Success via consolidation

FACES 2004/SHASHI RUIA

The upcoming oil refinery at Vadinar in Jamnagar will place Shashi Ruia, chairman of the Essar Group, among the few industrialists to be watched during 2004.

Work at the Vadinar refinery will gain momentum during the current year. The laying of the company's petroleum retail network across the state started with the opening u of its first petrol pump at Moti Khavdi in Gujarat last month.

The group's undergoing projects include the much-awaited oil refinery which is expected to produce 55 lakh tonne of diesel and 22 lakh tonne of petrol annually besides LPG, kerosene and naptha in next 18 months.

The company also has plans to set up 300 petrol pumps across the state. With the ups and downs in the industry, Ruia, after a debt restructuring exercise, has reasons to rejoice this year.

Ruia, now in his 60s, commenced his career in his family business under the guidance of his father, the late Nand Kishore Ruia, way back in 1969.

Apart from a presence in various segments such as oil and gas, construction and shipping, following the opening up of the telecom sector, the group immediately took advantage of the emerging opportunities and entered the segment.

It also roped in Hutchison Whampoa as the joint venture partner. Today the Hutchison-Essar combine provides cellular services in 11 circles including four metros with over four million subscribers with a market share of 20 per cent.

"Ruia has not only masterminded the group's business strategy but has also consolidated a whole range of activities through backward and forward integration.

This is despite various odds he faced during the last few years including unhealthy competition from its rivals. This has enabled the group to utilise the synergy and propel its rapid growth into a large business conglomerate," said an industry expert.

After the successful completion of the multi-crore construction project of Sardar Sarovar Nigam Ltd (SSNL), Essar is now working on a project for the state government-owned Gujarat State Petroleum Corporation Limited (GSPCL) for its gas pipeline project.

Work for this is expected to be over during this year. In the construction segment, Essar is setting up a project for the state irrigation department.

These two projects worth Rs 250 crore are expected to be over during this year.

With many projects on hands and some more being processed, year 2004 may well be of Ruias.