essar -vaibhav

8/9/2019 Essar -Vaibhav

1/14

VAIBHAV T.S

ROLL No.54

SECTION-B

PGDM 2009-11

IFIM BUSINESS SCHOOL

AN ASSIGNMENT ON ESSAR GROUPS CORPORATEPROFILE


2/14

Submitted To:Date of Submission:

PROF . S RIDEVI 18 TH JAN 2010.

FACULTY, IFIM.

ESSAR GROUPEssar is one of the leading corporate houses of India. The group has diverse businessinterests spanning Steel, Energy, Power, Communications, Shipping & Logistics, andConstruction. With operations in more than 20 countries across 5 continents, the Groupemploys 60,000 people, with revenues of about USD 15 billion in FY2008-2009.

Essar Group was founded by the Ruia family. The Ruia family originally belongs toRajasthan. In the 19th century, the family moved to Mumbai for business and trading

purposes. In 1956, Nand Kishore Ruia, the group founder, moved south to Chennai to begin independent business activities and thus the foundations of Essar Group were laid.In 1969, after the demise of Nand Kishore Ruia, his sons Shashi and Ravi Ruia took over the group and guided the group to its present destiny.

Essar began as a construction company in 1969 and diversified into manufacturing,services and retail. Over the last decade, it has grown through strategic globalacquisitions and partnerships, or through Greenfield and Brownfield development

projects, capturing new markets and discovering new raw material sources.

Today, the Group continues to expand its global footprint, focusing on markets in Asia,Africa, Europe, the Americas and Australia. Essar invests significantly in the latesttechnology to drive forward and backward integration in its businesses, and on leveragingsynergies between these businesses. It also focuses on in-house research and innovationto be a low-cost manufacturer with high quality products and innovative customer offerings.

Alongside its ambitious business pursuits, Essar has been committed to its socialresponsibility. The Group runs community outreach initiatives in all its plant locations,with a focus on education, healthcare, environmental and agricultural development, andself-employment.


3/14

All the investments of the group have beenconsolidated under Essar Global Ltd., alongwith its six sectoral holding companies: Essar Steel Holdings Limited, Essar Energy Holdings

Limited, Essar Power Holdings Limited, Essar Communications Holdings Limited, Essar Shipping & Logistics Limited and Essar Constructions FZE.

THE PROMOTERS

Listed here are the promoter directors of theEssar Group.

Mr Shashi RuiaChairman

Mr Ravi RuiaVice Chairman

Mr Prashant RuiaGroup Chief Executive
http://www.essar.com/%5Cupload%5Cpdf%5CEssar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Shashi_Ruia_Profile.pdf


4/14

Mr Anshuman RuiaPromoter Director

Ms Smiti KanodiaPromoter Director

Mr Rewant RuiaPromoter Director

BUSINESS I NTERESTS OF ESSAR GROUP

STEELE SSAR STEEL H OLDINGS L IMITED is a global producer of steel with presence inIndia, Canada, USA, Middle East and Asia. It is a fully integrated flat carbon steelmanufacturer from iron ore to ready-to-market products. Its product range include IronOre Pellets, Hot Briquetted Sponge iron (HBI), Hot Rolled Products, Cold RolledProducts' Galvanised Products. Essar Steel is India's largest exporter of flat products.Essar Steel is one of India's largest exporters of flat products, exporting to the highlydemanding US and European markets, and to the growing markets of South East Asiaand the Middle East.

The Board Of Directors of Essar Steel Holdings are-

Mr Shashi Ruia Chairman
http://www.essar.com/%5Cupload%5Cpdf%5CEssar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/%5Cupload%5Cpdf%5CEssar_Rewant_Ruia_Profile.pdf


5/14

Mr Ravi Ruia Vice Chairman

Mr Prashant Ruia Director

Mr Rewant Ruia Director

Mr SV Venkatesan Director Mr J Mehra Director

Mr VG Raghavan Director

Mr Vikram Amin Director (Sales and Marketing)

Mr Mahadev Iyer Director (Finance)

Mr Dilip Oommen Wholetime Director

Mr KV Krishnamurthy Director

L ISTINGEssar Steel Holdings is listed in the Bombay Stock Exchange with BSE Code 500627.

D IVIDENDOn 23-07-97 company declared final dividend of 10%.On 23-08-99 & on 13-08-01 Company declared final dividend but percentages of thedividend to the share value is not disclosed.

Refer link:http://www.moneycontrol.com/company-facts/essarsteel/dividends/ES01http://www.essar.com/common.aspx?cont_id=V+5qa1L+feY =
http://www.moneycontrol.com/company-facts/essarsteel/dividends/ES01http://www.essar.com/common.aspx?cont_id=V+5qa1L+feYhttp://www.moneycontrol.com/company-facts/essarsteel/dividends/ES01http://www.essar.com/common.aspx?cont_id=V+5qa1L+feY


6/14

E NERGY

E SSAR O IL L TD . (EOL) is leading integrated oil and gas company spanning theentire value chain: Exploration & Production, Refinery, & Marketing. Essar was one of the first private companies to bid for exploration blocks in 1993. It was also among thefirst to enter the refining sector when it was opened to private participation. Its refinery atVadinar, Gujarat has a capacity of a capacity of 10.5 MTPA.Exploration and Production (E&P) business has participating interests in severalhydrocarbon blocks for exploration and production of oil and gas. This includes the Ratnaand R-Series blocks on Bombay High, and an E&P block in Mehsana, Gujarat, which hascurrently started commercial production. It has also been awarded a coal bed Methane(CBM) block at Raniganj in West Bengal, and two more E&P blocks in Assam, India.

The overseas E&P assets include three onshore oil and gas blocks in Madagascar, Africa,and one offshore block each in Vietnam and Nigeria.

The Board Of Directors of Essar Oil Ltd. are-



Mr Prashant Ruia Director

Mr Anshuman Ruia Director

Mr Naresh Nayyar Managing Director

Mr P Sampath Director, Finance

Mr Dilip J Thakkar Director

Mr KN Venkatsubramanian Director

Dr G Goswami IDBI Limited, Nominee

Mr RP Singh IFCI Limited, Nominee

Mr VK Sinha LIC of India, Nominee


7/14

L ISTINGEssar Oil Ltd. is listed in the Bombay Stock Exchange as well as in National Stock Exchange with the respective codes BSE-500134 & ESSAROIL.

D IVIDENDOn 25-05-98 company declared a final dividend but the values are not disclosed.And again on 27-02-03 the company declared a final dividend for the effective date 20-03-03 but the percentage of dividend to the share value is not disclosed.(Refer link: http://www.moneycontrol.com/company-facts/essaroil/dividends/EO01 )

POWER E SSAR P OWER L IMITED set up India's first new generation independent power plantwith a 515 MW combined cycle capacity, at Hazira in the early 1990s. The capacity of this plant is being enhanced to 1500 MW. The plant has set new standards of excellencein the Indian power sector. It has the lowest manpower to megawatt ratio and one of thelowest capital costs per megawatt in India. Besides the above plant, Essar hascommissioned a 32 MW coal based captive power project at Vishakapatnam; It iscurrently executing a captive gas based Combined Cycle Power Plant of 355 MW in two

phases at Hazira, Gujarat; and setting up a 120 MW Refinery residue based Captive Co-generation Power Project at Vadinar.

The Board of Directors of Essar Power Ltd. are-


Mr Anshuman Ruia Promoter Director

Mr Rewant Ruia Promoter Director
http://www.moneycontrol.com/company-facts/essaroil/dividends/EO01http://www.moneycontrol.com/company-facts/essaroil/dividends/EO01http://www.moneycontrol.com/company-facts/essaroil/dividends/EO01


8/14

Mr KVB Reddy Executive Director

Mr SJ Coelho Independent Director

Mr RK Narayan Independent Director

Mr Mukul Kasliwal Independent Director

L ISTINGThe company is not listed in the any of the stock exchange in India and abroad.

COMMUNICATIONSIn the field of communications, Essar has interests in providing telecom services, telecomretail and telecom infrastructure. H UTCHISON - E SSAR , a joint venture between Essar and Hong Kong-based Hutchison Whampoa, is India's second largest GSM service

provider. The JV was recently acquired by the UK-based Vodafone Group Plc at a value

of USD 18.8 billion. Essar has retained its 33% stake in the new JV with Vodafone. Essar has entered telecom retail with its brand T HE M OBILE S TORE . The MobileStore is a chain of retail outlets managed by Essar Telecom Retail Ltd. inassociation with the Virgin Group. The store chain sells mobile handsets and accessories,as well as digital lifestyle products. Essar Telecom Infrastructure Private Limited(ETIPL) is one of the largest independent telecom infrastructure service provisioningcompanies in India.Essar Communications Holdings Limited acquired a 49 per cent stake in Econet WirelessInternational Limited by subscribing to fresh capital in the company. This is a GSM-

based mobile services network in Kenya with close to a million subscribers.

The Board Of Directors of Essar Teleholdings are-

Mr Rajiv Sawhney CEO, Telecom Business Group


9/14

Mr Rajiv Agarwal CEO, The Mobile Store Ltd.

Mr Madhur Taneja CEO, Essar Telecom Infrastructure Pvt. Ltd.

Mr S Srinivasa CEO, Essar Telecom Kenya Limited

Mr S Subramaniam CFO, Telecom Business Group Mr Sunil Jha Head, HR, Telecom Business Group

L ISTINGEssar Teleholdings has listed in Bombay Stock Exchange with the code 523267.

D IVIDEND :The company has not paid any dividend in the last 10 years.

SHIPPINGE SSAR SHIPPING L TD . (ESL) is one of the world's leading integrated sea logisticscompanies. It accounts for almost 14% of India's shipping fleet and owns India's largestVLCC (Very Large Crude Carrier), which is also India's first double hull, double bottom

VLCC. Essar's logistics business provides end-to-end logistics services from ships to ports, lighterage services, intra-plant logistics and dispatch of finished products. It ownstrans-shipment assets to provide lighterage support services, and onshore and offshorelogistics services. Its sea transportation business provides transportation managementservices for crude oil and petroleum products, and dry bulk cargo to the global energy,steel and power industries. With an experience of more than 220 ship years, it owns adiverse fleet of 25 vessels, and a further 12 new building vessels are on order at aninvestment of over USD 0.6 billion.

The Board of Directors of Essar Shipping Ltd. are-



Mr Anshuman Ruia Director


10/14

Mr Sanjay Mehta Managing Director

Mr AR Ramakrishnan Wholetime Director

Mr V Ashok Wholetime Director

Mr RN Bansal Director Mr N Srinivasan Director

Mr KV Krishnamurthy Director

Mr Dilip J Thakkar Director

L ISTING :

THE COMPANY IS LISTED IN THE BSE AND IN NSE. T HE BSE CODE IS 500630 AND THE COMPANY LISTED IN NSE WITH THE CODE ESSARSHIP.

D IVIDENDOn 03-06-98 company declared and paid 5% final dividend to its share holders.On the following dates company declared final dividend but the value is not known-

19-05-03 (Effective date was 28-08-03) 02-07-02 (Effective date was 04-09-02) 30-07-01.

(http://www.moneycontrol.com/company-facts/essarshippingportslogistics/dividends/ESP )

CONSTRUCTIONEssar is India's leading engineering, procurement and construction (EPC) contractor.

Essar has special expertise in marine construction and pipelines. Essar has laid 2,500 kmof pipelines and built 150 km of the prestigious Narmada canal. Essar is a well-knownname in the field of infrastructure construction particularly in the areas of ports, jettiesand roads. E SSAR C ONSTRUCTIONS (I NDIA ) L IMITED operates as a subsidiary of Essar Group.
http://www.moneycontrol.com/company-facts/essarshippingportslogistics/dividends/ESPhttp://www.moneycontrol.com/company-facts/essarshippingportslogistics/dividends/ESPhttp://www.moneycontrol.com/company-facts/essarshippingportslogistics/dividends/ESPhttp://www.moneycontrol.com/company-facts/essarshippingportslogistics/dividends/ESP


11/14

The board of Directors of Essar Constructions Ltd. are-

Mr Shashi Ruia Promoter, Director

Mr Rewant Ruia Director Mr VN Paradkar Executive Director

Mr TK Nagraj Director

Mr SV Venkatesan Director

L ISTINGThe company has not listed in any of the stock exchanges in India.

FINANCIAL SERVICESE SSAR SECURITIES is a 100 per cent subsidiary of Essar Global Limited (EGL), whichis a US$50 billion enterprise and employs more than 38,000 people worldwide.

The Groups decision to enter the financial services industry is in keeping with its visionto enter into new businesses, which have high potential for sustainable growth and value

creation. Through the financial services venture, the Group plans to foray into a widearray of financial services businesses like asset management and mutual funds, life andgeneral insurance, distribution of financial products, corporate and retail financing,and stock broking, among others.

The Board Of Directors of Essar Securities are-

Anshuman Ruia Non Exe.Non Ind.Director V G Raghavan Ind. Non-Executive Director

Vikash Saraf Ind. Non-Executive Director S M Lodha Ind. Non-Executive Director


12/14

L ISTINGThe company Essar Securities Ltd. is listed in Bombay Stock Exchange with the codeBSE-533149.

D IVIDENDSThe company has not declared any kind of dividends to share holders as it started itsoperations in 2009.

MINES AND MINERALS Essar Minerals Limited

To address Essars growing need for raw materials, like coal, iron ore and other minerals,Essar is actively pursuing the mining business globally through its company, Essar Minerals Ltd (EML). Essar Minerals has a dedicated team of well-qualified andexperienced mining engineers, geologists and surveyors who are involved in evaluating

mining deposits worldwide and critically analyzing the techno-economic feasibility of such properties. The team is also equipped to initiate mineral exploration. We areassociated with internationally reputed mining companies for quality and quantity

projections, mine planning, process development, environment management, adoption of the state-of-the-art mining technology, logistics, etc.

R EALTYEssar Realty LimitedAt Essar Realty has professionals drawn from varied disciplines, including architecture,

projects, finance and accounts, legal, corporate affairs, business development, andstrategy and corporate planning.


13/14

Currently,it has a presence in tier-I cities like Mumbai, Bangalore and Ahmedabad. It hasentered into one of Indias biggest realty transactions in Bandra-Kurla Complex,Mumbai. It has also signed a Memorandum of Understanding (MoU) with theGovernment of Gujarat, for a prestigious upcoming project called Gujarat InternationalFinance Tec-City (GIFT), which involves 10 million square feet of development,including the creation of a Signature Tower.

It is targeting 100 million square feet of potential developable land in its first phase of growth, with a mission to deliver five million square feet of fully developed space by theend of FY 2010-11.

PUBLISHINGPaprika Media

Launched in 2004, Paprika Media is the Groups foray into Publishing. The Publishing business is a separate entity with a dynamic and aggressive team. It tied up with the U.K. based publishing company Time Out in March 2004, to publish an Indian edition of themagazine. Time Out Mumbai was launched in September 2004 as a fortnightly priced atRs. 25 and has become an integral part of the entertainment of Mumbai. Paprika Media

plans to publish this title in other cities as well and is looking at opportunities in theentertainment and lifestyle space.

AGRIBUSINESS

ESSAR AGROTECH LIMITED (EATL) is an established name in agricultural producecatering to international markets. An offshoot of the Essar Group of companies, it

imbibes the experience of a group that has been running profitable and stable businessesspanning diverse sectors, for over quarter of a century and has all the vigor of a youngcompany.
http://www.timeoutmumbai.net/http://www.timeoutmumbai.net/


14/14

Essar Agrotech Limited was amongst the pioneers in the Indian Floriculture business.When it began its foray in to commercial production of Dutch variety of roses as far back as 1994, it was just a beginner in the international markets. But today, it is one of theleading players in exacting markets in Europe, Far-East, Middle-East and Australia. It has

been successful in establishing 'Indus Fresh' brand for Dutch Roses and ExoticVegetables.

Through its quality conscious practices and strategic moves, the company has not onlysucceeded in tough international markets but managed to influence and enhance theoverall perception of Indian companies as well. From a humble beginning that beganfrom the slopes of Lonavala, the strong roots of Essar Agrotech are spreading all acrossthe globe.

essar -vaibhav

Documents