ESSAR GROUP
OF
COMPANIES
Prepared & Submitted By:
Diyora Ravi
Jobanputra Mary
An overview
Essar is one of
The Group takes pride in being a high-performance multinational organization, providing world-class services and products. Manned by a highly efficient and dynamic team of employees, the Group is growing stronger every day. A committed corporate citizen, the group provides unwavering support to the community as well as initiates various social and ecological drives that have a positive impact on society.
The Essar Group has a large investor base of approximately 1.4 million shareholders in its group companies- Essar Steel Ltd., Essar Shipping Ltd., Essar Oil Ltd. and India Securities Ltd.
ESSAR GROUP PHILOSOPHY
“The success of the Essar group is dependent on the development and
realization of the potential of each one of us.
The mindset of yesterday’s managers was to accept, compromise and keep things neat and orderly which leads to complacency. We should no be afraid to go against today’s currents because we know that tomorrow is ours. We must work on a vision of what business can become.”
- Shashi Ruia
Essar VISION & Mission
“To create enduring value for customers and stakeholders in core manufacturing and service businesses, through world-class operating standards, state-of-the-art technology and the 'positive attitude' of our people”
Vision
The vision of Essar Group can be defined by the seven E’s:
EFFECTIVENESS: doing the right thing at the right time.
EFFICIENCY: doing things the right way by conserving resources, being cost effective and simple.
ENTREPRENEURSHIP: creating and leveraging opportunities, taking initiative and innovations.
EMPOWERMENT: through self esteem, self respect, self worth and trust.
EDUCATION: learning, communicating and sharing information and knowledge.
ETHICS: having transparent business operations.
ENVIRONMENTAL HARMONY: adding value to society and creating sustainable development.
Essar- History
In the post-independence era,
The Ruia family had been in business and trading since 1800’s in Rajasthan. The lure of cotton trade in
The untimely demise of Shri Nand Kishore Ruia in 1969 thrust the mantle of family and business responsibilities on the Ruia brothers- Shashi (26 years) and
Over the years, Essar continued to grow in related areas of offshore construction, pipe lying, and contract drilling and marine transportation. It also moved in to steel, petroleum and telecommunication sectors.
Along these years, business contacts and associations with some of the most reputed companies all over the world paved the way for the Group to imbibe and assimilate substantial managerial skills and technical expertise. All along, the guiding motto was to seek a path of high growth, taking associated risks and turning each venture into a profitable business.
Management Team
Mr. Shashi Ruia | Chairman |
Mr. Ravi Ruia | Vice Chairman |
Mr. Prashant Ruia | Director |
Mr. Anshuman Ruia | Director |
Ms. Smiti Ruia | Director |
Mr. Rewant Ruia | Director |
Board of Directors
Mr. S. N. Ruia | Promoter Director |
Mr. V.N. Paradkar | Executive Director |
Mr. T. K. Nagraj | Director |
Mr. S.V. Venkatesan | Director |
Corporate Functions
Mr. Suresh Sundaram | Director – Corporate Aviation |
Mr. S. V. Venkatesan | Resident Director – Chennai |
Mr. J. Mehra | Resident Director – |
Mr. Madhu Vuppuluri | Resident Director – |
Mr. Sunil Bajaj | President – Corporate Affairs |
Mr. Adil Malia | President – Human Resource |
Mr. Vijay Mehra | Chief Information Officer |
Mr. V. Krishnan | Head–Corporate Communication |
Mr. Y. M. Shivamurthy | Head – Legal |
Mr. N. S. Paramshivam | Head – Forex & Treasury |
Mr. Dinyar M. Jivaasha | Head–Corporate Risk & Insurance Management |
FINANCE COMMITTEE
NAME |
POSITION |
Herman M. Schwarz | Chief Executive Officer |
John Scot Brunke | President, Chief Financial Officer and Director
|
Lee O. Waters | Executive Vice-President-Client |
R. Glen MacMullin | Director |
Ravikant N. Ruia
| Director |
Prashant S. Ruia
| Director |
Madhu Vuppuluri | Director |
The other members of financial Management are:
Manager, Finance, Essar Oil Ltd.
Amar Fadia,
Head of Long Term Finance
Head Customer Operations & Short-term finance
FUNCTIONS OF FINANCIAL COMMITTIE:
There are following functions that the financial committee has to performe to company.
Ø The stability of the financial system as a whole;
Ø Interactions between prudential supervision and control of systemic risks of payment and settlement systems;
Ø Crisis management coordination;
Ø Deposit guarantees and investor protection;
Ø Examining the content of bills, regulatory decrees or circulars which are of relevance to both institutions;
Ø The designation and management of joint activities – including managing staff assigned to these activities – in order to comply with the duty of cooperation as referred to in paragraph 1;
Ø All or part of the work and activities that an administrative body answerable to the Management Committee of one of the institutions undertakes on behalf of another institution;
Ø Coordinating the supervision of businesses, institutions and operations in accordance with the powers vested in the two institutions;
Ø Involvement in one or more of the cooperation bodies.
AUDIT COMMITEE
The Audit Committee is comprised of two directors, R. Glen MacMullin and Madhu Vuppuluri, neither of who serve as an executive officer of the Company and
The Audit Committee was comprised of three members,
1)
2) Peter D. Fitzsimmons
3) Josh S. Weston.
So, this is auditing committee of Essar including these three members and Mr.
FUNCTIONS OF AUDIT COMMITTIE:
· The integrity of Company’s accounting and financial reporting processes and of the audits of the financial statements of the Company;
· The Company’s compliance with legal and regulatory requirements;
· The outside auditor’s independence and qualifications; and
· The performance of the Company’s internal audit function and outside auditors.
The functions of the Audit Committee are oversight. The management of the Company is responsible for the preparation, presentation and integrity of the Company’s financial statements. Management and the internal auditing function are responsible for maintaining and applying appropriate accounting and financial reporting principles and policies and internal controls and procedures designed to assure compliance with accounting standards and applicable laws and regulations.
The outside auditors are responsible for planning and carrying out a proper audit and reviews, including reviews of the Company’s quarterly financial statements prior to the filing of each quarterly report on Form 10-Q, and other procedures. In fulfilling their responsibilities hereunder, it is recognized that members of the Audit Committee are not full-time employees of the Company and are not, and do not represent themselves to be, accountants or auditors by profession or experts in the fields of accounting or auditing.
As such, it is not the duty or responsibility of the Audit Committee or its members to conduct “field work” or other types of auditing or accounting reviews or procedures, and each member of the Audit Committee shall be entitled to rely on (i) the integrity of those persons and organizations within and outside the Company from whom it receives information and (ii) the accuracy of the financial and other information provided to the Audit Committee.
ORGANIZATIONAL CHART
Companies Under Essar Group
1) ESSAR STEEL
2) ESSAR OIL
3) ESSAR SHIPPING & LOGISTICS
4) ESSAR POWER
5) ESSAR TELE HOLDINGS
ESSAR STEEL
Essar steel is the largest integrated steel producer in
The company operates and 8 MTPA Beneficiation plant at Bailadilla, Chattisgarh, where some of the world’s richest deposits of iron ore are available. The iron ore slurry is pumped to Essar Steel’s pelletisation plant in Visakhapatanam through a 267 Km long slurry Pipeline, the second longest in the world. The 8.0 MTPA pelletisation plant at Visakhapatanam provides the raw material for the steel plant at Hazira.
The Essar Steel complex at Hazira in
The Essar Group also operates a 400,000 TPA cold rolling complex with a galvanizing line of 150,000 TPA in Indonesia, making it the largest private steel company in Indonesia.Essar Steel produces highly customized value added products catering to a wide variety of products segments including roofing, automobiles, oil and gas, shipbuilding, fabrication and white goods where they compete with the best players. in international markets. Essar Steel is
Board of Directors:
|
The company caters to its small volume customers through an online steel vortal www.clickforsteel.com. Essar Steel’s ’24-carat steel’ brand is one of the most trusted brands in the steel industry.
ESSAR OIL
Essar Oil Ltd. (EOL) is a fully integrated oil company of international size and scale, covering the entire value chain from exploration and production to refining and retailing of petroleum products. It is the first private sector company in
Board Of Directors
SR. NO. | POSITION | NAME OF DIRECTORS |
1 | Chairman | Shashi Ruia |
2 | Wholetime Director | Suresh Mathur |
3 | Managing Director | Naresh Nayyar |
4 | Director | |
5 | Director | Anshuman S Ruia |
6 | Non Executive Director (Upto | Awadhesh N Sinha |
7 | Director(Nominee of IDBI) | G Goswamy |
8 | Deputy Managing Director and Director (Finance) (upto | Hari L Mundra |
9 | Director | K |
10 | Director(Nominee of LIC) | K Sridhar |
11 | Director(Nominee of ICICI Bank Limited) | N |
12 | Director | Prashant Ruia |
13 | Director | R Jayaraman Iyer |
14 | Director (Nominee of Debenture Trustees – WITCO) | S |
15 | Director (Nominee of IFCI Limited) | Sanjeev Ghai |
Lines of business consists of –
The exploration and production division of the company owns the exploration blocks of Coal Bed Methane in Mehsana,
The Refining division consists of a projected capacity of 12.5 MMTPA petroleum refineries at Vadinar in
The products produced at present are- Furnace oil, Naphtha, Kerosene, LPG and Aviation Turbine Fuel.
The Marketing division consists of:-
§ Retail focus on Highways, rural and semi-rural areas in
§ Premium fuel brands
§ Institutional sales through Bulk marketing.
Essar Oil has 1,210 outlets in the country and another 800 are at various stages of construction. It also plans to increase the retail outlets to 2500 by the first quarter of next year. Moreover Essar is a bulk exporter of petroleum products, exporting a large proportion of its finished products.
Essar Oil plans to transport fuel for retail outlets through the Railways to reach places as far as Rewadi in Haryana. The fuel requirement of outlets in the eastern and the southern states will be outsourced from the current suppliers. Currently, Essar Oil's Vadinar refinery supplies 20,000 tones of MS and 40,000 tones of diesel for outlets in Gujarat, Maharashtra, Madhya Pradesh and Rajasthan. The refinery also exports HSD.
ESSAR SHIPPING & LOGISTICS
Essar Shipping & Logistics Ltd. (ESLL) is one of the world’s leading integrated sea logistics companies, with a special focus on transportation solutions for the global energy business. A strong management team of experienced marine professionals steers the company, maintaining customer focus, world-class operations, an impressive safety record and a consistent financial performance. Our fleet accounts for almost 14% of India’s shipping fleet and we own the country’s largest VLCC (Very Large Crude Carrier), which is also India’s first double hull, double bottom VLCC.
The company owns 27 vessels including two double hull, double bottom VLCCs. It has a diverse fleet comprising crude carriers and product tankers, Bulk Carriers, Mini Bulk Carriers, Handymax and Barges. The company has unblemished track record in transporting crude oil across the globe.
BOARD OF DIRECTORS
SR.No. | NAME OF DIRECTORS | POSITION |
1 | S K Poddar | Independent Director |
2 | Sanjay Mehta | Managing Director |
3 | Anshuman S Rula | Director |
4 | | Vice Chairman |
5 | Shashi Ruia | Chairman / Chair Person |
6 | A R Ramakrishnan | Whole Time Director |
7 | V Ashok | Whole Time Director |
8 | | Independent Director |
9 | R N Bansal | Independent Director |
10 | D J Thakkar | Independent Director |
11 | K V Krishnamurthy | Independent Director |
12 | Rewant R Ruia | Director |
The shipping business has been reorganized into three different companies- shipping (Essar Shipping), terminalling (Vadinar Oil Terminal Ltd.) and domestic and international logistics (Essar Logistics Ltd.) to bring greater focus and thrust in each of these areas. All these companies are subsidiaries of Essar Shipping & Logistics Ltd.
The company has set up port and terminal facilities to handle the receipt, storage and dispatch of crude oil and petroleum products at Vadinar,
A new deep water berth at Hazira is coming up and will handle bulk cargo up to 24 million tones in two phases, up from the current handling capacity of Hazira of 8 tones. The objective of the bulk berth is to provide the steel plant at Hazira direct access to imported raw materials and also facilitate the export of finished steel products. In doing so, the dependence of the plant on present lighterage operations and the need for monsoon stockpiling of raw material will be minimized, thereby reducing the effect of weather on the movement of cargo.
ESSAR POWER
Essar is
The plant's design and construction are world class, as confirmed by independent international consultants. All equipment comes from the world's best suppliers such as General Electric, Siemens and Honeywell. The plant is highly efficient and flexible. Both plant availability and the plant load factor are high and have been improving annually. Being
BOARD OF DIRECTORS
SR.NO. | NAME OF DIRECTORS | POSITION | |
1 | S | Chairman | |
2 | Ravikant Ruia | Vice chairman | |
3 | Mr. A. K. Srivastava | Managing Director | |
4 | Mr Krishnan | Director | |
5 | Mr. Anshuman Ruia | Director |
ESSAR TELE HOLDINGS
During 1994-1997 the company launched GSM services in
Essar Group (through Essar Spacetel) independently acquired UAS licenses for 7 North-East circles and in July 2005 the Essar Group acquired BPL Mobile companies. In February 2005 it consolidated all JV operating licenses in to single holding company - Hutchison Essar Ltd (HEL). Then the BPL Mobile companies and Essar Spacetel were rolled into Hutchison Essar Ltd.
Hutchison Essar, a joint venture between Essar and Hutchison Whampoa plays a major role in
On
Essar Telecom Retail Ltd. is
Other Lines of business of Essar Group consists of the following:-
Essar Agrotechs Ltd. | India Securities Ltd |
Aegis BPO services Ltd. | Essar construction Ltd |
Futura Travels Ltd. | Essar Projects Ltd. |
And many more:
But one thing that is common in all the companies of Essar Group is the high level of synergy and co-ordination maintained by all of them.
BOARD OF DIRECTORS
SR.No. | NAME OF DIRECTORS | POSITION | |
1 | | chairman | |
2 | Chief Executive Officer and Independent Director | ||
3 | Chief Executive Officer of Hutchison Telecom | ||
4 | Managing Director and Executive Director | ||
5 | Deputy Managing Director | ||
6 | Chief Marketing Officer |
ESSAR CONSTRUCTION
Essar Constructions (India) Limited / EC(I)L formerly known as Essar Constructions Ltd. (ECL) was one of the first companies to be started by the group and has close to forty years’ experience in diverse construction related activities. Essar Constructions (
As one of
A history of expertise
The Company honed their skills as the turnkey contractor for most of the Essar Group’s world-class projects and supporting infrastructure, constructing most of the group’s current asset base of US$ 6 bn (Rs. 270 billion). That includes a 3.4 MTPA sponge iron plant, a 2.4 MTPA steel mill and a 515 MW power plant at Hazira, a 4 MTPA pelletisation plant in
division into Essar Projects Ltd. in 1990 and then into ECL and finally into EC(I)L.
BOARD OF DIRECTORS
SR. NO. | NAME OF DIRECTORS | POSITION |
1 | Shri. S. N. Ruia | Promoter Director |
2 | Shri. Rewant Ruia | Director |
3 | Mr. V. N. Paradkar | Executive Director |
4 | Mr. T. K. Nagraj | Director |
5 | Mr. S. V. Venkatesan | Director |
Special strengths
Simultaneously, the company grew into a leading EPC contractor for other customers, both domestic and international. Here too, both our exposure and our expertise are wide ranging. Apart from our EPC capability in oil and gas, power and steel, marine construction is one of our special strengths. We have a unique capacity for underwater rock blasting and dredging. We also have significant skills in constructing irrigation canals, siphons and bridges. ECIL has a special expertise in pipelines for oil, gas and water as the only Indian company with over 20 years of experience in cross-country, onshore and offshore pipelines, from construction to commissioning. We have laid 2,500 km of pipelines and built 150 km of the prestigious
Equally noteworthy are our long-term relationships with over 20 strategic partners, including multinational construction and engineering companies from around the world. For example, currently a consortium of ECIL, Stroystransgaz of Russia is the EPC contractor for the 269 KM Bailadilla-Vizag slurry pipeline. This is world's second longest slurry pipleine. Along with UEM of Malaysia, it is also building a 200-km, four-lane highway in Karnataka worth US$ 156 m (Rs. 720 crore).