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GROUP MEMBERS
SR.NO
NAME ROLLNO.
1 HINESH GOGRI 123
2 POONAM DUMBRE 144
3 HARSHADA SAWANT
4 BHOOMIT JAIN 160
Index
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Sr. No. Particulars
1
2
3
4
5
6
7
8
9
10
11
12
Acknowledgement
Declaration
Essar group
History of Essar group
Corporate profile
Businesses
Essar in oil and Gas
Export of oil and petroleum product
Import of oil & petroleum product
Questionnaire
Conclusion
Bibliography
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History of Essar Group Ltd
The Ruia familys 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 stateof 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 Indias firstprivate 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 Indias 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 inHazira. The construction business helped the Group build most
Acknowledgement
We take this opportunity to express our
sincere gratitude towards all those whodirectly and indirectly assisted us increating this project .We are thankful toMrs. Sindhu mam who provide anopportunity to write this project. Hersupportive nature and technical assistancemade us comfortable at every step.
We express our sincere thanks toevery member ofEssar group especiallyMr. Jagdish Narwekar for providing ustechnical Knowledge and lending theirvaluable time to us.
Last but not the least, we are thankfulto all those who directly and indirectly
helped us in completion of this work.
Type
Public
(BSE: 500630)
(BSE: 500134)
Industry Conglomerate
Founded 1969
Founder(s)Shri.Shashi Ruia
Shri.Ravi Ruia
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of its business assets. Essar also entered the GSM telephony
business, establishing Indias first mobile phone service in Delhi
(branded Essar Cellphone) 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.
Essar Group Ltd. is one of India's leading privately owned, diversified
conglomerates, with a total asset base of more than $5 billion and annualrevenues of INR 100 billion ($2.2 billion). Whereas Essar Group itself is
controlled by the founding Ruia family, much of the company's diversified
holdings fall under its publicly listed subsidiaries.
The company's subsidiaries include Essar Steel, the second largest private sector
steel company in India; Essar Oil, a fully integrated oil and gas producer, and
the firstprivate sector Indian company to enter the market since its
liberalization in the early 1990s; Essar Power, which operates a 515 megawatt
(MW) natural gas power plant in Hazira, with plans to increase its total output
to 2,500 MW by the end of the 2000s; Essar Shipping, the group's original
activity, the leading shipping group in India, with 30 vessels, including India's
first Very Large Crude Carrier (VLCC) tanker, representing some 14 percent of
the country's total fleet;
Essar Teleholding, which, through its joint venture Hutchison Essar is the
second largest cellular telephone provider in India; and Essar Construction, a
leading construction company in India. Other Essar holdings includesubsidiaries involved in magazine publishing, business process outsourcing,
information technology, and flower and vegetable production. Essar Group is
led by Shashi and Ravi Ruia, sons of the company's founder.
http://en.wikipedia.org/wiki/Vice-Chairmanhttp://en.wikipedia.org/wiki/Vice-Chairmanhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Essar_Steelhttp://en.wikipedia.org/wiki/Essar_Oilhttp://en.wikipedia.org/wiki/Essar_Hypermarthttp://en.wikipedia.org/wiki/The_MobileStorehttp://en.wikipedia.org/wiki/Essar_Oilhttp://en.wikipedia.org/wiki/Essar_Hypermarthttp://en.wikipedia.org/wiki/The_MobileStorehttp://en.wikipedia.org/wiki/Essar_Hypermarthttp://en.wikipedia.org/wiki/The_MobileStorehttp://en.wikipedia.org/wiki/Websitehttp://www.essar.com/http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Vice-Chairmanhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Essar_Steelhttp://en.wikipedia.org/wiki/Essar_Oilhttp://en.wikipedia.org/wiki/Essar_Hypermarthttp://en.wikipedia.org/wiki/The_MobileStorehttp://en.wikipedia.org/wiki/Websitehttp://www.essar.com/8/4/2019 Essar Final
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Chronology
Key Dates
1956 Nand Kishore Ruia moves to Chennai and establishes the Essar Group as
a trading company.
1966 The company enters the stevedoring market for the region's iron ore mining
industry.
1969 After Ruia's death, his sons Shashi and Ravi become heads of the company
and launch a long diversification drive, starting with an entry into the construction
market, through Essar Construction, and the shipping industry, through Essar
Bulk Cargo Carriers.
1975 The company establishes Essar Gujarat (later Essar Steel) to produce
sponge iron ore.
1976 The company establishes Essar Investment as a holding for the Ruia
family's diversified investments.
1983 The company acquires Karnataka Shipping Corporation.
1984 Essar Bulk Cargo Carriers is renamed as Essar Shipping Limited (ESL) in
1984.
1989 The company establishes Essar Oil & Exploration with plans to develop
integrated oil services.
1992 The South India Shipping Corporation is acquired.
1993 The company wins exploration bids for fields in Rajasthan and offshore
Bombay; construction of a 510 megawatt (MW) power plant is launched in Hazira.
1995 The company enters the mobile telecommunications market.
1996 The company creates an alliance with Sterling Cellular Limited and rolls out
the Essar Cellphone brand.
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1999 Essar Group is forced to default on loan payments.
2001 Essar Oil begins developing its own service station network; Essar Steel
forms a partnership to build a cold-rolled steel plant in Indonesia.
2002 The company merges cellphone operations into the Hutchison Essar jointventure.
2005 Hutchison Essar acquires BPL's cellular phone operations in India.
2006 Essar buys a new Very Large Crude Carrier (VLCC) tanker
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
Our vision
We will be a respected global entrepreneur, through the power of
positive action.
Our mission
We are committed to innovative growth, through our personal
passion, reinforced by a professional mindset, creating value for all
those we touch.
Our spirit
The Essar Group has changed significantly in recent years and
continues to evolve, to keep pace with the changing times. We haveundertaken 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 fulfill our vision to be a global entrepreneur through the
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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-of-the-art technology and the
positive attitude of our people.
Corporate profile
Moving beyond Indian frontiers, the Essar Group continues to grow
internationally through focused strategies
The Essar Group is a multinational conglomerate and a leading player in the
sectors of steel, oil and gas, power, communications and business process
outsourcing (BPO), shipping, ports and logistics, projects, and minerals. With
operations in more than 20 countries across five continents, the group employs
70,000 people, with revenues of USD 15 billion. With manufacturing facilities
in India, Indonesia, Canada and North America, Essar Steel is a global steel
producer with a capacity of 14 million tonnes. The company is fully integrated,
from iron ore mining to steel retail. It operates specialized plants to manufacture
value-added products like plates and pipes. It is also a leader in cold rolled,
galvanized and pre-coated steel products. Essar Steel operates a global steel
retailing and processing network that spans India, Indonesia, UAE and the UK.
Essar Oil is an end-to-end player in the oil and gas sector \ from exploration to
refining to retail. It owns a portfolio of 17 onshore and offshore oil and gasblocks in Asia, Africa and Australia. The company is a leader in the exploration
of coal bed methane gas. Essar Oil has a 300,000 barrels per stream day (bpsd)
refinery at Vadinar in Gujarat, India. This refinery is being expanded to 405,000
bpsd, with the complexity being enhanced by almost double. The company has
a 50 percent stake in an 80,000-bpsd refinery in Kenya. Essar Oil is also among
the leading oil retailers in India with over 1,370 outlets, which is being
expanded to 1,700 outlets.
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Essar Power is among Indiafs top private sector power producers with a current
generation capacity of 1,600 MW spread across five power plants in India and
Canada. This capacity is being expanded to 6,100 MW by 2012, and to 11,470
MW by 2014, through the addition of seven new power plants in various parts
of India. The combined assets of Essar Power and Essar Oil constitute Essar
Energy plc, a company that was listed on the London Stock Exchange in 2010
following a highly successful Initial Public Offer (IPO), the second largest
overseas IPO ever floated by a company of Indian origin. Essar Energy is part
of the FTSE 100, UK's top 100 companies by market capitalization.
Essar Communications is a global player in the communications sector with a
presence in telecom services (over 120 million subscribers in India, Kenya,
Uganda and Congo), as well as consumer durables and IT retail (over 1,200
outlets). In India, Essar Communications has a 33 percent stake in Vodafone
Essar, one of the countryfs largest telecom players.
Aegis is Essar's BPO arm. It serves Fortune 500 companies across 10 countries
through 47 delivery centers. It has launched many innovative initiatives in the
services sector, the latest being the Institute of Customer Experience
Management, which grooms managers for the services industry.
Essar Shipping Ports & Logistics is an integrated logistics solution provider
with a presence in shipping (25 vessels servicing steel and oil and gas majors),
ports and terminals (cargo-handling capacity of 76 million tonnes that will
expand to 158 million tonnes), and oilfield drilling services (fleet of 13 rigs
serving oil and gas exploration companies), as well as logistics. The company is
among India's largest port operators and is adding 12 new ships as well as two
new jack-up rigs to its already diversified fleet
Essar Projects has world-class engineering, procurement and construction
(EPC) capabilities that have helped build all of Essar's industrial assets in India
in the sectors of steel, oil and gas, power, and ports and terminals. The
company, which is among India's top three EPC contractors, is increasingly
using its expertise to execute large external projects across the world.
Essar Minerals owns a growing portfolio of iron ore and coal mines in India,
Indonesia, Mozambique and the USA. It also has an iron ore prospecting license
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in Brazil and various states in India. The company has access to over 1.6 billion
tonnes of iron ore reserves and 450 million tonnes of coal reserves.
Board of directors
Listed here are the promoter directors of the Essar Group. Each
company under the Group is independently run by a team of
professionals
Promoter Directors
Mr Shashi Ruia
Chairman
Essar Group
Mr Ravi Ruia
Vice Chairman
Essar Group
Mr Prashant Ruia
Group Chief Executive
Essar Group
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Mr Anshuman Ruia
Promoter Director
Essar Group
Ms Smiti Kanodia
Promoter Director
Essar Group
Mr Rewant Ruia
Promoter Director
Essar Group
Management team
Mr J Mehra Director, Essar Group
Mr Malay Mukherjee CEO, Steel Business Group
Mr Naresh Nayyar CEO, Energy Business Group
Mr Rajiv Agarwal MD & CEO, Essar Shipping Ports &
Logistics Ltd.
Mr Rajiv Sawhney CEO, Telecom Business Group
Mr Aparup Sengupta CEO, Aegis Ltd.
Mr Alwyn Bowden CEO, Projects Business Group
Mr Pradeep Mittal CEO, Minerals & Mining Business
Mr Vikash Saraf Director, Strategy & Planning, Essar Group
Mr V Ashok CFO, Essar Group
Mr Adil Malia Group President, Human Resources
Mr SM Lodha Group President, Assurance and Cost Control
Mr Sunil Bajaj Head, Corporate Relations Group
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Businesses
Essar Global Limited is a diversified business corporation with a
balanced portfolio of assets in the manufacturing and services sectors
of :
Steel : Essar Steel is a global producer of steel with a footprint
in India, Canada, USA, the Middle East and Asia.
Energy: Essar Energy is a world-class, low-cost, Indian
focused energy company with an established track-record and
US$8 billion of assets.
Oil and Gas: Essar Oil operates a fully integrated oil company
of international size and scale
Power: Essar Power, Indias second largest power generation
company in the private sector, has a total installed generationcapacity of 1,600 MW.
Communications: Essar Telecom Infrastructure is one of the
largest independent telecom infrastructure service
provisioning companies in the country.
Shipping ports and logistics and : Essar is an integrated
logistics solution provider with investments in
ports and terminals, logistics services, sea
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transportation and oilfield drilling services
Construction :Essar Projects Limited drives our businesses in
the construction sector. We own one of Asias largest banks of
sophisticated construction equipment
We believe in seizing opportunities to expand our reach.
Essar in oil & gas
Essar Oil operates a fully integrated oil company of international size
and scale
Essar Oil's assets include developmental rights in proven exploration
blocks, a 14 MTPA refinery on the west coast of India and over 1,376
Essar-branded oil retail outlets across India. Plans are under way to
increase its exploration acreage in various parts of the globe, expand
its refinery capacity to 18 MTPA, and open 1,700 outlets
countrywide by March 2011.
Our global portfolio of onshore and offshore oil and gas blocks, with
about 45,000 sq km is available for exploration. We have over300,000 bpsd (barrels per stream day) of global crude-refining
capacity that is being expanded to 375,000 bpsd, with the refining
capacity being enhanced by almost double. We have a controlling
stake of 50 percent stake in Kenya Petroleum Refineries Ltds
80,000-bpsd refinery; the remaining 50 percent is owned by the
Kenyan government.
Global exploration portfolio
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We are aggressively growing our presence in the Exploration and
Production business. We have 2C contingent resources of 148
mmboe (million barrels of oil equivalent), and best estimate
prospective resources of 1,012 mmboe.
Largest CBM player in India
We have an acreage of over 2,700 sq. km in India, which gives us the
largest CBM acreage in the country. Our CBM block in Raniganj is
close to commercial production and has signed customer contracts
with several companies.
Large refining capacity
We have a 14 MTPA refinery at Vadinar in Gujarat, which started
commercial production on May 1, 2008. It has been built with state-
of-the-art technology and has the capability to produce petrol and
diesel suitable for use in India as well as advanced international
markets.
It will also produce LPG, Naphtha, light diesel oil, Aviation Turbine
Fuel (ATF) and kerosene. The refinery has been designed to handle a
diverse range of crude from sweet to sour and light to heavy. It is
supported by an end-to-end infrastructure setup including SBM
(Single Buoy Mooring), crude oil tankage, water intake facilities, a
captive power plant (currently 500 MW, being expanded to 1,200
MW), product jetty and dispatch facilities by both rail and road.
We have made huge investments in installing the most advanced
equipment and units in our refinery. At 97 m, the refinerys crude
column is Asias tallest and capable of enhanced separation of
petroleum products. The DHDS reactor is also the largest in its
category capable of producing Euro V compliant diesel. The refinery
is, in fact, unique in its complexity and its ability to produce value-
added products. All units have operated many notches over their
rated capacities with the crude unit achieving over 14 million tonnes
(300,000 bpsd) in the very first year of operation. This is a first for
any refinery in India. We are expanding the refinery capacity to 18
million tonnes with an increase in its complexity from 6.1 currently
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to 11.8 on the Nelson index. As part of a continuous optimization
programme, the company has decided to further expand the refinerys
capacity by 2 million tonnes to 20 million tonnes (405,000 bpsd) by
September 2012. If market conditions are favourable, the capacity
will be enhanced further to 38 million tonnes, with a complexity of
12.8.
Until date, our Vadinar refinery has successfully processed more than
32 varieties of crude from across world, including some of the
toughest crudes. Plans are afoot to expand the refinery capacity
threefold in the next few years. Post expansion, the Vadinar refinery
will be among the five largest single-location refineries in the world.
Retail and Marketing
Essar Oil serves retail customers through a modern, countrywide
network of over 1,376 retail outlets, with plans to increase the
numbers to 1,700 retail outlets by March 2011. We were the first
private Indian company to enter petro retailing, looking beyond urban
markets and reaching out to consumers in Indias heartland.
We offer a wide range of products to bulk customers in the industrial
and transport sectors. EOL has product offtake and infrastructure
sharing agreements with oil PSUs, namely Bharat Petroleum
Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd
(HPCL) and Indian Oil Corporation (IOCL). We have received
approvals to supply Aviation Turbine Fuel (ATF) to the Indian
Armed Forces
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Exploration and production
We have a highly enriched technical team who believe in using the best
international oil industry practices
The Exploration and Production (E&P) business of the company hasparticipating interests in several hydrocarbon blocks for exploration and
production of oil and gas. Spanning Asia, Africa and Australia, we have a
diverse portfolio of offshore and onshore oil and gas blocks as well as Coal
Bed Methane (CBM) blocks.
Portfolio
Ratna and R-series fields near the Mumbai High field in the Mumbai
offshore basin
50 percent interest in one shallow water offshore exploration block MB-
OSN-2005/3, near the Mumbai High field in the Mumbai offshore basin
70 percent operating interest in Mehsana oil and gas block that has
started crude production
100 percent interest in 1 CBM block in Rajmahal, Jharkhand
100 percent interest in 1 CBM block in Raniganj, Durgapur, West
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Bengal, which is close to commercial production
100 percent interest in 1 CBM block in Sohagpur (Parts of Madhya
Pradesh and Chhattisgarh)
100 percent interest in 1 CBM block in Talcher, Orissa
100 percent interest in 1 CBM block in IB Valley, Orissa
100 percent interest in 2 exploration blocks in Assam
100 percent interest in 1 exploratory block in Nigeria shallow offshore
100 percent interest in 1 oil and gas block in Vietnam
100 percent interest in 2 exploratory blocks in Madagascar
100 percent rights in 2 exploration blocks in Northern Territory,
Australia offshore
49.5 percent interest in 1 on-land exploration South East Tungkal block
in Indonesia
We were the first Indian company to recognize the CBM potential in India in
the early 1990s, and undertake drilling, hydro-fracturing and de-watering ofthree CBM wells, in the Cambay Basin near Mehsana, Gujarat, India. The
economic viability of the project was established through this pioneering
work.
We are a horizontally integrated enterprise with full service capability
including drilling rigs, services equipment, engineering and construction,
etc. that are important business segments of the Group. The multi-
disciplinary team approach facilitates the use of resources in personnel,hardware / software and the right alliances to adopt best practices in
exploration and development.
Essar Oil has set up a highly enriched technical team that includes
geologists, geophysicists, petrophysicists, petroleum engineers, reservoir
engineers, well loggers, project managers and drillers, along with a highly
motivated management team, consisting of specialists in finance, business
development, logistics, human resources, and project consultancy. This teamoperates all our E&P blocks using best international oil industry practices
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with due regard to health, safety and environment, and also respecting the
local socio-political environment in the various countries of operations.
Refinery
Essar's oil refinery at Vadinar in Jamnagar, Gujarat, is ideally located on
India's west coast in proximity to the crude-rich gulf states
Vadinar is an all-weather, deep-draft natural port. About 70 percent ofIndia's crude imports land in and around this region. Besides, the refinery'slocation enables access to the fast-growing markets in the north and westernregion of India through product pipelines. The eastern and southern parts of
India will be serviced through the coastal route circling the country.
This world-class 14-million tonne refinery produces fuels compliant withlatest emission standards, and is being progressively expanded to 20 milliontonnes (405,000 bpsd) by September 2012.
The refinery has been built with state-of-the-art technology with technicaland project assistance from the world's leading consultants and equipmentsuppliers in the field. It is designed to handle a diverse range of crude mixes.
The world-class refinery produces middle distillates like Aviation TurbineFuel, kerosene oil and high-speed diesel, as well as LPG and transport fuelsconforming to Euro III and Euro IV product quality standards. Postexpansion, the refinery will have a Nelson Complexity of 12.8 with acapability of processing tougher crudes and producing petroleum products ofvery high quality, meeting Euro V standards.
The refinery is fully integrated with its captive power plant (currently 500MW being expanded to 1,200 MW), port and terminal facilities. It includesrail, car and truck loading facilities and a Single Point Mooring (SPM)
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capable of handling vessels up to 350,000 dead weight tonnage with amarine product dispatch capacity of 14 million tonnes.
The refinery has built-in environment friendly technologies for pollution
management. A self-sustainable, 700-acre greenbelt with over three lakhsaplings has been developed to ensure a green corridor around the entirerefinery complex.World-renowned processes - with the world technology leaders at work.
In Mombassa, Kenya, we have a 50 percent stake in a 80,000-bpsd refineryrun by the Kenya Petroleum Refineries Ltd (KPRL); the remaining 50
percent is owned by the Kenyan government.
Major units
Crude Distillation Unit: Current potential capacity of 14 million tonnes
Vacuum Distillation Unit: Current potential capacity of 7.2 million
tonnes
Vis Breaker Unit: Current potential capacity of 2.23 million tonnes
(Axens, France)
Continuous Catalytic Regenerator: Current potential capacity of 1million tonnes (Axens, France)
Fluid Catalytic Cracking Unit: Current potential capacity of 3.36 million
tonnes (Stone & Webster)
Diesel Hydro Desulphurisation unit: Current potential capacity of 4.5
million tonnes (Axens, France)
Naphtha Hydro Treater: Current potential capacity of 1.67 milliontonnes
Dedicated infrastructure includes a captive power plant (currently 500
MW, being expanded to 1,200 MW), dispatch facilities by rail, road, sea
and pipeline, associated tankages, pipelines, water intake facilities, and a
Single Buoy Mooring system, which can accommodate Very Large
Crude Carriers, to receive crude
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Marketing
Our retail outlets seek to redefine the way fuels are retailed in India
Retail businessThe retail business unit of Essar Oil is oriented towards delivering
better and faster service to its customers. Essar pioneered the conceptof setting up retail outlets using the franchisee-owned, franchisee-operated model. With a pan India network of 1,376 retail stations,Essar reaches every corner of the country covering the national andstate highways and the rural areas, plans to increase the numbers to1,700 retail outlets by March 2011. Essar Oil supplies high quality
Petrol and High-Speed Diesel.
Our widespread network has created an excellent land bank resultingin the development of Non-Fuel Retail (NFR). It is a promising
business channel for our retail today since it facilitates high footfalls,increased customer activation and high recall value with a profitableutilization of the retail site.
All NFR activities are designed to serve the varying needs of our
customers. This has created some mutually beneficial alliances acrossvarious categories such as Automobiles, Lubricants, Agrochemicals,Banking, Telecom and Food and Beverages. These tie-ups withleading players such as Exide, SERVO, CASTROL, TOTAL, ELF,SBI and Western Union Money Transfer and Amul have facilitatedmaximum customer convenience and satisfaction. A recent additionin the Non Fuel Retail is the take away counter of the popular BiryaniHouse in Hyderabad.Today, we are slowly emerging as a one stop destination for all the
retail customers with ever changing needs.
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Bulk businessEOL offers a wide range of products to bulk customers in theindustrial and transport sectors. A range of petroleum productscovering numerous applications are on offer to industrial customers
like power plants, and chemical, fertilizer and shipping companies. Ithas received approvals to supply Aviation Turbine Fuel (ATF) to theIndian Armed Forces, and has tie-ups with oil marketing companies,namely Bharat Petroleum Corporation Ltd (BPCL) and HindustanPetroleum Corporation Ltd (HPCL).
Bulk products currently offered by us:
Product Application
LPG Domestic fuelSKO Domestic fuel
ATF Commercial airlines, defense services
Furnace oil (180 Cst / 380 Cst) DG set, boiler, furnace, marine
Bitumen feed stock Process, industrial
Sulfur Chemicals industry
MS (BS II, BS III) Automotive fuel
HSD (BS II, BS III) Automotive fuel, industrial, DG set
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Export of Oil &petroleum Product
India's average petroleum products export grew from 0.77 million barrels a day
in January 2009 to one million barrels a day in August 2009. In the current year,
the average oil products export from India stands at 1.07 million while South
Korea exports average 0.88 million.
In fact, India's refining capacity at 3.69 million barrels a day is the third largest
in Asia after China and Japan, which have a refining capacity of 9.6 million bpd
and 4.64 bpd respectively. Platts compilation is based on the data from
individual countries.
Both Reliance Industries' Jamnagar and Essar's Vadinar refineries contribute
more than 90 per cent of the petroleum products exports while the rest is by
public sector oil companies, said Ms Vandana Hari, Asia Editorial Director,
Platts.
According to her, petroleum products exports from India holds great potential as
both RIL and Essar have high complexity refineries which make products that
meet Euro IV and Euro V standards. Europe, the US and Africa are identified
major markets for Indian refiners.
Growing demand
The growing overseas demand for petroleum products from India is reflected inexport volume growth of Reliance and Essar. RIL exported 32.8 million tonnes
of refined products last fiscal against about 22.6 million tonnes for the previous
period, fetching revenue of $20.9 billion (Rs 1,10,176 crore).
Essar's Vadinar refinery has a total current throughput capacity of 14 million
tonnes a year. Of the total production, about 30 per cent is exported while more
than sixty per cent of refined products are sold to public sector oil marketing
companies.
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Reliance Industries and Essar Oil are among about half a dozen firms in race to
buy crisis-hit British energy giant BP's fuel marketing assets in east African
countries.
Reliance and Essar have offered between $400 to 500 million for BP's assets inthe East African nation, they said.
Essar Oil had last year acquired a 50 per cent stake in 4 million tons a year
Kenya Petroleum Refinery in Mombasa.
Essar Oil picks up 50 % stake in Kenya-based refinery
Ruias-owned Essar Oil today announced acquisition of 50 per cent stake in a 4
million-tonne oil refinery in Kenya. The company acquired 50 per cent stake of
western energy majors Shell BP and Chevron in Kenya Petroleum RefineriesLtd, Essar said.
http://economictimes.indiatimes.com/reliance-industries-ltd/stocks/companyid-13215.cmshttp://economictimes.indiatimes.com/essar-oil-ltd/stocks/companyid-9179.cmshttp://economictimes.indiatimes.com/reliance-industries-ltd/stocks/companyid-13215.cmshttp://economictimes.indiatimes.com/essar-oil-ltd/stocks/companyid-9179.cms8/4/2019 Essar Final
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Imports of Oil & petroleum product
According to Oil & Gas Journal (OGJ), India had approximately 5.6 billion
barrels of proven oil reserves as of January 2010, the second-largest amount in
the Asia-Pacific region after China. Indias crude oil reserves tend to be light and
sweet, with specific gravity varying from 38 API in the offshore Mumbai High
field to 32 API at other onshore basins.
India produced roughly 880 thousand barrels per day (bbl/d) of total oil in 2009
from over 3,600 operating oil wells. Approximately 680 thousand bbl/d wascrude oil, the remainder was other liquids and refinery gain. In 2009, India
consumed nearly 3 million bbl/d, making it the fourth largest consumer of oil in
the world. EIA expects approximately 100 thousand bbl/d annual consumption
growth through 2011.
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Nearly 70 percent of Indias crude oil imports come from the Middle East,
primarily from Saudi Arabia, followed by Iran. The Indian government expects
this geographical dependence to rise in light of limited prospects for domestic
production.
Downstream/Refining
Essar Oils Vadinar refinery expansion of 110,000 bbl/d in 2011, 120,000 bbl/d
greenfield refinery in Bina in 2011 by a joint venture between Bharat Petroleum
Corporation Limited and Oman Oil Company Limited, a 180,000 bbl/d
grassroots refinery in Bhatinda in 2014 by Hindustan Petroleum Corporation
Limited, and IOCs grassroots Paradeep refinery of 300,000 bbl/d in 2015. India
is slated to add 840 thousand bbl/d of refining capacity through 2015 based on
currently proposed projects.
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Questionnaire
(Answers are given by Mr. Jagdish Narwekar)
1) Your Exports are in which countries?
Ans : Our business is mainly with Asian and African countries. We are
exporting our products to UK, Dubai, Singapore, Kenya, South Africa etc.
2) Which benefits you receives from government at the time of recession?
Ans: While importing crude oil from other country we have to pay 5 % custom
duty to government, but at the time of recession government removed that
custom duty only that much benefit is given by the gornment nd after recession
government again imposed that duty.
3) Any problems occur at the time of import or export?
Ans: We didnt faced any problem at the time of export till now. But recently
while importing crude oil from Iran we faced some payment related problem.
4) Do you think custom formalities are more than enough?
Ans: Yes, I think it is sufficient.
5) Any difficulties incurred during export/import documentation procedure?
Ans: No , all the documents are standard documents so no difficulty.
6) Any company which gives you neck-to-neck competition? Name them.
Ans: Reliance industries are our big competitors. Also Government industries
like Indian oil, Bharat petroleum (BPC), HPCL etc.
7) What is the source to get information from overseas market?
Ans: Various business related magazines, Newspapers, Business news channels,
Websites etc. are our sources of informations.
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8) What kind of strategy do you have, which keeps good relation with
foreign buyers?
Ans: As our company is one of the leading company in this business, our
customers have faith on us. We gave quality product to our customer, timelydelivery of product. And as per our importers are in concerned we gave them
payment on time.
9) Could you give us an example how Chambers of commerce helps out
your company in export / import trading?
Ans: As I said before our company is a big company and we are having many
years experience in this field, so we dont need the help of any govt
organization. Only we do our trading.
10) Which types of bills of exchange do you use?
(Documents are send 1st & then payments or payments 1st then
documents)
Ans: Documents are send 1st then payment for that 30 min time period is given.
11) Name the major countries in which your company product are been
delivered?
Ans: As I said before, Our business is mainly with Asian and African countries.
We are exporting our products to UK, Dubai, Singapore, Kenya, South Africa
etc.
12) Your company turnover goes around?
Ans: Around 50,000 cr. p.a
13) Do you have clearing and forwarding agent to sell your in overseasmarket?
Ans: Yes we have, our offices are also there in UK, Kenya and other African
countries.
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Conclusion
Essar ltd. is a big organization. They are actively present in many business. Our
project is mainly concerned with Essar oil and petroleum Ltd. Through our this
project we learned the lots of things about the Import/Export.
For good export and import company should maintain good relations with
their customer.
If any problems or difficulties occurred during exporting or importing
company should solved that problem in right manner because not only the
companys image but the countrys image is also involved in that.
There should be mutual understanding between both the parties who are
doing business with eachother.
They should have faith on each other.
And last but not the least quality product , timely delivery and payment
on time these are the important things while importing as wel as
exporting.
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Bibliography
www.essar.com
Wikipedia
www.google.com
Times of India
http://www.essar.com/http://www.google.com/http://www.essar.com/http://www.google.com/Recommended