Aegis Logistics forms JV with Japan's Itochu Petroleum for LPG

Aegis Logistics Limited, one of the India’s leading oil, gas, and chemical logistics companies, has sold 40% stake in its Singapore based wholly owned subsidiary, Aegis Group International Pte Ltd, to Itochu Petroleum Co (Singapore) Pte Ltd, a wholly owned subsidiary of Itochu Corporation for a total consideration of $ 5.85 million (about Rs 35 crore). The transaction will be subject to customary conditions precedent including lenders/third party approvals.
 
“In order for Aegis Logistics to strengthen its competitive position in LPG sourcing, supply and shipping and also to support the company in building new LPG import terminal capacity in the future, management proposes to establish a joint venture (JV) with Itochu Corporation, a Japanese multinational trading group specialising in oil & gas, metals and other commodities, which is also one of the big five general trading groups in Japan. Itochu Corporation is one of the largest global LPG companies by sales volumes,” said Aegis Logistics in a press release.
 
With growth in LPG demand and imports in India expected to soar over the coming ten years, the new joint venture with Itochu Corporation will enable the company to significantly expand and scale up its LPG division by allying with one of the gas majors in the world. This should result in a sizeable boost to Aegis Logistics’ sales growth, earnings and size in the medium term.
 
Aegis Logistics has five distinct but related business segments, and operates a national network of liquid terminals, liquefied petroleum gas (LPG) terminals, filling plants, pipelines, and gas stations to deliver products and services. Its client base includes many leading industrial companies in India as well as retail outlets and customers whom the company serve through distributors and Aegis Autogas stations. Aegis Group also operates internationally through its sourcing and trading subsidiaries located in Singapore.