CHAPTER :- 2 COMPANY PROFILE

2.1 Name & Location of the Company

Essar Steel India Private Limited

Location of the Company :-

 Essar Steel India Private Limited Corporate Office Address :-

Essar House, 11, Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400034,

Maharashtra, India

 Corporate Office Telephone No :- +91 22-2495-0606 / 6660-1100

 E-Mail :- steel@essar.com

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2.2 Name & Locations of other Branches

Factory/Plant Address
Hazira Plant 27th KM, Surat Hazira Road, Hazira,
Surat – 394 270, Gujarat, India
Phone : +91 (0261) 287 2796
Visakhapatnam Plant Scindia Road, near flyover,
Visakhapatnam – 530 004, India
Phone : +91 (0891) 252 321

2.3 Year of Establishment

Essar Steel Ltd. 1976 – Essar Gujarat Limited was incorporated in 1976 as Essar
Construction Limited. The company undertook specialized marine construction
activity, offshore installations, drilling for oil and gas and manufacture of hot
briquetted sponge iron.

2.4 Brief History

 In 1969, The Essar Group began its operations with the construction of an
outer breakwater in Chennai port, an order worth Rs 2.5 crore.
 Around the mid-1980s, the Government also opened up the contract
drilling business to Indian private companies. Essar again grabbed the
opportunity and went on to become India’s largest rig operator in the
private sector. It owned 11 land rigs, one offshore rig and a drill ship.
 India in those days had secondary steel makers who used imported scrap
to produce steel. This prompted Essar to start manufacturing sponge iron.
Again, breaking the tradition of locating manufacturing facilities close to

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 the mines, the Company chose to build the plant at Hazira, a port on the
west coast of India.
 In 2001, Essar Steel has appointed KPMG to undertake a study, which
would cover the entire gamut of its operations including manufacturing,
product mix, marketing, logistics procurement and finance. Essar has
decided against making any fresh investments in the power sector and put
on hold its proposed 250 mw capative power plant of Essar Steel.
 Currently, Essar has a fully integrated world-class facility at Hazira,
housing the world’s fourth single-location steel plant. It has a steel-makong
capacity of 10 MTPA, holds ISO: 9001:2000, IS 9002 and TUV, and ISO
140001 certification and is India Chiller Energy Efficiency Project
(ICEEP) Protocol compliant.
 The facility also houses a 6.8 million tonne per annum (MTPA) sponge iron
plant (the world’s largest gas-based sponge iron plant in a single location);
a 1.5 MTPA plate mill (the largest in India); a 0.6 MTPA pipe mill with
internal and external coating facilities of up to 2 million square meters
annually.

2.5 Name of Founders & Promotors

Essar Group is an Indian multinational conglomerate and construction company, founded

by Shashi Ruia and Ravi Ruia in 1969.

2.6 Vision Statements

We will be a respected global entrepreneur, through the power of positive action.

2.7 Mission Statements & Values Statements

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 Mission

We are committed to innovative growth, through our personal passion, reinforced

by a professional mindset, creating value for all those we touch.

Values

 People

We want our business to stay personal. We will grow an extended family and enrich
the lives of employees, customers and partners.

 Progress

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.

 Power

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.

 Passion

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.

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2.8 Organisational Structure / Hierarchy

2.9 SWOT Analysis

Strength

- Global producer of steel with a footprint covering India, Canada, USA,

Middle East and Asia
- India’s largest exporter of flat steel products
- Natural gas & power consumption in processes have reduced over the years

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 - In spite of the slowdown in the steel markets it has retained adequate
liquidity within the Company to meet its operational requirements and has
withstood the downturn
- Strong brand backing of parent company
- Good advertising and market visibility through TVCs and print ads

Weakness

- Dependence on RBI monetary policy easing & tightening for controlling

inflation affects operations
- High dependence on raw materials & forex markets is a concern

Opportunities

- Improvement in physical property and chemistry to produce quality

products
- Provide more finances for expansion, strengthening of marketing network
through Service Centres, Hypermarts etc. and strategic investments
- Use mathematical Model to predict the temperature evolution during cooling
of Hot steel products to improve product quality

Threats

- Financial crisis in Europe will continue to affect demand world wide

- Rules & Regulations of government of each country in which Essar steel has
presence