India-based Aegis Logistics is planning to build a series of terminals, its chairman K. M. Chandaria said on 17 July.
The companys strategy is to build a necklace of port terminals around the coastline of India, construct inland depots and retail autogas outlets, Chandaria said at the companys AGM on the back of releasing record profit results before tax of Rs.54.35 crores (8.97 million).
Aegis has now identified a number of major new business opportunities which include: transit storage and re-export of crude oil and petroleum products, the bunkering business (refuelling of ships with marine fuels), jet fuel logistics for the airline industry and non-fuel retailing in its autogas stations.
The logistics business for trans-shipment and re-export of petroleum products is one of the biggest future opportunities for the company, the chairman asserts.
There is a global boom in demand for such oil storage facilities and India is now on the radar for international oil trading companies. These firms are interested to come into India, for transit storage of their crude oil and petroleum products. The product is then re-exported depending on their trading requirements. For the first time, India will become part of their Asian supply network and Aegis is negotiating to become a major partner in servicing their needs.
The volumes involved are many times larger than have ever been handled by Aegis in the third party liquid logistics business and this business can drive the companys growth.
The same network infrastructure built by Aegis can also be used to enter into other key businesses in the future such as the marine fuel logistics business and ATF logistics for the airline industry at the major ports.
The oil and gas logistics sector has remained relatively small in India by global standards until now, but with continued deregulation and liberalisation of the oil sector by the government, the scope and scale of the business is likely to undergo a huge expansion.
The oil price deregulation recently announced by the government is a step in the right direction and will have a positive impact on Aegis.
In the liquid logistics division, the groups terminals at Mumbai are operating at 100% capacity.
The group initiated de-bottlenecking at its existing sites which will release additional capacity during the ensuing year. The company is progressing well in its strategy of building a necklace of port terminals around Indias coastline and it will be making further announcements shortly.