In the years following its acquisition by Blackstone Capital Limited, KIPL purchased land near Navi Mumbai, in the Raigad district of Maharashtra, which appears to be close to the port area of Jawaharlal Nehru. According to their own statements, the value of this land and other fixed assets does not exceed Rs 49 crore, and their income in the last fiscal year was only Rs 62.6 lakh.
The company’s income has been consistently low over the years and it has never made any money from its own operations. For years, his only income came from interest on term deposits, although this suddenly turned into equity market income in 2016-17.
KIPL’s highest earnings were recorded in 2014-15 when they earned Rs 4.7 crore – although they still lost Rs 52.3 lakhs anyway. They even went through two consecutive years (2012-14) without any income. Overall, this doesn’t appear to be a business with any an appropriate business or source of income.
According to its own documents, the only notable prospect for the company appears to be a project to install a Free Trade Warehouse Zone (FTWZ) (a kind of SEZ) on its land near Navi Mumbai. According to an equity valuation report dated April 15, 2015, KIPL had received formal government approval for the establishment of FTWZ from the government of India, and this would benefit the development of the port. This approved FTWZ was going to be the key to the company’s revenue for years to come, according to the stock valuation report.
However, there is no mention of a KIPL FTWZ either in the list of operational SEZs, or in the list of SEZs that received government approval in principle on December 1, 2017. This casts cold water on this unique perspective.
Again, you might ask, why is all of this important? KIPL is just not very successful; not all business ventures are successful. What makes KIPL different?
It is also valid skepticism. Until you realize that despite its lack of assets or business income, KIPL has somehow become a savior for private defense firms riddled with debt.