Aegis Logistics is India’s largest private-sector handler of liquid gas, a pure infrastructure company that builds, owns, and operates a chain of port-based storage terminals so that oil, gas, and chemical companies can move their products without owning the pipes and tanks themselves. Incorporated in 1956 and listed since 1978, the company transformed from a regional terminal operator into a national network by repeatedly using the same playbook: lock in a long-term customer contract, build the terminal, then use the predictable cash flows to fund the next terminal - a strategy it calls its “necklace of terminals” around India’s coastline. That approach, combined with a 2022 joint venture with Royal Vopak that brought global expertise and customers, has made Aegis the market leader at every major port where it operates. # Business segments Three engines built on the same port infrastructure - a gas logistics and distribution business that generates the bulk of revenue, a liquid-storage business that provides steady fee income, and an ammonia-terminal business under construction for the energy transition - each anchored by long-term contracts that make the next one possible. ## 1. Gas terminals and distribution: the LPG backbone that moves and sells the fuel **Aegis imports, stores, and distributes liquefied petroleum gas across India, earning money three ways - terminal fees, trading margins, and retail sales - with the low-margin sourcing business generating about 80% of revenue while the higher-margin terminal and distribution businesses drive profitability.** - **Terminal fees for every ton handled** - the division charges customers a throughput fee to receive, store, and send out LPG through its six port terminals, with total throughput reaching 5.15 million tons in the latest year. The terminals are connected to rail, road, pipeline, and jetty evacuation infrastructure, and Aegis is the only third-party terminal operator in India with railway connectivity for LPG, which widens the customer catchment area. - **Sourcing with zero working-capital drag** - the division buys LPG from global suppliers and sells it to domestic customers on a back-to-back basis, earning a fixed dollar spread while matching receivables and payables within 30 days so the business ties up almost no cash. Sourcing is done through vendors such as Itochu or directly from the open market, whichever offers the better price. - **Distribution that reaches the last mile** - Aegis sells LPG under its own brands to households, hotels, restaurants, and small factories through a network of 290 distributors across 140 cities, and operates 142 auto-LPG stations with plans to reach 200. The distribution business buys LPG from global suppliers, imports it through Aegis’s own terminals, and captures the retail margin - and margins tend to expand when global LPG prices are volatile or rising. - **Pipeline connections that lock in demand** - the Jamnagar-Loni pipeline is already connected to the Kandla terminal, and the Kandla-Gorakhpur pipeline is expected to connect in the first half of the coming year, which will allow the terminal to push LPG deep into northern India’s cooking-gas market. At Pipavav, a similar pipeline connection to Central India is expected shortly after, turning each terminal from a coastal storage point into a gateway for inland demand. - **Industrial customers switching from dirtier fuels** - beyond cooking gas, the division sells propane to industrial clusters like Morbi’s ceramic hub, where propane is 7-10% cheaper than natural gas and already meets about 40% of total gas demand. The sales pitch is straightforward: LPG is cleaner than diesel, furnace oil, and coal, and the division targets small and medium factories still burning those fuels. ## 2. Liquid terminals: the steady-fee storage business for chemicals and oil **Aegis stores and handles bulk liquid petroleum products, chemicals, and vegetable oils for customers at seven Indian ports, earning predictable revenue under long-term take-or-pay contracts that guarantee payment whether the tanks are full or not.** - **Paid for space, not product** - the division earns storage and handling fees under multi-year take-or-pay agreements, meaning customers commit to paying for a minimum volume and the revenue arrives regardless of short-term fluctuations in oil or chemical demand. The fee depends on the type of liquid handled, with specialised services like heated storage up to 230 degrees Celsius commanding higher rates. - **The largest private tank network at the busiest ports** - the division operates approximately 2 million cubic meters of liquid storage across Kandla, Pipavav, Mumbai, Mangalore, Kochi, Haldia, and JNPT, with the six major ports handling roughly 75% of India’s total liquids traffic. At Kandla alone, the division has about 952,000 cubic meters of capacity, making it one of the company’s largest hubs. - **Bought, not just built** - the division has repeatedly acquired terminals to enter new ports or deepen existing positions, including the purchase of roughly 500,000 kiloliters of capacity from Friends Group at Kandla in 2022 and three acquisitions totalling 110,000 kiloliters at Kandla, Kochi and Mangalore Ports in the following year. This acquisition strategy shortens the time it takes to start earning fees at a new location. - **Expansion anchored by a single large customer** - at Pipavav, a 15-year take-or-pay agreement with a leading conglomerate for petroleum products, with committed volumes above half a million metric tons per year, is underwriting the construction of additional rail and storage infrastructure. The pattern repeats across ports: secure the contract, then build the capacity. ## 3. Ammonia terminals: the green-energy bet under construction **Aegis is building India’s first independent ammonia import terminal, a business that will store and handle ammonia - a carrier for hydrogen and a fertiliser feedstock - and earn storage fees at roughly two-and-a-half to three times the rate of LPG, with similar 90% margins.** - **A 15-year contract before construction starts** - the first terminal, at Pipavav, is a 36,000-metric-ton static-capacity facility backed by a 15-year take-or-pay agreement with Hindustan Zinc for their upcoming fertiliser plant, with commissioning targeted for the first half of the coming year. The terminal was approved with an investment of approximately Rs. 500 crores, and Itochu has taken a 10% stake in the entity with an option to increase to 25% over three years. - **Revenue that starts with one tank-turn and grows** - the business model begins with one full turnover of the storage capacity per year, generating around INR 3,000 per ton of static capacity for ammonia, and adds turns as the market matures. Because the revenue rate per ton is a multiple of what LPG storage earns, a relatively small static-capacity base can generate meaningful fee income once operational. - **A second site already under discussion** - a non-binding memorandum of understanding with Larsen & Toubro is in place for potential joint development of ammonia terminals at Kandla, and additional land has been allocated at JNPT for tank storage that includes ammonia. The company is positioning ammonia as the next pillar of its terminal network, using the same contract-first, build-second approach it applied to LPG and liquids. # Group structure and partners **Aegis operates its port terminals through a joint venture with Royal Vopak, the world’s leading independent tank-storage company, while keeping its Mumbai terminals and retail LPG business wholly owned - a structure designed to combine local execution with global customers and standards.** - **The Vopak joint venture is the operating engine** - formed in 2022, Aegis Vopak Terminals Limited (AVTL) holds the liquid and LPG terminals at Kandla, Pipavav, Mangalore, Kochi, and Haldia, and successfully listed on the Indian stock exchanges in mid-2025. Aegis brought Indian market leadership and a portfolio of profitable assets; Vopak brought global expertise, new product capabilities, and access to international customers. - **Aegis retains full ownership of its original crown jewels** - the Mumbai liquid and LPG terminals and the entire LPG retail and distribution business were not contributed to the joint venture and remain 100% owned by Aegis Logistics, generating separate cash flows and dividends. - **A web of subsidiaries feeds the parent** - the group includes a Singapore-based LPG sourcing joint venture with Itochu, a wholly owned subsidiary that built the Mangalore cryogenic LPG terminal, and step-down entities holding the Haldia terminal (75% stake in Hindustan Aegis LPG Limited acquired via AVTL, with an exclusive terminaling agreement with Hindustan Petroleum through 2038) and the Pipavav ammonia terminal. The structure allows each terminal to have its own capital and partner mix while Aegis consolidates the accounts and retains management control.