Agarwal Industrial Acquires Konkan Storage Systems in Strategic Rs. 220 Crore Deal

Image Source: Youtube

Agarwal Industrial Corporation Ltd (AICL), India’s largest privatesector bitumen company, has announced the acquisition of 100% equity stake in Konkan Storage Systems Pvt Ltd for Rs. 220 million. The move marks a significant expansion of AICL’s warehousing and logistics footprint, reinforcing its integrated petrochemical and infrastructure capabilities.

Key Highlights of the Acquisition

The Rs. 220 million transaction gives AICL full ownership of Konkan Storage Systems, a Bangalorebased warehousing firm specializing in bulk storage terminals
The acquisition includes Konkan’s operational assets, land bank, and longterm client contracts across Karnataka and coastal Maharashtra
AICL aims to integrate Konkan’s facilities into its existing network of seven bulk terminals and 650+ fleet assets

Strategic Rationale and Synergies

The deal enhances AICL’s control over bitumen storage and distribution, reducing dependency on thirdparty terminals
Konkan’s proximity to key ports and industrial corridors aligns with AICL’s multimodal logistics strategy
The acquisition supports AICL’s goal of handling over 5 lakh MT of bitumen annually with improved turnaround times and service reliability

Operational and Market Impact

AICL plans to upgrade Konkan’s infrastructure with automated inventory systems and ecofriendly storage technologies
The move is expected to improve margins through vertical integration and better cost control
Analysts view the acquisition as a forwardlooking step toward AICL’s ambition to become a fullspectrum infrastructure solutions provider

Sources: Agarwal Industrial Corporation official website, Zauba Corp, Economic Times.