Essar Group to invest $650 mn more in US steel plant: Prashant Ruia

Company to focus on energy, metals and mining, infrastructure and technology in India, he says

As President Donald Trump rolls out his Make in America plans, India’s Essar Group is finalising an additional $650 million investment in its plant in the state of Minnesota. It had invested $1.7 billion earlier. PRASHANT RUIA, director of Essar Group, in a telephone interview from the World Economic Forum in Davos in Switzerland, told Dev Chatterjee  that his company is bullish on the American and Indian markets. Excerpts:

 

With a new US administration in place, will the Essar Group consider increasing its investment in the United States?

 

The US is a crucial market for us, and our investments reflect our long-term commitment to the region. In Northern Minnesota, we are building a 7 million tonnes per annum (MTPA) iron ore mining and pelletisation facility, with 1.3 billion tonnes high-grade iron ore reserve. This initiative is central to the US steel industry’s transition toward more sustainable, low-carbon production. With $1.7 billion invested so far, and an additional $650 million planned, we are creating more than 700 direct jobs in the US and making a significant contribution to local economic development.

 

Black Box, our technology arm, provides cutting-edge digitalisation, network infrastructure for data centres, and cybersecurity solutions to Fortune 500 companies in the US. With a workforce of 2,200 employees, the market accounts for 75 percent of Black Box's total revenue. We are aiming to achieve $2 billion in revenue for Black Box over the next four years.

 

India aims to become a $5 trillion economy. What role do you see the Essar Group playing?

 

India’s growth story is truly impressive and the opportunities ahead are even greater. India has the potential not only to meet its substantial domestic consumption demand but also to emerge as a key player in the global supply chain. It can position itself as a China Plus One solution, fulfilling the demands of developed economies. We intend to play a significant role in this transformation by focusing on sectors such as energy, metals and mining, infrastructure and technology.

 

Given the various geopolitical events and a new US president, what is the mood in Davos about India?

 

Davos is more than just a gathering – it’s a launch pad for ideas that can change the world. India, with its transformative growth story and bold aspirations, is standing tall on this global stage. I expect the conversations now to move beyond theoretical discussions into tangible, actionable strategies that businesses can implement to drive growth while addressing pressing global challenges. Innovations in areas such as energy transition and renewable energy have the potential to unlock new markets and drive the competitiveness of existing industries.

 

The Essar Group is investing billions of dollars in green energy in the United Kingdom and India. What are you doing to reduce the group’s environmental footprint?

 

We are committed to building a sustainable future by investing in transformative green ecosystems. Our focus spans industrial decarbonisation through hydrogen and hydrogen-powered plants, advancing green mobility solutions to decarbonise heavy-duty trucking, driving innovation in second-generation biofuel production, and pioneering the manufacturing of green steel.