Source – Business Line
Daijiworld Media Network – Mangalore (NR)  

Mangalore Dec 5: Aegis Logistics, a leading player in oil and gas logistics, well entrenched in the business of handling, storage and distribution of oil, chemicals and petroleum products is soon to make a foray into the city. It provides supply chain services to importers and exporters of petroleum products and chemicals. It has a strong presence in Mumbai and plans to expand its base across other ports. 

Currently, it has a three-pronged strategy of expansion across both existing and new capacities. One, Aegis’ plan is to strengthen its presence in Mumbai with the acquisition of new facilities and this holds potential given the port’s location.  

Two, is the expansion to other locations which is likely to help Aegis establish a pan-India presence. In this context, it is to be noted that Aegis has acquired land in Haldia and Mangalore for setting-up facilities in future and plans to extend its presence to Chennai and Kandla also.  

The company’s Kochi facility which is expected to commence operations by March 2008 also holds potential. Three, its foray into service contracts with oil marketing companies like the Mangalore Refinery and Petrochemicals and Bharat Petroleum Corporation, even if, insignificant in terms of revenue contribution now, could turn significant in five-six years.  

Moreover, the gas-trading segment of Aegis, involves import and distribution of liquefied petroleum gas (LPG) from Saudi Arabia. And also since it has a strong presence in auto-gas retailing, it intends to scale up the number of auto-gas dispensing stations from the current 22 to over a 100 in the next two years.  

This expansion with an emphasis on Tier- II cities like Mangalore etc will be predominantly franchise-based, thus helping the company expand its presence without significant incremental investment. Further, gas storage capacity could also expand with the acquisition of Hindustan Aegis LPG unit, pending court approval (expected by March 2008).