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

by | Case Studies | 0 comments

Previously we looked at the elaborated SWOT analysis of Kesoram Industries, One Of The Pioneer Companies In India. Now, let us hop over and look at the elaborated SWOT Analysis of Aegis Logistics.

Aegis Logistics is an India–based company, which was incorporated in the year 1956. It commenced business as a chemical manufacturer in 1967. Aegis Group plays a key role in India’s downstream oil and gas sector, and its flagship company, Aegis Logistics Limited, is India’s leading oil, gas, and chemical logistics company

Another aspect that has made Aegis Logistics a giant today is marketing. Marketing changes as the world goes online,  and when you want to stay up to date – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Want to see how Aegis Logistics has succeeded in the downstream logistics industry? In this blog, you will learn about the SWOT analysis of Aegis Logistics. Before we get started, learn more about the Aegis Logistics company, how it was established, its products, financial position, and its competitors.

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About Aegis Logistics

SWOT Analysis of Aegis Logistics

Aegis Limited is a Non-govt company, incorporated on 07 Jan 1956. It’s a public unlisted company and is classified as a company limited by shares.

The Group has five distinct but related business segments, and operates a network of bulk liquid handling terminals, liquefied petroleum gas (LPG) terminals, filling plants, pipelines, and gas stations to deliver products and services. Their client base includes many leading industrial companies in India as well as individual retail customers.

Aegis Group also operates internationally through its sourcing and trading subsidiaries located in Singapore. Aegis Logistics Ltd. shares have been listed on the Bombay Stock Exchange since 1978. Its shares also trade on the National Stock Exchange.

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)

 

SWOT Analysis of Aegis Logistics - auto-lpg


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


Competitors of Aegis Logistics

The top 3 competitors of Aegis Logistics are

  • Arya Offshore Services
  • Vaquero Midstream
  • MPLX


As 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.

SWOT Analysis of Aegis Logistics - SWOT Infographics of Aegis Logistics

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 organisation’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 organisation wants to expand into new product categories. 
  • Outstanding Performance in New Markets: Aegis Logistics has accumulated experience to enter new markets and achieve success. The expansion has helped organisations 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 optimise 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 organisations 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 realise 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 them 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 around the world. This may face some challenges in the market and may result in some losses as well.


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

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To Conclude

Aegis Logistics is a well-known logistics company with significant global positions. During the SWOT analysis of Aegis Logistics, we found that the company is highly dependent and enjoys strong brand awareness and trust from its customers. It has a solid logistic base and covers all markets it serves, but suffers from more active research and development from an increasing number of manufacturers and competitors in the same space.

But being such a huge brand across multiple countries, Aegis Logistics should continue to innovate and develop more products and launch them in the market with the best possible marketing strategies.

Especially digital marketing which is vital in today’s growing and expanding world, to get better results and to remain competitive in the market. If you don’t have any idea of what digital marketing is or want to learn more about it and upgrade yourself, here is Online Digital Marketing Course to know more.

We hope this blog on the SWOT analysis of Aegis Logistics has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Aegis Logistics, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Aegis Logistics in the comments section below.

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