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AEGIS LOGISTICS

Long
NSE:AEGISCHEM   None
Aegis Logistics is in the business of import and distribution of Liquified Petroleum Gas (LPG) and storage and terminalling facility for LPG and chemical products.

India’s leading oil, gas, and chemical logistics co. operates a network of bulk liquid handling terminals, liquefied petroleum gas (LPG) terminals, filling plants, pipelines, and LPG gas stations to deliver products and services.

It also Provides import, export, storage, and logistics services, handling Class A, B, and C products as well as all types of chemicals, POL Products and Vegetable Oils through its Liquid Business Division

Liquid logistics (34% of FY23 EBITDA): Aegis provides import, export, logistics, and storage services for all types of liquid chemicals, petroleum products, and vegetable oils. The company has terminals in six ports (Mumbai, Kandla, Pipavav, Mangalore, Haldia, Kochi) with total operational capacity of 1,603,000 KL.

LPG Segment (66% of FY23 EBITDA): The company has a presence across the entire value chain starting from sourcing, terminalling, to distributing LPG to industrial and retail clients. Total LPG static capacity is 115'000 MT with annual throughput of 9'600'000 MT.
Gas sourcing remains a major contributor of revenues, but profit margins are small as the company earns only a fixed sum for its service.

Company operates its LPG retailing business through 142 Autogas stations in 10 states with a plan to expand to 200 stations in 20 states and has a network of 290 LPG distributors across 140 cities in 15 states. Aegis also operates 37 LPG bottling plants through their supply to both commercial and domestic LPG markets. LPG retailing is the highest profit margin segment
Aegis witnessed a quantum jump in distribution volumes to industrial segment in FY23, with commissioning of their Kandla LPG terminal, where LPG substituting dirty fuels.

Strong clientele Base: Shell, Reliance, HPCL, BPCL, ONGC, HUL, Bombay Dyeing, etc. The company has pipeline connectivity with its major customers like HPCL, BPCL which has helped them maintain a long-term relationship with their customers.

Capacity Expansion
-Constructed of a new LPG terminal at Mangalore which is India’s largest cryogenic LPG terminal with a capacity of 80,000 metric tons.
-Started construction of a 110,000 KL liquids terminal at JNPT port.
-An additional capacity of 3,000 metric tons of spheres at Pipavav commissioned in mid FY24.
-Expansion at Kochi of 50,000 kl will be commissioned by FY25.

Comment:
Target 2 Achieved

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