port accounting for 3 per cent of the company's total cargo volume said on Monday it is closely monitoring the ongoing conflict between Tel Aviv and Hamas militants.
Pointing out that the company has a business continuity plan, Adani Ports said it's fully alert in order to “respond effectively to any eventuality”.
"We are closely monitoring the action on ground which is concentrated in South Israel, whereas Haifa port is situated in the North. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality," Adani Ports said in a statement.
"We have taken measures to ensure safety of our employees and all of them are safe. At a time like this, our thoughts continue to be with the people of Israel," the statement said.
Watch: Ground report from Israel's Haifa Port, India's anchor in the Middle East | THE WEEK
In the backdrop of the conflict, the Gautam Adani-owned company's stock plunged as much as 4.5 per cent in Mumbai trading on Monday, with investors getting concerned about a potential escalation in the near future, according to Reuters.
In its statement that company said the overall contribution of Haifa in APSEZ’s numbers is "relatively small". "For the current financial year (Apr 23-Mar 24), we have guided for Haifa Cargo volumes range of 10-12 MMT and APSEZ’s total cargo volume guidance of 370-390 MMT. In the initial six months (Apr-Sep 23), APSEZ’s total cargo volume was ~203 MMT, of which the Haifa share is ~6 MMT. We stay confident of APSEZs business performance,” it added.
Avinash Gorakshakar, head of research at Profitmart Securities, told Reuters that commodity prices will also get impacted. "The next couple of months are going to be volatile for Adani Ports as the war has just started and will trade with a negative bias ... Besides, it is not just Israel and Iran, but commodity prices will also get impacted," the agency quoted Gorakshakar as saying.
– with inputs from agencies
