Essar Shipping Ltd is a part of the multinational conglomerate Essar Group. The company is an integrated logistics solution provider with investments in logistics services, sea transportation and oilfield drilling services. The company's integrated business model provides end-to-end logistics, shipping and oilfield services to its customers in a very cost-effective manner.
The company has a diversified fleet of 26 vessels, including VLCCs, Capesizes, Supramaxes, mini bulk carriers and tugs. The Oilfields Services business provides contract drilling services to oil & gas companies across the globe. This business owns one semi-submersible rig and 12 land rigs. The Logistics business provides end-to-end logistics services - from ships to ports, lighterage services to plants, intra-plant logistics and dispatching finished products to the final customer. This business owns transshipment assets to provide lighterage support services, and onshore & offshore logistics services.
The subsidiaries companies are, Essar Logistics Ltd, Essar Oilfields Services Ltd, Essar Oilfield Services (India) Ltd, Energy Transportation International Ltd and Energy II Ltd.
Essar Shipping Ltd was incorporated on April 16, 2010 with the name of Essar Ports & Terminals Ltd in the State of Gujarat. The company received the certificate of commencement of business on June 1, 2010. The main object of the company on incorporation was to carry on the business inter alia of providing ports and terminals services.
In August 25, 2010, the main objects of the company were expanded to inter alia provide shipping & logistics and oilfields services business. The name of the company was changed from Essar Ports & Terminals Ltd to Essar Shipping Ltd with effect from September 7, 2010.
The Hon'ble High Court of Gujarat at Ahmedabad vide order dated March 1, 2011 approved the composite scheme of arrangement (scheme) between Essar Shipping Ports & Logistics Ltd (ESPLL), Essar Ports & Terminals Ltd (EPTL), Mauritius, Essar International Ltd (EIL) Mauritius and Essar Shipping Ltd (ESL). The scheme provided for the merger of EPTL and EIL with ESPLL and the demerger of the Shipping & Logistics Business and the Oilfields Services Business into ESL.
Pursuant to the scheme, all the assets and liabilities pertaining to the Shipping & Logistics Business and the Oilfields Services Business stood transferred to and become vested in Essar Shipping Ltd with effect from October 1, 2010. Upon the scheme becoming effective, the company ceased to be a subsidiary of Essar Shipping Ports & Logistics Ltd with effect from October 1, 2010. In July 27, 2011, the company acquired a 152,065 DWT cape see dry bulk carrier.
The company has placed orders for 12 new ships, which are expected to join the fleet over the next 24 months. A sizeable part of the capacity is deployed on long-term contracts and COAs, insulating the company from the volatility of spot markets. The company has ordered two new jack-up rigs, which will be joining the fleet over the next 18 months.