Aegis Vopak Terminals Ltd. explores funding options for future growth in India
Aegis Vopak Terminals Ltd. (AVTL), India’s largest independent tank storage company for LPG and chemicals, is exploring various funding options to support its future growth. The joint venture between the Aegis Group and Royal Vopak aims to expand its network of storage facilities across India, ensuring broader coverage and improved service delivery to its customers.
AVTL combines the strengths of Aegis Group, a leading Indian company specialising in logistics, supply chain solutions, and storage services for petroleum products, chemicals, and gases, and Royal Vopak, a global leader in providing storage and infrastructure solutions, based in Rotterdam, Netherlands.
As of 2024, Aegis Vopak Terminals Ltd. has a total storage capacity of approximately 1.5 million cubic metres. This capacity is spread across a network of 11 terminals located at five strategic ports along the east and west coasts of India. The terminals primarily handle LPG and chemicals, positioning the partnership as a significant player in India’s storage market for these products.
India’s chemical industry is one of the largest and fastest-growing sectors, encompassing pharmaceuticals, agrochemicals, specialty chemicals, and petrochemicals. The country is a significant exporter of chemicals, and efficient storage infrastructure supports the country’s competitiveness in the global market.
The AVTL board is currently assessing several options to determine the most effective approach for raising the necessary capital, including a potential public issue, preferential issue, or a combination of equity shares and debt.
The objective is to enhance AVTL’s capabilities and infrastructure, ensuring continued growth and expansion within India’s critical storage and logistics sector. The decision-making process will adhere to applicable laws and regulations, with the board exercising full discretion.
At this stage, no final decisions have been made, and there is no certainty regarding the outcome of the exploration. AVTL will make further announcements as necessary to keep stakeholders informed of any developments.
