DOW 35, CMC Crypto 1, Read full article. The company has submitted planning applications for the project, it said in a statement. Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting.
Latest stories. Yahoo Finance. Yahoo Life Shopping. Associated Press. The Daily Beast. Business Wire. We will grow and lead. We will focus our energy and entrepreneurial spirit, to pursue measured opportunities, conduct our business with integrity, and earn respect by delivering consistent value. We are building a global business. We will be a respected household name, in India and internationally, in our core industries and in new promising markets from services to retail.
We are driven by a desire to do better. We will think with the heart and the head, retaining the passion and imagination that has driven us from the very beginning. EGFL invests with a sense of active ownership, which involves direct engagement with the management of the respective businesses. The portfolio companies have aggregate revenues of about USD 14 billion and employ over 7, people.
It monitors and manages the entire portfolio of investments owned by EGFL. Essar Capital is governed by its board of directors and its responsibilities as investment manager of EGFL include:.
We are Essar Capital. We are a global investor, building and nurturing a portfolio of world-class companies. We are unlocking investments for growth. We are Essar Global Fund. We are Essar Oil UK. With 72 sites already operational, we have ambitious plans to further grow our national network. A global portfolio of unconventional hydrocarbon acreages with a resource base of 15 TCF of gas, offering a more eco-friendly energy alternative. We are unlocking a greener future. We started out as the first private sector company to enter power generation in India.
We are unlocking a brighter future. We are Essar Power. By unlocking new age logistics, we are contributing to the vision of port-led development in India. We are Essar Ports. We are Essar Shipping.
We are Essar Projects. We are Essar Foundation. The Essar Group was established by Mr. Shashi Ruia and Mr. Ravi Ruia in , in South India. The company began its operations with the construction of an outer breakwater in Chennai port, an order worth Rs 2.
Until then, only foreign construction companies would undertake a project of this magnitude and complexity. Following this maiden contract, Essar bagged projects at every major port in the country, including Tuticorin, Mangalore, Goa, Kakinada and Nhava-Sheva in Mumbai. This was a time when the movement of petroleum products along the Indian coast was the monopoly of foreign-flag vessels, and no shipping companies in India would venture into this business as it was considered risky and involved the management of advanced technology.
For SBI, the proposal posed a real challenge since it involved a first-of-its-kind transaction for the bank as well! Eventually, the loan was sanctioned, with a repayment structure that was unique for its time. It involved buying an asset against the securitisation of receivables. Around this time, Bombay High had just started producing oil, which needed to be transported onshore.
Later, it went on to buy a specialized pipe-laying barge to undertake this kind of activity. The construction and shipping businesses grew rapidly and Essar gradually established itself as a leading marine and industrial construction company. In the early s, when the government opened up the ownership and operation of Offshore Supply Vessels OSV to private Indian companies, Essar was one of the first to enter the fray.
The aim was to build a diverse fleet that could help hedge any downturns in the business. As a result, while most shipping companies in India were making losses in the 80s, Essar was reaping profits.
Around the mids, the Government also opened up the contract drilling business to Indian private companies. It owned 11 land rigs, one offshore rig and a drill ship. Until the mids, Essar was focused on the service sectors of construction and shipping, which were prone to cyclical volatility. In order to lend stability to the Group, Essar planned to enter manufacturing. The challenge was to select a sector that was an import substitute, with a product that had long-term demand and served a national purpose.
India in those days had secondary steel makers who used imported scrap to produce steel. Scrap prices were volatile and had to be purchased with precious foreign exchange.
Moreover, the quality of scrap was also not always up to the mark. The only alternative to scrap was sponge iron, but there were no sponge iron manufacturers on the west coast of India despite a large number of users. This prompted Essar to start manufacturing sponge iron. Again, breaking the tradition of locating manufacturing facilities close to the mines, the Company chose to build the plant at Hazira, a port on the west coast of India.
Hazira was also the land fall point for gas from the Bassein gas field in Bombay High. The sponge iron plant became a hugely successful venture. Essar followed up this success, by setting up a pellet plant in Visakhapatnam as part of its backward integration strategy.
This was not sufficient for the business to achieve and sustain long-term growth. So Essar set up steel manufacturing facilities at Hazira with the objective of gaining value addition. In the early s, the Indian economy was liberalised and many industries that were hitherto monopolised by public sector companies were opened up to the private sector.
Not one to lag behind, Essar seized every opportunity that came its way. The experience in contract drilling prompted the Group to venture into the upstream in the Oil sector—i.
Essar also entered the power and telecom sectors as and when they were opened up to private participation. A slew of projects in each of these businesses were initiated in the s when the Indian economy was booming.
The sponge iron plant, initially set up with a capacity of 0. Essar Steel was now a producer of flat steel and joined the select group of Indian companies that produced this commodity. When Essar conceived the project, international steel prices were in the region of USD per tonne. When commercial production began in , this had fallen to USD per tonne. Worse was to follow. Essar had financed the project through a combination of rupee debt and Floating Rate Notes FRN —both on a five-year tenure.
This arrangement was made for two principal reasons: One, Indian financial institutions were not in a position to lend for a longer term; two, raising foreign currency debt beyond five years was not permitted at that time. The FRNs were due for refinancing in , the year that marked the end of the five-year term.
Essar began the process of refinancing one year in advance, in May The company received underwriting commitments from Chase and Lehman Brothers. Just before the issue was launched, India tested the nuclear bomb at Pokhran. This led to financial sanctions being imposed on India and Indian companies no longer had access to foreign funds.
Left with no option, Essar was forced to default on the FRN loan, despite having made concrete plans for refinancing. Simultaneously, global steel prices started tumbling and reached a historic low of USD per tonne. At that price, steel plant operations were simply unsustainable.
Many steel companies at that time went down under. Top-lines crashed, while interest rates were at their highest ever Prime Lending Rates had touched 17 percent. Hydrogen Central brings to you news and market intelligence insights on the Hydrogen industry to support your strategic moves and help you stay ahead of the curve.
Access is and will always be free of charge. We love meeting interesting people and making new friends. October 14, Add comment. The company has submitted planning applications for the project, it said in a statement.
Essar Oil Investment UK. You may also like. October 19, October 12, October 7, Most Read. Get our LinkedIn updates! Join our weekly newsletter! Please enable JavaScript in your browser to complete this form.
Follow us Don't be shy, get in touch. Most popular.
0コメント