UPDATE 1- Aegis Logistics, Essar Oil to cross sell fuel

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MUMBAI, Nov 24 (Reuters) - Aegis Logistics Ltd (AEGS.BO: Quote, Profile, Research) said on Tuesday it has entered into an alliance with Essar Oil Ltd (ESRO.BO: Quote, Profile, Research) to cross sell fuel through their retail outlets.

The fuel will be sold in Gujarat, Maharashtra, Karnataka, Madhya Pradesh, Andhra Pradesh, Rajasthan and Tamil Nadu.

"Our auto LPG (Liquified Petroleum Gas) will be sold through Essar's petrol and diesel outlets and similarly Essar branded petrol and diesel through our auto LPG outlets," said Anish Chandaria, managing director and chief executive officer, Aegis.

Aegis Logistics retails auto LPG under the brand Aegis Autogas.

The company plans to invest 2.5-3 million rupees per dispensing machine which it plans to set up at the Essar outlets.

"The investment will be used for setting up dispensing machines, piping and infrastructure in the Essar outlets," Raj Chadaria, vice-chairman and managing director, Aegis, said.

Currently, Essar Oil has 1,200 retail outlets across the country.

The company, however, refused to divulge details about the revenue expected from the alliance.