Essar

Essar

Essar is a conglomerate with investments in the sectors of steel, energy (oil & gas and power), infrastructure (ports, projects & concessions) andservices (shipping, telecom, realty and outsourcing and technology solutions). With operations in more than 25 countries across five continents, Essar employs over 73,000 people and has revenues of $39 billion.

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.

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 1987, 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.