Essar Group

Infobox_Company
company_name =
company_
company_type = Corporate
foundation = Ruias family
company_slogan = "A positive attitude"
location = flagicon|IND Keshavrao Khadye Marg, Mahalaxmi, Mumbai, India
key_people = flagicon|IND Shashi Ruia, Chairman
Ravi Ruia, Vice Chairman
Prashant Ruia, Smriti Ruia, Director
Anshuman Ruia, Rewant Ruia, Director
industry = Shipping, Steel, Communications, Construction, Oil, Power, Etc.
products = Mobile networks, Steel, Etc.
revenue = profit US$ 5.83 billion (2007)
homepage = [http://www.essar.com Essar Group]

The Essar Group (signifying the initials S and R) is an India-based diversified corporation with interests in telecommunications, shipping, steel, construction, power and oil. The group is one of the fastest growing conglomerates in Asia with an estimated market capitalization of US$25 billion and revenues exceeding US$5.8 billion in 2007.

In 2007, Essar recorded the fourth highest increase in market capitalization among all Indian companies behind Tata Group, Reliance Industries and Anil Dhirubhai Ambani Group. Major companies which form a part of the group are Vodafone Essar, Essar Shipping, Essar Oil and Algoma Steel (part of Essar Steel). The group is headed by Chairman Shashi Ruia and Vice-Chairman Ravi Ruia.

Essar Steel

Essar Steel is one of India's top 10 steel manufacturers. In April 2007, Essar purchased Canada-based Algoma Steel for US$ 1.63 billion and United States-based Minnesota Steel for an undisclosed amount. As part of the deal with Minnesota Steel, Essar will invest US$ 1.65 billion to build a steel plant in northern Minnesota. The plant will be the first in North America to have iron-ore mining, processing and steelmaking on a single site. [ [http://www.bloomberg.com/apps/news?pid=20601087&sid=ap6CZvSHd.Ug&refer=home Investment in Minnesota] ] After the acquisition of these firms, Essar Steel became India's fourth largest steel manufacturer after Tata Steel, Steel Authority of India Limited and Jindal Steel. The Minnesota state governor briefly opposed funding the project due to Essar's ties to Iran until given assurances that laws regarding trade with Iran will be followed. [ [http://en.wikinews.org/wiki/Minnesota_Governor_opposes_state_funds_to_Iran-tied_company Minnesota Governor opposition to Essar] ]

The group has eneterd into the Retail of Telecom with its Brand "The Mobile Store ". It is a leading brand in Telecom Retail and has more than 500 outlets across the country and running more under the supervision of CEO , Rajiv.

A new arm has been set up by the Essar Group for retail sales of steel, directly to the consumers, known as Steel Hypermart. This is the first such concept of "steel retailing" in the country (it is B2C).

Essar Steel is starting a new steel plant in Vietnam, expected to be operational by 2010.

In a venture to broaden its base in US, Essar is buying another American steel company Esmark for 778 million dollars. [ [http://news.bbc.co.uk/2/hi/business/7375984.stm Esmark puchase] ]

With reference to the news items appearing in a leading financial daily titled "Essar Oil Promoters to hike stake" wherein it has been mentioned that "The Essar Group has tried to delist two other listed companies - Essar Shipping and Essar Steel earlier this year without much success", Essar Steel Ltd has clarified about the following facts:

- The reverse book building process under the delisting offer has already been completed and the discovered price is Rs 48/- per equity share.

- The entire process has been carried out in compliance with the relevant SEBI Laws and Stock Exchange Guidelines.

- The Company has already applied for to BSE and NSE for delisting of the equity shares.

- Upon receipt of approval for delisting the shares will not be available for trading on the both the stock exchanges.

- As required under SEBI Delisting Guidelines Promoters of the Company will continue to buy shares from the members for a period of six months at the discovered price of Rs 48 per equity share after the delisting approval.

Source :BSE India

External links

* [http://www.essar.com/ Official website]

References