Essar Group

Essar Group[2] is an Indian multinational conglomerate company, founded by Shashi Ruia and Ravi Ruia in 1969. The company, known as Essar Global Fund Limited (EGFL), owns a variety of assets in the core sectors of energy (oil refining, oil and gas exploration and production, power), infrastructure & logistics (ports, projects), metals & mining, technology, and retail (oilfield services, information technology, and food retail). EGFL holds a nearly 100% stake in all its investments.[3]

Essar Group
TypePrivate
IndustryConglomerate
Founded1969 (1969)
Founder
Headquarters
Mumbai, Maharashtra
,
India
Area served
Worldwide
Key people
Products
RevenueIncrease US$14 billion (2020)[1]
Number of employees
7,000+[1]
Subsidiaries
Websitewww.essar.com

Significant Essar Group companies include Essar Oil UK, Essar Ports, Essar Oil & Gas Exploration & Production, Essar Shipping, Essar Power, and Essar Projects.

History

In 1969, Shashi Ruia won a major contract worth Rs. 2.3 crore for the construction of an outer breakwater for Chennai Port, thus laying the foundation of Essar Group.[4]

In 1976, Essar purchased India's first private tanker for US$2 million.[5]

In 1995, Essar Group entered the telecom sector with a Swiss PTT joint venture partnership branded as the Essar Cellphone.[6] In the same year, Essar Group started GSM operations from Delhi.[7] Essar, independently and in partnership with Hutchison (Hutchison Essar), subsequently acquired more telecom circles in India. By 2006, all the circles were under Hutchison Essar Limited.[8]

In 2007, Essar owned The MobileStore, an Indian chain of telecom and mobile phone retail stores.[9][10]

In 2017, Essar Steel India Ltd. (ESIL) was on the defaulter's list disclosed by the Reserve Bank of India.[11] Essar Oil was acquired by a consortium led by Rosneft, Trafigura, and UCP for $12.9 billion, and Essar Oil was rebranded as Nayara Energy.[12]

In November 2019, ArcelorMittal won approval from the Supreme Court to takeover Essar Steel and pay the creditors with equal rights.[13]

In March 2020, Essar Group was successful in cutting down the residual debt by 70% to about Rs. 12,000 crore.[14]

In February 2021, Essar Power entered into the renewable energy venture by setting up a 90 MW solar plant in Madhya Pradesh.[15]

Essar has established Vertex Hydrogen under the UK's HyNet project with Progressive Energy in December 2021 to help drive energy transition in the UK.[16]

Business verticals
  • Infrastructure & logistics
  • Energy
  • Technology & retail
  • Metals & mining

Acquisitions

In 2003, Essar Group acquired Aegis Communication and spread across 13 countries.[17] In 2014, Essar did a part sale of Aegis USA Inc. with annual revenues of $400 million to Teleperformance,[18] and in 2017, Essar left the outsourcing business by selling Aegis’ operations to Capital Square Partners (CSP).[19]

Essar Steel acquired HGPL and SCGL from Stemcor in 2005 and became an integrated steel producer.[20]

In 2007, Essar Global acquired a US-based steel company named Minnesota Steel LLC.[21]

In 2011, Essar Energy purchased Stanlow Refinery in North West England for $350 million.[22] Under Essar's leadership, the first phase of the turnaround of Stanlow refinery has been started during the financial year 2015–16 with $187 million net profit.[23] Essar plans a £250 million expansion of Stanlow refinery, with over 16% production of transport fuels in the UK.[24]

AGC Networks, a wholly-owned subsidiary of Essar Group, acquired Black Box Corporation in 2019.[25]

Initiatives

During COVID-19 pandemic, Essar Foundation opened Covid Care Centreert Devbhumi Dwarka, Gujarat,[26] organized vaccination drives,[27] and provided meals to needy people.[28]

See also

References
  1. "Corporate profile - About us - Essar". Essar Group. 23 June 2020. Archived from the original on 10 August 2013. Retrieved 11 July 2020.
  2. "Essar - Businesses Across Energy, Construction, Mining & IT Industry". Essar. Retrieved 24 March 2023.
  3. "Essar Group - Company Profile and News". www.bloomberg.com. Retrieved 26 September 2020.
  4. "Quest to Save Essar: As debt hits Rs 1.38 lakh crore, Ruias look to recast group". www.businesstoday.in. Retrieved 3 August 2022.
  5. "Essar Group Ltd". www.encyclopedia.com. Retrieved 3 August 2020.
  6. "Quest to Save Essar: As debt hits Rs 1.38 lakh crore, Ruias look to recast group - BusinessToday". Retrieved 5 August 2022.
  7. "Why the Essar Group made it in telecom but the Tatas couldn't - Mint". Retrieved 5 August 2022.
  8. "Hutch to ditch pink for Vodafone's red - The Economic Times".
  9. "Essar plans to set up 2,500 MobileStore outlets in 3 years - Economic Times". economictimes.indiatimes.com. 7 December 2007. Retrieved 20 July 2022.
  10. "The MobileStore has won the Retailer of the Year award". www.oneindia.com. Retrieved 20 July 2022.
  11. "RBI tells banks to file cases against 12 big loan defaulters in a month". Retrieved 5 August 2022.
  12. "Essar Oil completes $13 billion sale to Rosneft-led consortium in largest FDI deal". Retrieved 29 November 2022.
  13. "Supreme Court paves way for ArcelorMittal's takeover of Essar Steel in ₹42,000 crore deal". Retrieved 5 August 2022.
  14. "Essar to further cut down debt by 70% in last leg of deleveraging exercise". Retrieved 22 November 2022.
  15. "Essar Power to set up 90 MW solar plant in Madhya Pradesh for ₹300 crore". Retrieved 26 November 2022.
  16. "Essar sets up Vertex Hydrogen to help drive energy transition in UK". energy.economictimes.indiatimes.com.
  17. S, Rajalakshmi (27 November 2017). "Essar Group sells Aegis to Capital Square Partners for $300 million". www.thehindubusinessline.com. Retrieved 1 August 2022.
  18. "Aegis completes sale of US arm to Teleperformance". The Economic Times. 8 August 2014. Retrieved 1 August 2022.
  19. Dhanjal, Swaraj Singh (3 April 2017). "Essar sells Aegis BPO to Capital Square Partners". Livemint. Retrieved 1 August 2022.
  20. "Essar Steel acquires two Stemcor companies". Retrieved 24 November 2022.
  21. "Essar to acquire US steel firm". www.economictimes.indiatimes.com. Retrieved 21 November 2022.
  22. "India's Essar buys Shell's Stanlow refinery - Reuters". Reuters.com. 29 March 2011. Retrieved 4 August 2022.
  23. Das, Debabrata (3 April 2016). "Essar Oil UK turns around Stanlow Refinery - The Hindu BusinessLine". www.thehindubusinessline.com. Retrieved 4 August 2022.
  24. "Essar Oil UK to invest $250 million Stanlow refinery". Retrieved 23 November 2022.
  25. "AGC Networks completes Black Box Corporation acquisition". www.enterpriseitworld.com. Retrieved 19 November 2022.
  26. "Essar Group sets up 100-bed covid care centre at Dwarka, Gujarat". www.livemint.com. Retrieved 21 November 2022.
  27. "CSR: Essar vaccinates over 2,000 employees across locations so far". www.indiacsr.in. Retrieved 20 November 2022.
  28. "Coronavirus: Essar Foundation to provide 12.5 lakh meals, 1 lakh medical supplies to people in need". www.economictimes.indiatimes.com. Retrieved 21 November 2022.
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