Essar Group

For the album, see Essar (Smokey Robinson album).
Essar Group
Private
Industry Conglomerate
Founded 1969 (1969)
Founder Shashi Ruia
Ravi Ruia
Headquarters Mumbai, Maharashtra, India
Area served
 Worldwide
Key people
 Shashi Ruia(Chairman)
Ravi Ruia (Vice-Chairman)
Prashant Ruia (Group CEO)
Products Steel
Oil and Gas
Electricity
Infrastructure
Shipping
Information technology
Retail
Real estate
Revenue Increase US$27 billion (2015)[1]
Number of employees
 60,000 (2015)[1]
Subsidiaries Essar Steel, Essar Steel Algoma, Essar Oil, Essar Shipping, Essar Hypermart, The MobileStore
Website www.essar.com

Essar Global Fund Limited is an Indian conglomerate group based in Mumbai, India. The Fund is a global investor, controlling a number of world-class assets diversified across the core sectors of Energy, Metals & Mining, Infrastructure (comprising ports and EPC businesses) and Services (primarily comprising shipping and BPO businesses).[2]

Essar began as a construction company in 1969 and diversified into manufacturing, services and retail. Essar is managed by Shashi Ruia – Chairman, and Ravi Ruia – Vice Chairman.[3]

Today, the company has expanded its global footprint, focusing on markets in Asia, Africa, Europe and the Americas.

History

Essar began its first operation with the construction of an outer breakwater in Chennai port. The name Essar is derived by combining the first letter of the Chairman's and Vice-Chairman's names – Shashi and Ravi, i.e. S plus R sounds like Essar. The company was incorporated in June 1976 under the name of Essar Construction Limited and was engaged primarily in core sector activities, including marine construction, pipeline laying, dredging and other port related activities. In 1984, the company ventured further into other core sectors mainly the field of exploration and development, drilling onshore and offshore oil and gas wells for Indian Public Sector oil exploration companies. The company's name was then changed to Essar Offshore and Exploration Limited in May 1987.

In August 2000, the company's name was changed to Essar Gujarat Limited, to reflect its highly diversified business interest. In 1988, the company made an initial public offer for its shares, which are now listed in Bombay Stock Exchange, National Stock Exchange of India and two other Indian stock exchanges.

In the 1990s the group entered into steel making with its Hazira plant in Gujarat and a pellet plant in Visakhapatnam. During the same decade the Essar expanded its scope into other businesses gas exploration, oil refinery, construction and GSM telephony.

As part of its business strategy of focusing on the iron and steel sector, the company hived off its unrelated business to a series of different companies. Offshore and energy operations were transferred to Essar Oil Limited in May 1992, Civil and mechanical construction business were transferred to Essar Projects Limited in March 1993.

With a vertical integration program in mind, construction of a technology Hot Rolled (HR) sheets and coil plant began in 1992. The plan commenced trial production in April 1995 and commercial production in April 1996.

The name of the company was changed from Essar Gujarat Limited to Essar Steel Limited in December 1995. The company operates the following facilities at Hazira, Gujarat state: MMTPA gas based Hot Briquetted Iron (HBI) plant; and MMTPA Hot Rolled Coils (HRC) plant.

Steel

Essar Steel is a global producer of steel with presence in Asia, Europe, Africa and North America. It has an annual capacity of 14 million tonnes. The product includes pipes, plates cold rolling, galvanizing and pre-coated segments.

It is India's largest exporter of flat steel with 10 million tons per annum (MTPA) of capacity in India and 4 million tons per annum (MTPA) in worldwide facility. Essar Steel is fully integrated from mining to retail and has specialised plants for value-added steel products like pipes and plates. On 11 June 2012, Essar Steel India commissioned a 19 MW heat recovery power plant at Hazira.[4]

In 2016, Essar Steel became the first India company to manufacture bullet-proof steel.[5]

Essar Minerals owns iron ore and coal mines in India, Indonesia, Mozambique and the USA, as well as undeveloped iron ore properties in Canada. The company has access to over 2.0 billion tonnes of iron ore reserves in India and USA and 450 million tonnes of coal reserves.

Current Operations

Hazira, Gujarat, India: A 10-million tonne steel plant at Hazira, largest in Western India. The plant is supported by a captive port, power plant, lime plant and oxygen plant. Downstream facilities :

Visakhapatnam, Andhra Pradesh, India: 8-million tonne pellet plant

Bailadila, Chhattisgarh, India: 8-million tonne iron ore beneficiation plant

Pune, Maharashtra, India:

Paradip, Orissa, India: 12-million tonne pellet plant of which 6-million tonnes is operational

Sault Ste. Marie, Ontario, Canada: A 4-million tonne steel plant

Essar Steel Algoma, Sault Ste. Marie, Ontario

West Java, Jakarta, Indonesia:

Retailing (across India): Over 400 steel retail outlets branded Essar Hypermart and Essar Expressmart Steel Processing Facility (across India & UAE): Largest steel processing & distribution facilities in India with an annual capacity of 4 million tonnes located in Pune (Maharashtra), Hazira (Gujarat), Bahadurgarh (National Capital Region), Chennai (Tamil Nadu), Bhuj (Gujarat) and Dubai (UAE)

Dudley, West Midlands, UK: 500,000-tonne steel processing centre

Indonesia: 200,000 tonnes

Under Execution

Jodha-Barbil area, Orissa, India: A 12-million tonne iron ore beneficiation plant

Minnesota, USA: A 7-million tonne pellet plant, a concentration plant and a direct-reduced iron plant [6] The Minnesota plant is under construction and not yet producing. Additionally, financing has not been secured and contractors are not being paid and have filed liens against the mine.[7]

Zimbabwe (Africa): Essar will expand its newly launched steel company, NewZim Steel Private Limited, in two phases:

Energy

Essar's primary business is in the power and oil sectors. Most of this is handled by Essar Energy, which is approximately 76% owned by Essar Group, is today India's 2nd largest power generation company in the private sector.[8] Its current generation capacity of 1,600 MW is being expanded to 8,070 MW.[9] Power generation comes from a combination of gas, coal and liquid fuel based power plants. Essar Energy holds a controlling stake in Essar Oil.

Essar Oil is an oil & gas company with onshore and offshore oil & gas blocks, with about 35,000 km2 available for exploration. Total reserves and resources across these blocks is 2,109 mmboe. The refineries are Vadinar in Gujarat India; Stanlow in Cheshire, United Kingdom, and 50% controlling stake in Kenya Petroleum Refineries. It has retail and direct sales in Kenya. The company does marketing of all products to SAARC countries. The company has about 750,000 bpsd (barrels per stream day) of crude refining capacity across three continents. It is the first private company in India to enter refined products marketing sector. It is the largest coal bed methane (CBM) player in India. It supplies bulk products to traders and direct customers. Essar also has a country-wide marketing network of over 1,400 retail outlets in India. It has tie-ups with other oil marketing companies that gives Essar Oil access to product and right to use their terminals and facilities for placing and marketing its products. This gives the company pan-India presence with more than 30 supply locations.

Current Operations

Essar Power is one of the lowest cost power producers and has a current generation capacity of 3,910 MW that is being expanded to 6,700 MW. It has gas, coal and liquid fuel-based power plants. Including two gas-based plants and one liquid fuel based plant in Hazira, a co-generation plant in Vadinar and a coal-based plant in Visakhapatnam. Two 1200 MW power plants in Tori, Jharkhand and Mahan, M.P. It owns about 500 million tonnes of coal reserves and resources in blocks spread across four continents.

Essar Power was listed on the London Stock Exchange in 2010. Essar Oil is listed on the Bombay Stock Exchange and the National Stock Exchange of India.

Current Operations

Hazira, Gujarat, India

Vadinar, Gujarat, India

Mahan, Madhya Pradesh, India

Salaya, Gujarat, India

Under Execution

Hazira, Gujarat, India

Mahan, Madhya Pradesh, India

Tori, Jharkhand, India

Paradip, Odisha, India

Services

Under the services domain, the group caters to shipping, business process outsourcing (BPO), telecom and realty.

Essar Shipping has presence in sea transportation, logistics and oilfields services. The company currently has a fleet of 26 vessels, with an additional 12 new ships on order. It provides contract drilling services to global oil majors, with a fleet of 13 onshore rigs and one semi-submersible offshore rig; two new jack-up rigs on order.

Essar has Business Process Outsourcing services, employing over 55,000 people across 13 countries. It has the Telecom services in Africa with over three million subscribers. It also has India's largest Telecom retail network, with over 725 outlets in more than 125 towns and cities.

Aegis official logo
The Aegis Tower at I. Villa St., Cebu IT Park, Apas, Cebu City, Philippines 6000 (currently owned by Ayala Land and largely occupied by Teleperformance)
Main article: Aegis (company)

Equinox Realty has operations in the Indian states of Maharashtra, Karnataka, Gujarat and Madhya Pradesh; and has a portfolio of approximately 16 million sq ft.

Infrastructure

The company's infrastructure scope falls under managing ports. They have also been involved in handling complex engineering, procurement and construction projects.

Essar Ports is one of India's largest operator of ports & terminals operating from locations in west and east coast of India. The company is building a cargo handling capacity (dry, bulk and liquid cargo) of over 181 million tonnes.

Current Operations

Under Execution

Projects

Essar Projects is the second largest engineering, procurement and construction (EPC) company in India. It operates under sectors of steel, oil, gas, power, ports and terminals.

It owns over 5,000 nos. construction equipment worth over USD 275 mn. Over 15,000 TPA (Tonnes per annum) of equipment and 40,000 TPA of fabricated structure with waterfront load-out facility for any size of equipment. It has dedicated engineering centers specializing in process, engineering and design for steel, ports, power & hydrocarbons with over 1,200 engineers. Global procurement support in India, Middle East, Europe and China.

CSR

Essar Foundation is the Corporate Social Responsibility (CSR) arm of Essar committed to maintaining the highest standards of CSR in its business activities and aims to make a difference to the communities around its area of operations. Essar Foundation collaborates with key stakeholders, especially the local administration and institutions to facilitate development with initiatives in education, livelihoods, women's empowerment and health.[13]

Other businesses

Essar has plans to expand into other key sectors. Its other businesses include

Information Technology – Essar deploys a host of IT systems which will enable their companies to compete as per global standards.

Publishing – Paprika Media has tied up with the UK-based publishing company, TimeOut, to publish the Indian edition of the magazine.

Agribusiness – Essar Agrotech deals in growing of flowers, herbs and vegetables primarily for international markets.

See also

References

  1. 1 2 "Essar Group Group | Our Group | Essar Group Group Profile". Essar Group. 23 June 2010.
  2. ↑ http://www.essar.com/section_level1.aspx?cont_id=SD7sjPUVBkw=
  3. ↑ Forbes topic page on Shashi & Ravi Ruia Forbes.com. Accessed April 2010.
  4. ↑ "Essar Steel commissions heat recovery power plant at Hazira". 11 June 2012.
  5. ↑ http://www.business-standard.com/article/companies/essar-steel-first-indian-company-to-develop-bullet-proof-steel-116062000599_1.html
  6. ↑ Essar Steel Minnesota signs 10-yr pellet supply pact with ArcelorMittal USA - Economic Times. Articles.economictimes.indiatimes.com (2013-02-13). Retrieved on 2013-12-06.
  7. ↑ http://www.twincities.com/localnews/ci_25270272/1-7b-minnesota-taconite-development-still-sitting-partially
  8. ↑ Leahy, Joe (March 7, 2010). "Essar Group eyes $3bn London listing - FT.com". Financial Times. Retrieved 2 September 2012.
  9. ↑ Narayanan, Pratish; Munroe, Tony (22 April 2010). "Essar launches $2.5 bln London energy IPO: sources". Reuters. Retrieved 20 June 2010.
  10. ↑ http://economictimes.indiatimes.com/industry/energy/oil-gas/essars-raniganj-block-becomes-indias-first-cbm-asset-to-cross-1-million-scmd-production-milestone/articleshow/52852743.cms
  11. ↑ http://economictimes.indiatimes.com/industry/energy/oil-gas/essar-oil-looks-to-double-petrol-pumps-to-4300-in-18-months/articleshow/52817798.cms
  12. ↑ http://www.abs-cbnnews.com/business/07/10/14/teleperformance-acquires-aegis-bpo-operations-ph-us
  13. ↑ http://www.essar.com/section_level1.aspx?cont_id=NqNJVibuBLs

External links

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