indian businessmen The houses have seen public feuds among founders over control in recent years. The Ruia family-controlled Essar Group, which has businesses ranging from metals to ports, appears to be an exception. Three generations of the Ruia family – founder brothers Shashi and Ravi Ruia, their children and grandchildren – live under the same roof and run the business empire jointly. They share their family homes in Mumbai, Delhi and London as well as businesses in energy, metals and mining, infrastructure and logistics and technology and retail.
Everybody gets an opportunity to move forward
Prashant Ruia, director of Essar Capital, which manages the group’s investment portfolio, considers himself fortunate to have the support of his family, where members cherish strong bonds that have lasted for generations. Ruia said he firmly believes that careful setting of goals is key to maintaining strong family ties. It is important to ensure that every family member gets a say and a say. “If the goals are aligned and people are given a chance to express themselves, it (families staying together) is possible,” he said.
Great experience with family
I am surprised that this tradition is dying so fast. We have kept it up and it has been a great experience. At home, while travelling, at work, it is definitely great to have that support and we are very happy.” First-generation entrepreneurs Shashi and Ravi Ruia founded the Essar Group in 1969 when they received a Rs 2.5 crore contract from the Madras Port Trust to build an outer breakwater in the harbour. Essar focused on the construction and engineering sector in the initial years. It built several major infrastructure projects including bridges, dams and power plants. The Essar Group entered the energy sector in the 1980s with the acquisition of several oil and gas assets.
The business expanded in the 1990s
In the 1990s, Essar expanded its operations in the steel and telecom sectors. It built steel plants, an oil refinery and India’s second-largest telecom operator with Hutchison. It exited the telecom business, selling the oil refinery to a consortium led by Russia’s Rosneft. It had to sell its steel plants to ArcelorMittal after insolvency proceedings began to recover outstanding debt. After paying off a debt of about Rs 2 lakh crore, Essar is now rebuilding itself.
The group has around 14 companies
Ruia said, “The group’s revenue is around US $ 15 billion. Our ‘run rate’ in terms of pre-tax income of the group is around one billion dollars, which is around Rs 8,000 crore and the current valuation of the group is around eight billion US dollars of assets under management. Today we are in this position as a group. “He said, “The group has about 14 companies where investments are being increased. Some of these companies are in India, some are international. We work globally and we are moving forward. ”
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