20-10-2012, 03:37 PM
MATERIALS MANAGEMENT IN ESSAR STEEL
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Genesis and evolution
The Essar Group was founded in 1969, by brothers Mr Shashi Ruia and Mr Ravi Ruia. The
21st century for the Group has been all about consolidating and growing the businesses
The Ruia family’s origins are in Rajasthan. Sometime in the 19th century, they moved to
Mumbai and set up their own business. In 1956, Mr Nandkishore Ruia, father of Mr Shashi
Ruia and Mr Ravi Ruia, moved to Chennai, capital of the south Indian state of Tamil Nadu,
to begin independent business activities. He mentored his two sons in the intricacies of
business. When Mr Nandkishore Ruia passed away in 1969, the brothers laid the foundation
of the Group.
The Essar Group began its operations with the construction of an outer
breakwater in Chennai port. It quickly moved to capitalize on every
emerging business opportunity, becoming India’s first private company
to buy a tanker in 1976. The Group also invested in a diverse shipping
fleet and oilrigs, when the Government of India opened up the shipping
and drilling businesses to private players in the 1980s.
Then, in the 1990s, Essar began its steelmaking business by setting up
India’s first sponge iron plant in Hazira, a coastal town in the western Indian state of Gujarat.
The Group went on to build a pellet plant in Visakhapatnam, and eventually a fully
integrated steel plant in Hazira.
Through the 1990s, with the gradual liberalization of the Indian economy, Essar seized
every opportunity that came its way. It diversified its shipping fleet, started oil & gas
exploration and production, laid the foundation of its oil refinery at Vadinar, Gujarat, and set
up a power plant near the steel complex in Hazira. The construction business helped the
Group build most of its business assets. Essar also entered the GSM telephony business,
establishing India’s first mobile phone service in Delhi (branded Essar Cell phone) with
Swiss PTT as the joint venture partner.
The 21st century for the Essar Group has been all about consolidating and growing the
businesses, with mergers and acquisitions, new revenue streams and strategic
geographical expansion
8 | P a g e
The Essar spirit
The Essar Group has been foraying into new international markets, and exploring new
business areas in a bid to keep its entrepreneurial spirit alive, and to keep growing
VISION
we will be a respected global entrepreneur, through the power of positive action.
MISSION
We are committed to innovative growth, through our personal passion, reinforced by
a professional mindset, creating value for all those we touch.
Spirit
The Essar Group has changed significantly in recent years and continues to evolve, to keep
pace with the changing times. We have undertaken a sustainable journey of transformation
by foraying into new international markets, and exploring new business areas in a bid to
keep our entrepreneurial spirit alive, and to continue growing.
To mark the phenomenal growth witnessed over the last four decades, the Group recently
unveiled its new brand identity marking a very important milestone in its journey and
reflecting a new beginning for the Group. A new brand identity reinforces all the positives to
fulfil our vision to be a global entrepreneur through the power of positive action.
We aim to have a robust value system comprising positive attitude, positive action and
positive achievement.
We endeavour to create enduring value for customers and stakeholders in core
manufacturing and service businesses, through world-class operating standards, state-ofthe-
art technology and the ‘positive attitude’ of our people.