Company Profile
Overview:
Aegis Vopak Terminals Limited (AVTL) is one of India’s leading independent operators of tank storage facilities, specializing in handling liquefied petroleum gas (LPG) and various liquid products. The company is a joint venture between Aegis Logistics and Royal Vopak, offering secure storage and efficient logistics services for products such as petroleum, chemicals, vegetable oils, lubricants, and gases including LPG, propane, and butane.
Operations and Infrastructure:
AVTL operates a network of terminals located strategically at major ports across India. These terminals provide significant storage capacity for liquid products and LPG, supported by modern safety systems, pipelines, and multimodal transport connectivity through road, rail, and sea routes.
Business Segments:
- LPG Storage and Handling: Facilities dedicated to storing and managing liquefied petroleum gas products.
- Liquid Products Storage: Storage services for petroleum derivatives, chemicals, vegetable oils, and lubricants.
Financial Highlights:
The company has shown strong financial growth, with rising revenues and profitability in recent years, reflecting increasing demand and operational efficiencies.
IPO Plans:
AVTL is planning an initial public offering to raise capital aimed at repaying debt, financing expansion projects such as a new LPG terminal, and supporting general corporate purposes. The IPO price band has been set, and the company has appointed leading financial institutions to manage the offering.
Strategic Advantage:
With its terminals positioned near key shipping routes and ports, AVTL benefits from efficient logistics and quick product evacuation. This strategic location supports India’s growing energy needs and positions the company well for future growth in the LPG and liquid storage sectors.
Business Model
Aegis Vopak Terminals Limited operates as a third-party tank storage service provider, focusing on the storage and handling of liquefied petroleum gas (LPG) and various liquid products such as chemicals, petroleum products, vegetable oils, and lubricants. The company’s business model revolves around the following key components:
- Storage Services:
AVTL offers large-scale, secure storage capacity through its network of strategically located terminals at major ports across India. Customers include oil companies, chemical manufacturers, and LPG distributors who require safe and efficient storage for their products. - Handling and Logistics:
The company provides comprehensive handling services, including loading, unloading, and transportation support via road, rail, and sea. This integrated logistics capability ensures timely and cost-effective product movement. - Third-Party Operator Model:
As an independent storage provider, AVTL serves multiple clients on a non-exclusive basis, optimizing terminal utilization and providing flexible storage solutions tailored to client needs. - Infrastructure Investment:
Continuous investments in modern infrastructure—such as pipelines, safety systems, and technology upgrades—enhance operational efficiency, safety, and compliance with environmental standards. - Revenue Generation:
The company generates revenue primarily through storage fees charged based on the volume and duration of storage, along with additional service fees for handling and logistics operations.
Product Portfolio
Aegis Vopak Terminals Limited specializes in providing storage and handling services for a wide range of liquid products, primarily focusing on:
- Liquefied Petroleum Gas (LPG):
Storage and distribution of LPG, propane, and butane for domestic, commercial, and industrial use. - Petroleum Products:
Includes various refined petroleum liquids such as diesel, petrol, and other fuel oils. - Chemicals:
Storage of a diverse range of industrial chemicals used in manufacturing and processing industries. - Vegetable Oils:
Handling and storage of edible oils catering to food processing and export markets. - Lubricants:
Storage and management of lubricants used across automotive and industrial sectors.
Features Across Products:
- High Safety Standards:
All storage terminals are equipped with advanced safety systems including fire detection, firefighting equipment, and emergency response protocols to ensure safe handling of hazardous liquids and gases. - Modern Infrastructure:
State-of-the-art facilities with pipelines, jetties, and storage tanks designed for efficient loading, unloading, and storage of various liquid products. - Multimodal Connectivity:
Terminals offer seamless connectivity via road, rail, and sea routes, enabling flexible and cost-effective logistics solutions. - Environmentally Compliant:
Operations adhere to strict environmental norms with systems such as zero liquid discharge (ZLD) and vapor recovery to minimize pollution and environmental impact. - Scalable Storage Capacity:
A wide range of storage tank sizes and configurations to accommodate diverse volumes, supporting both small and large-scale clients. - Real-Time Monitoring:
Implementation of advanced digital monitoring and control systems for inventory management, safety, and operational efficiency.
Financial Snapshot (as of March 31, 2024)
📊 Financial Highlights (₹ in Crores)
| Financial Metric | Amount (₹ Crore) | Remarks |
|---|---|---|
| Revenue | 561.76 | Significant growth year-over-year |
| Profit After Tax (PAT) | 86.54 | Strong turnaround from loss |
| Return on Equity (RoE) | 8.7% | Efficient use of shareholders’ funds |
| Return on Capital Employed (RoCE) | 8.4% | Effective capital utilization |
| Net Worth | 1,152 | Increase compared to previous year |
| Total Borrowings | 2,586 | Increased due to investments |
📈 Key Financial Ratios
| Ratio | Value | Description |
|---|---|---|
| Return on Equity (RoE) | 8.7% | Measures profitability relative to shareholder equity. |
| Return on Capital Employed (RoCE) | 8.4% | Indicates how efficiently the company uses its capital to generate profits. |
| Debt to Equity Ratio | ~2.24 | Shows proportion of debt used relative to equity, reflecting leverage. |
| Current Ratio | 1.1 (approx) | Indicates short-term liquidity and ability to meet current liabilities. |
| Net Profit Margin | ~15.4% | Percentage of revenue that converts into net profit, showing operational efficiency. |
| Asset Turnover Ratio | 1.2 (approx) | Measures how efficiently assets generate revenue. |
Initial Public Offering (IPO) Plans
- Issue Size: Around ₹3,500 crore through a fresh issue of equity shares.
- Price Band: Between ₹223 and ₹235 per share.
- IPO Period: Scheduled from May 26 to May 28, 2025.
- Listing: Expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Use of Funds:
- A large portion will be used to repay existing debt, helping strengthen the company’s financial health.
- Part of the funds will be invested in acquiring new infrastructure, including a cryogenic LPG terminal in Mangalore.
- Remaining funds will support general corporate purposes.
Objectives of the Issue
- Debt Reduction:
The primary goal is to use a significant portion of the IPO proceeds to repay existing borrowings, which will reduce the company’s debt burden and interest expenses. - Infrastructure Expansion:
Funds will be used to acquire and develop new facilities, including a cryogenic LPG terminal in Mangalore, to enhance storage capacity and service offerings. - Strengthening Financial Position:
By improving the capital structure, the company aims to bolster its financial health and increase operational flexibility for future growth. - General Corporate Purposes:
Remaining proceeds will be allocated to general business activities, supporting working capital needs and other corporate requirements.
🎯 Objectives of the IPO
Repay Debt:
A major portion of the funds will be used to reduce existing borrowings, helping lower interest costs and improve the company’s financial stability.
Expand Infrastructure:
The IPO proceeds will finance the acquisition and development of new storage facilities, including a cryogenic LPG terminal in Mangalore, to boost capacity and operational reach.
Strengthen Balance Sheet:
By raising fresh equity capital, the company aims to enhance its financial position and maintain a healthy capital structure.
Support Business Growth:
Additional funds will be used for general corporate purposes, including working capital requirements, to support ongoing and future growth initiatives.
Future Outlook
- Capacity Expansion: The company is growing its storage facilities, including setting up a large terminal at Jawaharlal Nehru Port Trust to meet increasing demand.
- New Market Entry: Plans are underway to enter the ammonia storage sector with a new terminal at Pipavav, tapping into emerging energy needs.
- Strong Revenue Growth: Expected to see steady revenue growth driven by new projects and better utilization of existing infrastructure.
- Capital Investment: Committed to significant capital spending in the coming years to support infrastructure development and expansion.
- Leading Market Position: Maintains a strong presence as one of India’s top independent tank storage operators, benefiting from partnerships with global and local players.
- Challenges: Faces regulatory hurdles for new projects and competition from established state-owned companies, but its expertise in specialized storage offers a competitive edge.
Key Growth Areas:
Storage Capacity Expansion:
The company is increasing its capacity for storing liquids and LPG by developing new terminals at major ports.
New Market Diversification:
Expanding into ammonia storage and exploring opportunities in renewable energy storage.
Strategic Partnerships:
Strengthening collaboration with Royal Vopak to enhance operations and market presence.
Sustainability Focus:
Committed to environmentally responsible practices and building sustainable infrastructure.
Customer Base and Market Reach:
Serving a broad range of customers across multiple countries with a focus on long-term relationships.
🧭 Vision and Leadership
Vision:
Aegis Vopak aims to be India’s top independent provider of safe, reliable, and sustainable storage solutions for LPG, chemicals, and other liquid products. The company focuses on supporting India’s shift toward cleaner and sustainable energy.
Leadership Team:
- Chairman & Managing Director: Leads with over 25 years of industry experience and strategic insight.
- Chief Executive Officer: Drives operational efficiency and growth, bringing strong leadership from related industry roles.
- President (Business Development): Focuses on expanding market reach and exploring new opportunities.
- Chief Financial Officer: Manages financial health with extensive experience in corporate finance.
Market Positioning and Growth Prospects
Market Positioning
- Aegis Vopak is one of India’s largest independent operators of tank storage for LPG and liquid products.
- The company runs multiple terminals across key ports, handling a significant share of the country’s LPG and liquid imports.
- It serves a wide range of customers, including major oil companies, with a strong focus on repeat business and long-term relationships.
Growth Prospects
- Plans are in place to expand LPG and liquid storage capacities in the near future.
- Funds raised from the IPO will support new acquisitions and help reduce existing debt.
- The company is also focused on sustainable growth, exploring projects that align with India’s energy transition goals.
