VAIBHAV T.

S
ROLL No.54
SECTION-B
PGDM 2009-11
IFIM BUSINESS SCHOOL

AN ASSIGNMENT ON ESSAR GROUP’S CORPORATE

PROFILE
Submitted To:
Date of Submission:

PROF. SRIDEVI
18 TH
JAN 2010.
FACULTY, IFIM.

ESSAR GROUP
Essar is one of the leading corporate houses of India. The group has diverse business
interests spanning Steel, Energy, Power, Communications, Shipping & Logistics, and
Construction. With operations in more than 20 countries across 5 continents, the Group
employs 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 to
Rajasthan. 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 global
acquisitions 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 latest
technology to drive forward and backward integration in its businesses, and on leveraging
synergies between these businesses. It also focuses on in-house research and innovation
to be a low-cost manufacturer with high quality products and innovative customer
offerings.

Alongside its ambitious business pursuits, Essar has been committed to its social
responsibility. The Group runs community outreach initiatives in all its plant locations,
with a focus on education, healthcare, environmental and agricultural development, and
self-employment.
 All the investments of the group have been
consolidated under Essar Global Ltd., along
with 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 the
Essar Group.

• Mr Shashi Ruia
Chairman

• Mr Ravi Ruia
Vice Chairman

• Mr Prashant Ruia
Group Chief Executive
 • Mr Anshuman Ruia
Promoter Director

• Ms Smiti Kanodia
Promoter Director

• Mr Rewant Ruia
Promoter Director

BUSINESS INTERESTS OF ESSAR GROUP

STEEL
ESSAR STEEL HOLDINGS LIMITED is a global producer of steel with presence in
India, Canada, USA, Middle East and Asia. It is a fully integrated flat carbon steel
manufacturer from iron ore to ready-to-market products. Its product range include Iron
Ore Pellets, Hot Briquetted Sponge iron (HBI), Hot Rolled Products, Cold Rolled
Products' 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 highly
demanding US and European markets, and to the growing markets of South East Asia
and the Middle East.

The Board Of Directors of Essar Steel Holdings are-

• Mr Shashi Ruia — Chairman

 • 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

LISTING
Essar Steel Holdings is listed in the Bombay Stock Exchange with BSE Code 500627.

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

Refer link:
http://www.moneycontrol.com/company-facts/essarsteel/dividends/ES01
http://www.essar.com/common.aspx?cont_id=V+5qa1L+feY=
 ENERGY
ESSAR OIL LTD. (EOL) is leading integrated oil and gas company spanning the
entire 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 the
first to enter the refining sector when it was opened to private participation. Its refinery at
Vadinar, Gujarat has a capacity of a capacity of 10.5 MTPA.
Exploration and Production (E&P) business has participating interests in several
hydrocarbon blocks for exploration and production of oil and gas. This includes the Ratna
and R-Series blocks on Bombay High, and an E&P block in Mehsana, Gujarat, which has
currently 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 Shashi Ruia — Chairman

• Mr Ravi Ruia — Vice Chairman
• 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
LISTING
Essar Oil Ltd. is listed in the Bombay Stock Exchange as well as in National Stock
Exchange with the respective codes BSE-500134 & ESSAROIL.

DIVIDEND
On 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
ESSAR POWER LIMITED set up India's first new generation independent power plant
with 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 excellence
in the Indian power sector. It has the lowest manpower to megawatt ratio and one of the
lowest capital costs per megawatt in India. Besides the above plant, Essar has
commissioned a 32 MW coal based captive power project at Vishakapatnam; It is
currently 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 Shashi Ruia — Chairman

• Mr Anshuman Ruia — Promoter Director
• Mr Rewant Ruia — Promoter Director
 • Mr KVB Reddy — Executive Director
• Mr SJ Coelho — Independent Director
• Mr RK Narayan — Independent Director
• Mr Mukul Kasliwal — Independent Director

LISTING
The company is not listed in the any of the stock exchange in India and abroad.

COMMUNICATIONS
In the field of communications, Essar has interests in providing telecom services, telecom
retail and telecom infrastructure. HUTCHISON- ESSAR, 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 THE MOBILESTORE.
The MobileStore is a chain of retail outlets managed by Essar Telecom Retail Ltd. in
association 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 provisioning
companies in India.
Essar Communications Holdings Limited acquired a 49 per cent stake in Econet Wireless
International 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

 • 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

LISTING
Essar Teleholdings has listed in Bombay Stock Exchange with the code 523267.

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

SHIPPING
ESSAR SHIPPING LTD. (ESL) is one of the world's leading integrated sea logistics
companies. It accounts for almost 14% of India's shipping fleet and owns India's largest
VLCC (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 owns
trans-shipment assets to provide lighterage support services, and onshore and offshore
logistics services. Its sea transportation business provides transportation management
services 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 a
diverse fleet of 25 vessels, and a further 12 new building vessels are on order at an
investment of over USD 0.6 billion.

The Board of Directors of Essar Shipping Ltd. are-

• Mr Shashi Ruia — Chairman

• Mr Ravi Ruia — Vice Chairman
• Mr Anshuman Ruia — Director
 • 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

LISTING:
THE COMPANY IS LISTED IN THE BSE AND IN NSE. THE BSE CODE IS 500630 AND THE
COMPANY LISTED IN NSE WITH THE CODE ESSARSHIP.

DIVIDEND
On 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)

CONSTRUCTION
Essar is India's leading engineering, procurement and construction (EPC) contractor.
Essar has special expertise in marine construction and pipelines. Essar has laid 2,500 km
of pipelines and built 150 km of the prestigious Narmada canal. Essar is a well-known
name in the field of infrastructure construction particularly in the areas of ports, jetties
and roads. ESSAR CONSTRUCTIONS (INDIA) LIMITED operates as a subsidiary of
Essar Group.
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

LISTING
The company has not listed in any of the stock exchanges in India.

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

The Group’s decision to enter the financial services industry is in keeping with its vision
to 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 wide
array of financial services businesses like asset management and mutual funds, life and
general 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
LISTING
The company Essar Securities Ltd. is listed in Bombay Stock Exchange with the code
BSE-533149.

DIVIDENDS
The company has not declared any kind of dividends to share holders as it started its
operations in 2009.

MINES AND MINERALS

Essar Minerals Limited
To address Essar’s 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 and
experienced 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 are
associated 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.

REALTY
Essar Realty Limited
At Essar Realty has professionals drawn from varied disciplines, including architecture,
projects, finance and accounts, legal, corporate affairs, business development, and
strategy and corporate planning.
Currently,it has a presence in tier-I cities like Mumbai, Bangalore and Ahmedabad. It has
entered into one of India’s biggest realty transactions in Bandra-Kurla Complex,
Mumbai. It has also signed a Memorandum of Understanding (MoU) with the
Government of Gujarat, for a prestigious upcoming project called Gujarat International
Finance 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 the
end of FY 2010-11.

PUBLISHING
Paprika Media
Launched in 2004, Paprika Media is the Group’s 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 the
magazine. Time Out Mumbai was launched in September 2004 as a fortnightly priced at
Rs. 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 the
entertainment and lifestyle space.

AGRIBUSINESS
ESSAR AGROTECH LIMITED (EATL) is an established name in agricultural produce
catering 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 businesses
spanning diverse sectors, for over quarter of a century and has all the vigor of a young
company.
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 the
leading 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 Exotic
Vegetables.

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