Shashikant Ruia: The visionary behind Essar Group's rise to global prominence
Shashikant Ruia co-founded Essar Group in 1969, transforming it from a construction firm into a global conglomerate with interests in energy, steel, telecommunications, and infrastructure.
Shashikant Ruia also known as Shashi Ruia, co-founder of the Essar Group and a prominent Indian billionaire, passed away on Tuesday, November 25, at the age of 81.He was a prominent Indian businessman, best known as one of the co-founders and the former chairman of Essar Group, one of India's largest conglomerates with interests in sectors such as steel, oil, power, telecommunications, and infrastructure. His business acumen and leadership transformed Essar from a small trading company into a multinational conglomerate. Here's a detailed look at his life, achievements, and background:
Early life and childhood:
Shashi Ruia was born in April 1949 in India. His early life was relatively humble, and he hailed from a family with modest means. Growing up in a middle-class environment, Ruia developed a keen interest in business and commerce at a young age. His family was known for their entrepreneurial spirit, which influenced him in his pursuit of a business career.
Ruia was educated in India, and like many successful entrepreneurs, he was not necessarily an academic prodigy but possessed a strong work ethic and practical intelligence. He is a mechanical engineer by profession, with a degree from the College of Engineering, Guindy in Chennai.
Career and achievements:
Shashi Ruia’s most notable achievement was the co-founding of Essar Group along with his brother, Ravi Ruia, in 1969. The Essar Group started as a small trading company in Mumbai, primarily focused on steel. Over the years, the company expanded its operations into several sectors, including energy, oil and gas, telecommunications, and infrastructure, making it one of the most significant business conglomerates in India.
By the 1980s, Essar diversified into energy, acquiring key oil and gas assets. The 1990s saw further expansion into steel and telecommunications, including the establishment of Essar Steel, one of India's largest steel producers, and Essar Telecom, which later became a part of the country's telecommunications revolution.
Under Shashi Ruia's leadership, the company grew its footprint globally, with investments spanning across 35 nations. Essar Group's growth was driven by strategic partnerships, like its joint venture with Royal Dutch Shell in the oil sector and expansions into new sectors such as power, ports, and infrastructure. Ruia's vision of leveraging India's potential in the global economy and his relentless pursuit of innovation shaped Essar's path toward becoming a global business powerhouse.
Essar group expansion:
Under Shashi Ruia's leadership, Essar transformed into a global giant. The company's entry into oil refining and its partnership with foreign players, such as Royal Dutch Shell for Essar Oil, showcased its ambition to diversify and dominate multiple industries. Essar also made significant investments in steel plants, power plants, and telecommunications.
Essar Steel:
One of the key contributions of Shashi Ruia to Essar Group’s success was the development of Essar Steel, one of the largest private sector steel producers in India. He played a pivotal role in establishing Essar Steel's plants and growing its capacity.
Essar Oil:
Another notable achievement was the development of Essar Oil, which included one of the largest oil refineries in India, located in Vadinar, Gujarat. The company also ventured into upstream oil exploration and production and formed a joint venture with Royal Dutch Shell.
Essar Power:
Shashi Ruia also focused on the power sector, with the company investing in thermal power plants and renewable energy.
Leadership and vision:
Shashi Ruia was known for his visionary leadership. His business philosophy was based on the belief that India’s economic growth would be driven by a strong infrastructure base. He was a forward-thinking businessman who sought opportunities for growth in emerging sectors and was always looking for ways to diversify Essar's portfolio. His focus on energy, infrastructure, and telecommunications set him apart from other business magnates of his time.
Under his leadership, Essar Group achieved substantial growth both in India and abroad, making key investments in international markets, including Russia, East Africa, and the Middle East. The company's global presence reflected his ambition to compete at the highest levels internationally.
Personal Life and leadership style:
Shashi Ruia is married to Madhu; they have two children and live in Mumbai. He was known for his low-profile, private nature and practical, hands-on approach to business. He was not a flamboyant businessman in the media but preferred to focus on his work and leave the limelight to others. While his leadership style was assertive, it was also collaborative, with a strong emphasis on innovation and strategic partnerships.
He has been regarded as a shrewd businessman with a deep understanding of the industries Essar operates in. His ability to make key acquisitions and forge international partnerships contributed significantly to Essar's success.