Aegis Vopak Terminals has announced the signing of an agreement to acquire a 75% stake in Hindustan Aegis LPG Limited. This strategic acquisition marks a significant expansion move for the logistics company in the LPG terminal business.

Strategic Acquisition Details

The deal involves Aegis Vopak Terminals purchasing a controlling stake of 75% in Hindustan Aegis LPG Limited. This acquisition represents the company's strategic initiative to strengthen its foothold in India's energy infrastructure sector.

Business Expansion Strategy

This acquisition aligns with Aegis Vopak Terminals' growth strategy in the energy storage and logistics sector. The deal will provide the company with enhanced capabilities in the LPG terminal operations, potentially expanding its service offerings to customers in the energy sector.

The transaction demonstrates the company's commitment to building a stronger presence in India's growing energy infrastructure market, particularly in the LPG segment which plays a crucial role in the country's energy distribution network.

Aegis Vopak Terminals Limited (AVTL), India's largest independent owner and operator of tank storage terminals for LPG and liquid products, has reported a robust financial performance for Q2, along with significant strategic developments that underscore its ambitious growth trajectory.

Financial Highlights

AVTL demonstrated strong financial growth in Q2:

The company's liquid terminalling revenue increased by 28.3% year-on-year to ₹106.00 crore, while gas terminalling revenue grew by 23.7% to ₹81.50 crore. The gas throughput for the quarter reached 0.68 million metric tons, up from 0.52 million metric tons in the previous quarter.

Strategic Expansions and Acquisitions

AVTL announced several strategic initiatives to strengthen its market position:

1. Acquisition of Hindustan Aegis LPG Limited (HALPG): AVTL plans to acquire a 75% stake in HALPG, subject to shareholder approval. This acquisition will add 25,000 metric tons of LPG capacity at Haldia, marking AVTL's entry into the East Coast market.

2. Expansion at JNPA Port: The company is progressing with its ₹1,675.00 crore expansion project at JNPA, which includes adding 318,100 cubic meters of liquid capacity and 77,286 metric tons of LPG storage.

3. New Developments at Kandla Port: AVTL is developing a new liquid terminal with 94,148 cubic meters capacity at Kandla Port. The company has also signed a non-binding MoU with Larsen & Toubro to set up Ammonia Terminals.

4. Capacity Additions at Other Ports: The company plans to add 60,000 cubic meters of capacity each at Kochi and Mangalore ports.

5. Vadhavan Port Investment: AVTL has signed a non-binding MoU to invest approximately ₹20,000.00 crores in the upcoming Vadhavan Port.

Operational Updates

• The new LPG terminals at Pipavav and Mangalore are now fully operational and contributing to revenues.
• AVTL expects significant volume boosts once the Kandla-Gorakhpur Pipeline (KGPL) and Jamnagar-Loni Pipeline (JLPL) become operational.
• The company is gearing up for the commencement of Very Large Gas Carrier (VLGC) berthing at Kandla, which will allow handling of larger cargoes efficiently.

Future Outlook

Raj Chandaria, Chairman & Managing Director of AVTL, expressed confidence in the company's growth strategy: "With a strong balance sheet, expanding asset base, and growing demand for LPG, Ammonia, and Liquids, we are well-placed to deliver consistent growth and strengthen our leadership in India's energy logistics sector."

AVTL aims to achieve a cumulative capital expenditure of USD 1.20 billion by next year and targets an aggregate CAPEX of around USD 5.00 billion by 2030. The company plans to expand its presence from the current 6 ports to potentially 8-12 ports by 2030, significantly increasing its liquid and gas storage capacities.

As AVTL continues to execute its strategic roadmap, investors can anticipate sustained growth and value creation in the coming years, solidifying the company's position as a key player in India's rapidly expanding energy logistics ecosystem.