Nov. 23 (Bloomberg) -- Aegis Logistics Ltd. plans to spend as much as 20 billion rupees ($439 million) over seven years to build oil storage facilities along India’s coastline to meet demand, Chief Executive Officer Anish Chandaria said.
“There is a global boom going on for oil storage facilities,” Chandaria told reporters in Mumbai today. “Many companies need access to onshore storage.”
The company plans to increase capacity at a port in the southern city of Kochi to about 82,000 kiloliters from 55,000 kiloliters and build an 80,000 kiloliter storage terminal at the western port city of Haldia, he said. Aegis may also build facilities in southeast and southwest India to cover the country’s coastline, Chandaria said.
The Mumbai-based company’s liquid handling capacity will increase to 1 million kiloliters from 300,000 kiloliters by March 2014 once expansion at Kochi, Haldia and Pipavav ports is complete, Chandaria said.
Aegis plans to raise as much as 1 billion rupees selling shares to large investors in a “few months,” he said. The company’s shares were little changed at 349.25 rupees at the 3:30 p.m. close of trading in Mumbai. The Bombay Stock Exchange’s benchmark Sensitive Index declined 1.3 percent.
Separately, A.P. Moeller-Maersk A/S’s container-terminal arm agreed to lease almost 100 acres of land to Aegis at Pipavav, in the western state of Gujarat. Aegis will build a $90 million oil terminal at the port, about 150 miles north of Mumbai, the companies said in a statement today.
To contact the reporter on this story: Hemal Savai in Mumbai at email@example.com
To contact the editor responsible for this story: Hari Govind at firstname.lastname@example.org