Aegis Logistics and Royal Vopak of the Netherlands on Tuesday announced that of forming a joint venture (JV) – Aegis Vopak Terminals (AVTL), to grow together in the LPG, chemicals storage, and handling business.
Under this new partnership, we will see the two companies operate a network of terminals that are currently located in five strategic ports along the east and west coast of India. With a total capacity of around 9,60,000 cubic meters, the partnership will become one of the largest independent tank storage companies for LPG and chemicals in India and provide further growth, which targets mainly LPG and also chemicals and industrial terminal opportunities.
This investment would help Royal Vopak towards its strategy to allocate capital to grow in gas markets. The transaction is expected to close in early 2022, subject to customary closing conditions.
This joint venture with Vopak will accelerate the growth of Aegis in the terminals business and has the potential to allow Aegis to diversify into new areas of gas storage such as LNG and other energy projects including renewables, in partnership with the world’s leading independent tank storage company. We expect the deal to be significantly earnings enhancing for Aegis shareholders due to the deployment into growth opportunities of the combined financial firepower of the two groups and management in the terminals business.”~ Raj Chandaria, Chairman of Aegis Logistics
This is an investment in a growth market and by joining forces with Aegis we aim to deliver growth over the next ten years in line with the new joint ventures and India’s ambition for LPG. We are very excited about this new partnership. Aegis is a reputed local partner with a ready organization and proven track record of conceiving and executing tank farm assets in strategic locations along the Indian coastline.”~ Eelco Hoekstra, Chairman of the Executive Board and Chief Executive Officer (CEO) of Royal Vopak
Aegis Logistics is an Indian oil, gas, and chemical logistics company that saw its consolidated net profit soar 50.2% to INR 69.98 crore on an 18.6% decline in net sales to INR 1,011.17 crore in Q4 FY20 over Q4 FY19.