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Essar Group

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Essar Group
Company typePrivate
IndustryConglomerate
Founded1969; 55 years ago (1969)
Founder
Headquarters,
Area served
Worldwide
Key people
Products
RevenueIncrease US$14 billion (2020)[1]
Number of employees
7,000+[1]
Subsidiaries
Websitewww.essar.com

Essar Group is an Indian multinational conglomerate company, founded by Shashi Ruia and Ravi Ruia in 1969. As Essar Global Fund Limited (EGFL), the company controls a number of assets across 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, IT, food retail). EGFL holds nearly 100% stake in all its investments, $1.5 billion net profit or 20,000 employees.[2]

Significant Essar Group subsidiaries 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 construction of an outer breakwater for Chennai port, thus laying the foundation of Essar Group.[3]

In 1976, Essar purchased India's first private tanker for US$2 million.[4]

In 1995, Essar Group entered the telecom sector with a Swiss PTT joint venture partnership branded as the Essar Cellphone.[5] In the same year, Essar Group started GSM operations from Delhi.[6] 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.[7]

In 2007, Essar owned The MobileStore, an Indian chain of telecom and mobile phone retail stores.[8][9]

In 2017, Essar Steel India Ltd. (ESIL) was on the defaulter's list disclosed by the Reserve Bank of India.[10]

In November 2019, ArcelorMittal won approval from Supreme Court to takeover Essar Steel and pay the creditors with equal rights.[11]

In December 2021, Essar has set up Vertex Hydrogen under UK's HyNet project with Progressive Energy to help drive energy transition in the UK.[12]

Business verticals

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

Acquisitions

In 2003, Essar Group acquired Aegis Communication and spread across 13 countries.[13] In 2014, Essar did the part sale of Aegis USA Inc. with annual revenue of $400 million to Teleperformance[14] and in 2017 Essar left the outsourcing business by selling Aegis’ operations to Capital Square Partners (CSP).[15]

In 2011, Essar Energy purchased Stanlow Refinery in North West England for $350 million.[16] 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.[17]

AGC Networks, a wholly-owned subsidiary of Essar Group, acquired Black Box Corporation in 2019.[18]

Initiatives

During COVID-19 pandemic, Essar Foundation organized vaccination drives,[19] and provided meals to needy people.

See also

References

  1. ^ Jump up to: a b "Corporate profile - About us - Essar". Essar Group. 23 June 2020. Archived from the original on 10 August 2013. Retrieved 11 July 2020.
  2. ^ "Essar Group - Company Profile and News". www.bloomberg.com. Retrieved 26 September 2020.
  3. ^ "Quest to Save Essar: As debt hits Rs 1.38 lakh crore, Ruias look to recast group". www.businesstoday.in. Retrieved 3 August 2022.
  4. ^ "Essar Group Ltd". www.encyclopedia.com. Retrieved 3 August 2020.
  5. ^ "Quest to Save Essar: As debt hits Rs 1.38 lakh crore, Ruias look to recast group - BusinessToday". Retrieved 5 August 2022.
  6. ^ "Why the Essar Group made it in telecom but the Tatas couldn't - Mint". Retrieved 5 August 2022.
  7. ^ "Hutch to ditch pink for Vodafone's red - The Economic Times".
  8. ^ "Essar plans to set up 2,500 MobileStore outlets in 3 years - Economic Times". economictimes.indiatimes.com. 7 December 2007. Retrieved 20 July 2022.
  9. ^ "The MobileStore has won the Retailer of the Year award". www.oneindia.com. Retrieved 20 July 2022.
  10. ^ "RBI tells banks to file cases against 12 big loan defaulters in a month". Retrieved 5 August 2022.
  11. ^ "Supreme Court paves way for ArcelorMittal's takeover of Essar Steel in ₹42,000 crore deal". Retrieved 5 August 2022.
  12. ^ "Essar sets up Vertex Hydrogen to help drive energy transition in UK". energy.economictimes.indiatimes.com.
  13. ^ S, Rajalakshmi (27 November 2017). "Essar Group sells Aegis to Capital Square Partners for $300 million". www.thehindubusinessline.com. Retrieved 1 August 2022.
  14. ^ "Aegis completes sale of US arm to Teleperformance". The Economic Times. 8 August 2014. Retrieved 1 August 2022.
  15. ^ Dhanjal, Swaraj Singh (3 April 2017). "Essar sells Aegis BPO to Capital Square Partners". Livemint. Retrieved 1 August 2022.
  16. ^ "India's Essar buys Shell's Stanlow refinery - Reuters". Reuters.com. 29 March 2011. Retrieved 4 August 2022.
  17. ^ Das, Debabrata (3 April 2016). "Essar Oil UK turns around Stanlow Refinery - The Hindu BusinessLine". www.thehindubusinessline.com. Retrieved 4 August 2022.
  18. ^ "AGC Networks completes Black Box Corporation acquisition". www.enterpriseitworld.com. Retrieved 19 November 2022.
  19. ^ "CSR: Essar vaccinates over 2,000 employees across locations so far". www.indiacsr.in. Retrieved 20 November 2022.