Extensive SWOT Analysis of Aegis Logistics – India’s Leading Oil, Gas & Chemical Logistics Company

Quick Stats on Aegis Logistics

Chairman	Raj K Chandaria
Year Founded	1956
Origin	Mumbai
No. of Employees	450+
Company Type	Public
Market Cap	Rs 8,058.96 Crore (2022)
Annual Revenue	Rs 787.36 Crores (2021)
Net Income/ Profit	Rs 101.77 Crore (2021)

 

Products & Services by Aegis Logistics

Aegis Logistics has been in the oil & gas logistics industry for many years and offers:

• Supply chain management services
• Storage and terminalling
• Storage and distribution
• Port operations
• Sourcing of products
• Road & pipeline movement and management

What’s new with Aegis Logistics

Check out some current news about Aegis Logistics:

• Aegis Logistics Compliances-Reg. 39 (3) – Details of Loss of Certificate / Duplicate Certificate.
• Investors Could Be Concerned With Aegis Logistics’ (NSE: AEGISCHEM) Returns On Capital.
• Aegis and Vopak announced that the companies have joined forces in India with the aim to grow together in the LPG, chemicals storage, and handling business.

Target Audience of Aegis Logistics

Check out the buyer persona to understand the target audience:

Now we have a better understanding of Aegis Logistics, let’s look into the SWOT Analysis of Aegis Logistics.

SWOT Analysis of Aegis Logistics

A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm allows Aegis Logistics to compare its business and performance with competitors and the industry as a whole.

So let us go ahead and first have a glance at the strengths of Aegis Logistics from the SWOT analysis of Aegis Logistics.

Strengths of Aegis Logistics

Your organization’s strength is something that makes it stand out from the rest. It can be a competitive advantage that sets it apart from its competitors. Some of the strengths of Aegis Logistics are as follows –

• Recent Results: Growth in operating profit with an increase in operating margins. The logistics player reported a consolidated net profit of Rs 228.01 crore in the quarter ended September 30, 2021, as against a net profit of Rs 57.25 crore in the same period last year.
• Strong Free Cash Flow: There is a strong free cash flow that puts resources into the hands of the company to expand into new projects. 
• Good ROI: It is relatively successful in new projects and provides a high return on capital expenditures through the creation of new revenue streams.
• Strong Brand Portfolio: Over the years Aegis Logistics has invested in building a strong brand portfolio. This brand portfolio can be very useful if an organization wants to expand into new product categories. 
• Outstanding Performance in New Markets: Aegis Logistics has accumulated experience in entering new markets and achieving success. The expansion has helped organizations create new revenue streams and diversify business cycle risks in the markets in which they operate. 
• Highly Skilled Labour: Highly skilled workforce through successful education and training programs. By investing enormous resources in the training and development of Aegis Logistics employees, they not only create highly qualified employees but also motivate them to achieve more. 
• Mergers and Acquisitions: A track record of successfully integrating additional companies through mergers and acquisitions. Over the past few years, he has successfully integrated several technology companies to optimize operations and establish a stable supply chain.

Weaknesses of Aegis Logistics

Strategy is all about choices and weaknesses are areas where companies can improve through SWOT analysis and leverage their competitive advantage and strategic positioning.

• More Investment is Needed in New Technologies: Given the scale of the expansion and the multiple geographic regions in which the company will expand, Aegis Logistics’ overall integrating processes require more money to be invested in technology. Current investments in technology are not aligned with the company’s vision. 
• Financial Planning is Not Being Performed Properly and Efficiently: The liquid asset ratio and liquidity ratio indicate that a company can use its cash more efficiently than it currently is. 
• High Labour Outflow: With higher dropout rates compared to other organizations in the industry, Aegis Logistics, and has to spend significantly more on employee training and development than its competitors. 
• Not Very Successful in Integrating Companies with Different Work Cultures: As mentioned earlier, Aegis Logistics is successful at integrating small companies. It has its share of failures to merge firms that have different work cultures.
• High Competition: The daily stock is high compared to its competitors, so the company has to raise more capital to invest in the channel. This could affect the long-term growth of Aegis Logistics.
• Product Marketing: Although the product is successful in terms of sales, its positioning and unique selling proposition are not clearly defined, making it vulnerable to attack from competitors in this sector.

Opportunities for Aegis Logistics

Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.

• New Environmental Policy: New opportunities will create a level playing field for everyone in the industry. This is a great opportunity for Aegis Logistics, Inc. to realize the benefits of new technologies and gain market share in new product categories.
• New Taxation Policy: New tax policies can have a significant impact on the way Aegis Logistics does business and open up new opportunities for it to increase its profitability.
• Open New Markets Through Government Agreements: New technology standards and government free trade agreements provided to Aegis Logistics open up opportunities for Aegis Logistics to enter newly developed markets. 
• New Customers Through Online Channels: The company has invested huge amounts of money in its online platform over the past few years. This investment opened up a new sales channel for Aegis Logistics. Over the next few years, companies will be able to seize this opportunity by better understanding their customers and meeting their needs through big data analytics.
• Economic Recovery: Economic recovery and rising consumer spending after years of recession and slow industrial growth are opportunities for Aegis Logistics to attract new customers and increase market share.

Threats to Aegis Logistics

Threats are environmental factors that can harm a company’s development. Here are some of Aegis Logistics’ threats:

• Legal Actions: The company may face legal action in other markets given the continuing fluctuations in different laws and product standards in those markets.
• Liquid Terminalling Business: the main threat to the business arises from changes to government policies and inadequate port infrastructure as well as geopolitical instability.
• Fierce Competition: Strong profitability has increased the number of players in the industry over the past two years, putting downward pressure on overall revenue as well as profitability.
• Liability Laws: Vary from country to country Aegis Logistics may face a variety of liability claims as a result of these market policy changes. 
• Quantitative Increases in Commodities: This could jeopardise Aegis Logistics’ profitability. A shortage of skilled labour in certain global markets threatens Aegis Logistics’ continued earnings growth in the market.
• Operates Globally: Because the company operates in many countries, it is exposed to currency fluctuations, especially given the unstable political environment in many markets worldwide. This may face some challenges in the market and may result in some losses as well.

Before we conclude let us have a look at the competitors of Aegis Logistics

Top 5 Competitors of Aegis Logistics

• Arya Offshore Services– Founded in 1976, Arya Offshore Services has over the years evolved into India’s largest and most comprehensive oil and gas logistics company, working with the top blue chip companies around the world.

• Vaquero Midstream- The company provides a full suite of midstream services including low and high-pressure gathering, treating, processing, compression, liquids handling, and transmission, thereby creating value for producers by building quality assets and utilizing mutually beneficial terms.

• MPLX- MPLX is a diversified, large-cap master limited partnership formed by Marathon Petroleum Corporation (MPC) that owns and operates midstream energy infrastructure and logistics assets and provides fuel distribution services.

•  Tara Chand InfraLogistic Solutions Ltd. TARCHA.-Tara Chand Infralogistic Solutions Limited is serving the infra-development and industrial capacity expansion needs of India through its three verticals: Warehousing and multi-modal Transportation, Construction Equipment Rental, and Turnkey Infra-Project Execution for four decades now.

• Starlog Enterprises Limited– With its humble beginning as a crane rental Company in 1983, it has rapidly expanded to become one of India’s foremost infrastructure solution providers. Starlog owns and operates cranes up to 600 MT capacity in the crane rental business. There are plans to further enhance the range and limits of our capacity to meet India’s growing needs for energy, infrastructure, and natural resources.

This ends our elaborative SWOT analysis of Aegis Logistics. Let us conclude our learning below.