Essar Group founder Shashikant Ruia passes away at 81, PM expresses grief

PM expresses grief, says his visionary leadership and unwavering commitment to excellence transformed the business landscape of India

Shashikant Ruia, patriarch of the billionaire Ruia family and co-founder of the Essar Group of companies, passed away late on Monday night, the family announced in a statement. He was 81.

 

Condoling Ruia’s death, Prime Minister Narendra Modi, in a post on X, said, “Shri Shashikant Ruia Ji was a colossal figure in the world of industry. His visionary leadership and unwavering commitment to excellence transformed the businesses landscape of India. He also set high benchmarks for innovation and growth. He was always full of ideas, always discussing how we can make our country better.”

 

“Shashi Ji’s demise is deeply saddening. My deepest condolences to his family and loved ones in this hour of grief,” Modi said.

 

 

The Essar Group is currently led by his younger brother Ravi and his sons Prashant and Anshuman.

 

Ruia, alongwith Ravi, founded the Essar Group which went on to set up some of India's biggest projects, including single location oil refinery in Jamnagar in the late 90s. The Ruias sold the refinery to Rosneft of Russia for $13 billion in one of the largest foreign direct investments into India in 2017. The group had also set up a 10 mtpa steel plant in Hazira, Gujarat in the mid-90s, which was acquired by ArcelorMittal in an auction conducted by the banks in 2018. The fortunes of the project had changed after its operations were hit by lack of gas supply from the central government.

 

In March 2011, the Indian government categorised the steel sector from “priority sector” to “non-core area” and issued directions to Reliance Industries, the gas producer in Krishna Godavari basin, to cut off supply to Essar Steel in case of shortage in the supply of gas from the Krishna Godavari field.

 

In January 2011, Essar Steel had commissioned its expansion of the capacity of its steel plant and almost 68 per cent of the new steelmaking capacity of the expanded plant was based on gas. But the gas supply to the plant was completely stopped by July 2011 and the capacity utilisation of the plant soon fell to just 35 per cent. The company started making losses and defaulted to bank loans. It was referred to the courts for debt resolution under the Insolvency and Bankruptcy Code of the Modi government.

 

Starting his journey from Chennai in the late seventies, Ruia alongwith his brother Ravi shifted to Mumbai in the 1980s to expand their business. Over the next three decades, with the Indian economy opening up, the brothers diversified into several sectors, including oil and gas, steel manufacturing, mining, ports, shipping, power and telecommunications with a 33 per cent stake in a joint venture with Vodafone PLC. The group sold its stake in the telecom venture to their partner Vodafone PLC for $5 billion in 2011 in one of the most successful exits from the telecom sector.

 

The group's name was derived from the first letters of both brothers Shashi and Ravi. The group became a global conglomerate as it acquired Stanlow refinery in the United Kingdom alongwith its retail outlets in 2011 from Royal Dutch Shell.

 

Old timers recall Ruia as a humble, down-to-earth person who would often mentor young people in the organisation. While setting up the Hazira project near Surat, Ruia would often take the overnight train from Mumbai to oversee the project. He would also consult late Tata group chairman Ratan Tata on the future of the Indian steel industry despite being rivals in the sector, recall old timers.

 

“He would prefer to keep a low profile and let his work speak,” says a CEO of a rival group, asking not to be quoted.

 

Sajjan Jindal, chairman of JSW Steel, said he is deeply saddened by the passing of Shashikant Ruia - a “motivator, mentor and one of the doyens of Indian steel industry.”

 

“Shashi bhaiya's vision transformed Essar into a global powerhouse, and his humility touched countless lives. His legacy will continue to inspire us all,” he said.

 

The group currently owns a refinery in the United Kingdom, and renewable power projects in India and overseas and digital infrastructure firm Black Box.

 

“With an unwavering commitment to community upliftment and philanthropy, he touched millions of lives, leaving an enduring impact. His humility, warmth, and ability to connect with everyone he met made him a truly exceptional leader,” the Essar group said in a statement.

 

“Ruia played a significant role in redefining India's corporate landscape. He laid the foundation of the Essar Group and made it a global conglomerate. His extraordinary legacy will remain a guiding light for all of us, as we honour his vision and continue to uphold the values he cherished and championed,” the statement said.