Essar Final

8/4/2019 Essar Final

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GROUP MEMBERS

SR.NO

NAME ROLLNO.

1 HINESH GOGRI 123

2 POONAM DUMBRE 144

3 HARSHADA SAWANT

4 BHOOMIT JAIN 160

Index


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Sr. No. Particulars

1

2

3

4

5

6

7

8

9

10

11

12

Acknowledgement

Declaration

Essar group

History of Essar group

Corporate profile

Businesses

Essar in oil and Gas

Export of oil and petroleum product

Import of oil & petroleum product

Questionnaire

Conclusion

Bibliography


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History of Essar Group Ltd

The Ruia familys origins are in Rajasthan. Sometime in the 19th

century, they moved to Mumbai and set up their own business.

In 1956, Mr Nandkishore Ruia, father of Mr Shashi Ruia and Mr

Ravi Ruia, moved to Chennai, capital of the south Indian stateof Tamil Nadu, to begin independent business activities. He

mentored his two sons in the intricacies of business. When Mr

Nandkishore Ruia passed away in 1969, the brothers laid the

foundation of the Group.

The Essar Group began its operations with the construction of an

outer breakwater in Chennai port. It quickly moved to capitalize

on every emerging business opportunity, becoming Indias firstprivate company to buy a tanker in 1976. The Group also

invested in a diverse shipping fleet and oilrigs, when the

Government of India opened up the shipping and drilling

businesses to private players in the 1980s. Then, in the 1990s,

Essar began its steelmaking business by setting up Indias first

sponge iron plant in Hazira, a coastal town in the western Indian

state of Gujarat. The Group went on to build a pellet plant in

Visakhapatnam, and eventually a fully integrated steel plant in

Hazira.

Through the 1990s, with the gradual liberalization of the Indian

economy, Essar seized every opportunity that came its way. It

diversified its shipping fleet, started oil & gas exploration and

production, laid the foundation of its oil refinery at Vadinar,

Gujarat, and set up a power plant near the steel complex inHazira. The construction business helped the Group build most

Acknowledgement

We take this opportunity to express our

sincere gratitude towards all those whodirectly and indirectly assisted us increating this project .We are thankful toMrs. Sindhu mam who provide anopportunity to write this project. Hersupportive nature and technical assistancemade us comfortable at every step.

We express our sincere thanks toevery member ofEssar group especiallyMr. Jagdish Narwekar for providing ustechnical Knowledge and lending theirvaluable time to us.

Last but not the least, we are thankfulto all those who directly and indirectly

helped us in completion of this work.

Type

Public

(BSE: 500630)

(BSE: 500134)

Industry Conglomerate

Founded 1969

Founder(s)Shri.Shashi Ruia

Shri.Ravi Ruia
http://en.wikipedia.org/wiki/File:Essar_logo.svghttp://en.wikipedia.org/wiki/File:Essar_logo.svghttp://en.wikipedia.org/wiki/File:Essar_logo.svghttp://en.wikipedia.org/wiki/Public_companyhttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500630http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500134http://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500630http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500134http://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/w/index.php?title=Shri.Shashi_Ruia&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Shri.Ravi_Ruia&action=edit&redlink=1http://en.wikipedia.org/wiki/File:Essar_logo.svghttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500630http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500134http://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/w/index.php?title=Shri.Shashi_Ruia&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Shri.Ravi_Ruia&action=edit&redlink=1http://en.wikipedia.org/wiki/Types_of_business_entity


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of its business assets. Essar also entered the GSM telephony

business, establishing Indias first mobile phone service in Delhi

(branded Essar Cellphone) with Swiss PTT as the joint venture

partner.

The 21st century for the Essar Group has been all about consolidating

and growing the businesses, with mergers and acquisitions, new

revenue streams and strategic geographical expansion.

Essar Group Ltd. is one of India's leading privately owned, diversified

conglomerates, with a total asset base of more than $5 billion and annualrevenues of INR 100 billion ($2.2 billion). Whereas Essar Group itself is

controlled by the founding Ruia family, much of the company's diversified

holdings fall under its publicly listed subsidiaries.

The company's subsidiaries include Essar Steel, the second largest private sector

steel company in India; Essar Oil, a fully integrated oil and gas producer, and

the firstprivate sector Indian company to enter the market since its

liberalization in the early 1990s; Essar Power, which operates a 515 megawatt

(MW) natural gas power plant in Hazira, with plans to increase its total output

to 2,500 MW by the end of the 2000s; Essar Shipping, the group's original

activity, the leading shipping group in India, with 30 vessels, including India's

first Very Large Crude Carrier (VLCC) tanker, representing some 14 percent of

the country's total fleet;

Essar Teleholding, which, through its joint venture Hutchison Essar is the

second largest cellular telephone provider in India; and Essar Construction, a

leading construction company in India. Other Essar holdings includesubsidiaries involved in magazine publishing, business process outsourcing,

information technology, and flower and vegetable production. Essar Group is

led by Shashi and Ravi Ruia, sons of the company's founder.
http://en.wikipedia.org/wiki/Vice-Chairmanhttp://en.wikipedia.org/wiki/Vice-Chairmanhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Essar_Steelhttp://en.wikipedia.org/wiki/Essar_Oilhttp://en.wikipedia.org/wiki/Essar_Hypermarthttp://en.wikipedia.org/wiki/The_MobileStorehttp://en.wikipedia.org/wiki/Essar_Oilhttp://en.wikipedia.org/wiki/Essar_Hypermarthttp://en.wikipedia.org/wiki/The_MobileStorehttp://en.wikipedia.org/wiki/Essar_Hypermarthttp://en.wikipedia.org/wiki/The_MobileStorehttp://en.wikipedia.org/wiki/Websitehttp://www.essar.com/http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Vice-Chairmanhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Essar_Steelhttp://en.wikipedia.org/wiki/Essar_Oilhttp://en.wikipedia.org/wiki/Essar_Hypermarthttp://en.wikipedia.org/wiki/The_MobileStorehttp://en.wikipedia.org/wiki/Websitehttp://www.essar.com/


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Chronology

Key Dates

1956 Nand Kishore Ruia moves to Chennai and establishes the Essar Group as

a trading company.

1966 The company enters the stevedoring market for the region's iron ore mining

industry.

1969 After Ruia's death, his sons Shashi and Ravi become heads of the company

and launch a long diversification drive, starting with an entry into the construction

market, through Essar Construction, and the shipping industry, through Essar

Bulk Cargo Carriers.

1975 The company establishes Essar Gujarat (later Essar Steel) to produce

sponge iron ore.

1976 The company establishes Essar Investment as a holding for the Ruia

family's diversified investments.

1983 The company acquires Karnataka Shipping Corporation.

1984 Essar Bulk Cargo Carriers is renamed as Essar Shipping Limited (ESL) in

1984.

1989 The company establishes Essar Oil & Exploration with plans to develop

integrated oil services.

1992 The South India Shipping Corporation is acquired.

1993 The company wins exploration bids for fields in Rajasthan and offshore

Bombay; construction of a 510 megawatt (MW) power plant is launched in Hazira.

1995 The company enters the mobile telecommunications market.

1996 The company creates an alliance with Sterling Cellular Limited and rolls out

the Essar Cellphone brand.


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1999 Essar Group is forced to default on loan payments.

2001 Essar Oil begins developing its own service station network; Essar Steel

forms a partnership to build a cold-rolled steel plant in Indonesia.

2002 The company merges cellphone operations into the Hutchison Essar jointventure.

2005 Hutchison Essar acquires BPL's cellular phone operations in India.

2006 Essar buys a new Very Large Crude Carrier (VLCC) tanker

The Essar spirit

The Essar Group has been foraying into new international markets,

and exploring new business areas in a bid to keep its entrepreneurial

spirit alive, and to keep growing

Our vision

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

positive action.

Our mission

We are committed to innovative growth, through our personal

passion, reinforced by a professional mindset, creating value for all

those we touch.

Our spirit

The Essar Group has changed significantly in recent years and

continues to evolve, to keep pace with the changing times. We haveundertaken a sustainable journey of transformation by foraying into

new international markets, and exploring new business areas in a bid

to keep our entrepreneurial spirit alive, and to continue growing.

To mark the phenomenal growth witnessed over the last four

decades, the Group recently unveiled its new brand identity marking

a very important milestone in its journey and reflecting a new

beginning for the Group. A new brand identity reinforces all the

positives to fulfill our vision to be a global entrepreneur through the


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power of positive action.

We aim to have a robust value system comprising positive attitude,

positive action and positive achievement.

We endeavour to create enduring value for customers and

stakeholders in core manufacturing and service businesses, through

world-class operating standards, state-of-the-art technology and the

positive attitude of our people.

Corporate profile

Moving beyond Indian frontiers, the Essar Group continues to grow

internationally through focused strategies

The Essar Group is a multinational conglomerate and a leading player in the

sectors of steel, oil and gas, power, communications and business process

outsourcing (BPO), shipping, ports and logistics, projects, and minerals. With

operations in more than 20 countries across five continents, the group employs

70,000 people, with revenues of USD 15 billion. With manufacturing facilities

in India, Indonesia, Canada and North America, Essar Steel is a global steel

producer with a capacity of 14 million tonnes. The company is fully integrated,

from iron ore mining to steel retail. It operates specialized plants to manufacture

value-added products like plates and pipes. It is also a leader in cold rolled,

galvanized and pre-coated steel products. Essar Steel operates a global steel

retailing and processing network that spans India, Indonesia, UAE and the UK.

Essar Oil is an end-to-end player in the oil and gas sector \ from exploration to

refining to retail. It owns a portfolio of 17 onshore and offshore oil and gasblocks in Asia, Africa and Australia. The company is a leader in the exploration

of coal bed methane gas. Essar Oil has a 300,000 barrels per stream day (bpsd)

refinery at Vadinar in Gujarat, India. This refinery is being expanded to 405,000

bpsd, with the complexity being enhanced by almost double. The company has

a 50 percent stake in an 80,000-bpsd refinery in Kenya. Essar Oil is also among

the leading oil retailers in India with over 1,370 outlets, which is being

expanded to 1,700 outlets.


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Essar Power is among Indiafs top private sector power producers with a current

generation capacity of 1,600 MW spread across five power plants in India and

Canada. This capacity is being expanded to 6,100 MW by 2012, and to 11,470

MW by 2014, through the addition of seven new power plants in various parts

of India. The combined assets of Essar Power and Essar Oil constitute Essar

Energy plc, a company that was listed on the London Stock Exchange in 2010

following a highly successful Initial Public Offer (IPO), the second largest

overseas IPO ever floated by a company of Indian origin. Essar Energy is part

of the FTSE 100, UK's top 100 companies by market capitalization.

Essar Communications is a global player in the communications sector with a

presence in telecom services (over 120 million subscribers in India, Kenya,

Uganda and Congo), as well as consumer durables and IT retail (over 1,200

outlets). In India, Essar Communications has a 33 percent stake in Vodafone

Essar, one of the countryfs largest telecom players.

Aegis is Essar's BPO arm. It serves Fortune 500 companies across 10 countries

through 47 delivery centers. It has launched many innovative initiatives in the

services sector, the latest being the Institute of Customer Experience

Management, which grooms managers for the services industry.

Essar Shipping Ports & Logistics is an integrated logistics solution provider

with a presence in shipping (25 vessels servicing steel and oil and gas majors),

ports and terminals (cargo-handling capacity of 76 million tonnes that will

expand to 158 million tonnes), and oilfield drilling services (fleet of 13 rigs

serving oil and gas exploration companies), as well as logistics. The company is

among India's largest port operators and is adding 12 new ships as well as two

new jack-up rigs to its already diversified fleet

Essar Projects has world-class engineering, procurement and construction

(EPC) capabilities that have helped build all of Essar's industrial assets in India

in the sectors of steel, oil and gas, power, and ports and terminals. The

company, which is among India's top three EPC contractors, is increasingly

using its expertise to execute large external projects across the world.

Essar Minerals owns a growing portfolio of iron ore and coal mines in India,

Indonesia, Mozambique and the USA. It also has an iron ore prospecting license


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in Brazil and various states in India. The company has access to over 1.6 billion

tonnes of iron ore reserves and 450 million tonnes of coal reserves.

Board of directors

Listed here are the promoter directors of the Essar Group. Each

company under the Group is independently run by a team of

professionals

Promoter Directors

Mr Shashi Ruia

Chairman

Essar Group

Mr Ravi Ruia

Vice Chairman

Essar Group

Mr Prashant Ruia

Group Chief Executive

Essar Group
http://www.essar.com/upload/pdf/Essar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Shashi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Ravi_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Prashant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Prashant_Ruia_Profile.pdf


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Mr Anshuman Ruia

Promoter Director

Essar Group

Ms Smiti Kanodia

Promoter Director

Essar Group

Mr Rewant Ruia

Promoter Director

Essar Group

Management team

Mr J Mehra Director, Essar Group

Mr Malay Mukherjee CEO, Steel Business Group

Mr Naresh Nayyar CEO, Energy Business Group

Mr Rajiv Agarwal MD & CEO, Essar Shipping Ports &

Logistics Ltd.

Mr Rajiv Sawhney CEO, Telecom Business Group

Mr Aparup Sengupta CEO, Aegis Ltd.

Mr Alwyn Bowden CEO, Projects Business Group

Mr Pradeep Mittal CEO, Minerals & Mining Business

Mr Vikash Saraf Director, Strategy & Planning, Essar Group

Mr V Ashok CFO, Essar Group

Mr Adil Malia Group President, Human Resources

Mr SM Lodha Group President, Assurance and Cost Control

Mr Sunil Bajaj Head, Corporate Relations Group
http://www.essar.com/upload/pdf/Essar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Anshuman_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Smiti_Kanodia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Rewant_Ruia_Profile.pdfhttp://www.essar.com/upload/pdf/Essar_Rewant_Ruia_Profile.pdf


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Businesses

Essar Global Limited is a diversified business corporation with a

balanced portfolio of assets in the manufacturing and services sectors

of :

Steel : Essar Steel is a global producer of steel with a footprint

in India, Canada, USA, the Middle East and Asia.

Energy: Essar Energy is a world-class, low-cost, Indian

focused energy company with an established track-record and

US$8 billion of assets.

Oil and Gas: Essar Oil operates a fully integrated oil company

of international size and scale

Power: Essar Power, Indias second largest power generation

company in the private sector, has a total installed generationcapacity of 1,600 MW.

Communications: Essar Telecom Infrastructure is one of the

largest independent telecom infrastructure service

provisioning companies in the country.

Shipping ports and logistics and : Essar is an integrated

logistics solution provider with investments in

ports and terminals, logistics services, sea


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transportation and oilfield drilling services

Construction :Essar Projects Limited drives our businesses in

the construction sector. We own one of Asias largest banks of

sophisticated construction equipment

We believe in seizing opportunities to expand our reach.

Essar in oil & gas

Essar Oil operates a fully integrated oil company of international size

and scale

Essar Oil's assets include developmental rights in proven exploration

blocks, a 14 MTPA refinery on the west coast of India and over 1,376

Essar-branded oil retail outlets across India. Plans are under way to

increase its exploration acreage in various parts of the globe, expand

its refinery capacity to 18 MTPA, and open 1,700 outlets

countrywide by March 2011.

Our global portfolio of onshore and offshore oil and gas blocks, with

about 45,000 sq km is available for exploration. We have over300,000 bpsd (barrels per stream day) of global crude-refining

capacity that is being expanded to 375,000 bpsd, with the refining

capacity being enhanced by almost double. We have a controlling

stake of 50 percent stake in Kenya Petroleum Refineries Ltds

80,000-bpsd refinery; the remaining 50 percent is owned by the

Kenyan government.

Global exploration portfolio


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We are aggressively growing our presence in the Exploration and

Production business. We have 2C contingent resources of 148

mmboe (million barrels of oil equivalent), and best estimate

prospective resources of 1,012 mmboe.

Largest CBM player in India

We have an acreage of over 2,700 sq. km in India, which gives us the

largest CBM acreage in the country. Our CBM block in Raniganj is

close to commercial production and has signed customer contracts

with several companies.

Large refining capacity

We have a 14 MTPA refinery at Vadinar in Gujarat, which started

commercial production on May 1, 2008. It has been built with state-

of-the-art technology and has the capability to produce petrol and

diesel suitable for use in India as well as advanced international

markets.

It will also produce LPG, Naphtha, light diesel oil, Aviation Turbine

Fuel (ATF) and kerosene. The refinery has been designed to handle a

diverse range of crude from sweet to sour and light to heavy. It is

supported by an end-to-end infrastructure setup including SBM

(Single Buoy Mooring), crude oil tankage, water intake facilities, a

captive power plant (currently 500 MW, being expanded to 1,200

MW), product jetty and dispatch facilities by both rail and road.

We have made huge investments in installing the most advanced

equipment and units in our refinery. At 97 m, the refinerys crude

column is Asias tallest and capable of enhanced separation of

petroleum products. The DHDS reactor is also the largest in its

category capable of producing Euro V compliant diesel. The refinery

is, in fact, unique in its complexity and its ability to produce value-

added products. All units have operated many notches over their

rated capacities with the crude unit achieving over 14 million tonnes

(300,000 bpsd) in the very first year of operation. This is a first for

any refinery in India. We are expanding the refinery capacity to 18

million tonnes with an increase in its complexity from 6.1 currently


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to 11.8 on the Nelson index. As part of a continuous optimization

programme, the company has decided to further expand the refinerys

capacity by 2 million tonnes to 20 million tonnes (405,000 bpsd) by

September 2012. If market conditions are favourable, the capacity

will be enhanced further to 38 million tonnes, with a complexity of

12.8.

Until date, our Vadinar refinery has successfully processed more than

32 varieties of crude from across world, including some of the

toughest crudes. Plans are afoot to expand the refinery capacity

threefold in the next few years. Post expansion, the Vadinar refinery

will be among the five largest single-location refineries in the world.

Retail and Marketing

Essar Oil serves retail customers through a modern, countrywide

network of over 1,376 retail outlets, with plans to increase the

numbers to 1,700 retail outlets by March 2011. We were the first

private Indian company to enter petro retailing, looking beyond urban

markets and reaching out to consumers in Indias heartland.

We offer a wide range of products to bulk customers in the industrial

and transport sectors. EOL has product offtake and infrastructure

sharing agreements with oil PSUs, namely Bharat Petroleum

Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd

(HPCL) and Indian Oil Corporation (IOCL). We have received

approvals to supply Aviation Turbine Fuel (ATF) to the Indian

Armed Forces


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Exploration and production

We have a highly enriched technical team who believe in using the best

international oil industry practices

The Exploration and Production (E&P) business of the company hasparticipating interests in several hydrocarbon blocks for exploration and

production of oil and gas. Spanning Asia, Africa and Australia, we have a

diverse portfolio of offshore and onshore oil and gas blocks as well as Coal

Bed Methane (CBM) blocks.

Portfolio

Ratna and R-series fields near the Mumbai High field in the Mumbai

offshore basin

50 percent interest in one shallow water offshore exploration block MB-

OSN-2005/3, near the Mumbai High field in the Mumbai offshore basin

70 percent operating interest in Mehsana oil and gas block that has

started crude production

100 percent interest in 1 CBM block in Rajmahal, Jharkhand

100 percent interest in 1 CBM block in Raniganj, Durgapur, West


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Bengal, which is close to commercial production

100 percent interest in 1 CBM block in Sohagpur (Parts of Madhya

Pradesh and Chhattisgarh)

100 percent interest in 1 CBM block in Talcher, Orissa

100 percent interest in 1 CBM block in IB Valley, Orissa

100 percent interest in 2 exploration blocks in Assam

100 percent interest in 1 exploratory block in Nigeria shallow offshore

100 percent interest in 1 oil and gas block in Vietnam

100 percent interest in 2 exploratory blocks in Madagascar

100 percent rights in 2 exploration blocks in Northern Territory,

Australia offshore

49.5 percent interest in 1 on-land exploration South East Tungkal block

in Indonesia

We were the first Indian company to recognize the CBM potential in India in

the early 1990s, and undertake drilling, hydro-fracturing and de-watering ofthree CBM wells, in the Cambay Basin near Mehsana, Gujarat, India. The

economic viability of the project was established through this pioneering

work.

We are a horizontally integrated enterprise with full service capability

including drilling rigs, services equipment, engineering and construction,

etc. that are important business segments of the Group. The multi-

disciplinary team approach facilitates the use of resources in personnel,hardware / software and the right alliances to adopt best practices in

exploration and development.

Essar Oil has set up a highly enriched technical team that includes

geologists, geophysicists, petrophysicists, petroleum engineers, reservoir

engineers, well loggers, project managers and drillers, along with a highly

motivated management team, consisting of specialists in finance, business

development, logistics, human resources, and project consultancy. This teamoperates all our E&P blocks using best international oil industry practices


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with due regard to health, safety and environment, and also respecting the

local socio-political environment in the various countries of operations.

Refinery

Essar's oil refinery at Vadinar in Jamnagar, Gujarat, is ideally located on

India's west coast in proximity to the crude-rich gulf states

Vadinar is an all-weather, deep-draft natural port. About 70 percent ofIndia's crude imports land in and around this region. Besides, the refinery'slocation enables access to the fast-growing markets in the north and westernregion of India through product pipelines. The eastern and southern parts of

India will be serviced through the coastal route circling the country.

This world-class 14-million tonne refinery produces fuels compliant withlatest emission standards, and is being progressively expanded to 20 milliontonnes (405,000 bpsd) by September 2012.

The refinery has been built with state-of-the-art technology with technicaland project assistance from the world's leading consultants and equipmentsuppliers in the field. It is designed to handle a diverse range of crude mixes.

The world-class refinery produces middle distillates like Aviation TurbineFuel, kerosene oil and high-speed diesel, as well as LPG and transport fuelsconforming to Euro III and Euro IV product quality standards. Postexpansion, the refinery will have a Nelson Complexity of 12.8 with acapability of processing tougher crudes and producing petroleum products ofvery high quality, meeting Euro V standards.

The refinery is fully integrated with its captive power plant (currently 500MW being expanded to 1,200 MW), port and terminal facilities. It includesrail, car and truck loading facilities and a Single Point Mooring (SPM)


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capable of handling vessels up to 350,000 dead weight tonnage with amarine product dispatch capacity of 14 million tonnes.

The refinery has built-in environment friendly technologies for pollution

management. A self-sustainable, 700-acre greenbelt with over three lakhsaplings has been developed to ensure a green corridor around the entirerefinery complex.World-renowned processes - with the world technology leaders at work.

In Mombassa, Kenya, we have a 50 percent stake in a 80,000-bpsd refineryrun by the Kenya Petroleum Refineries Ltd (KPRL); the remaining 50

percent is owned by the Kenyan government.

Major units

Crude Distillation Unit: Current potential capacity of 14 million tonnes

Vacuum Distillation Unit: Current potential capacity of 7.2 million

tonnes

Vis Breaker Unit: Current potential capacity of 2.23 million tonnes

(Axens, France)

Continuous Catalytic Regenerator: Current potential capacity of 1million tonnes (Axens, France)

Fluid Catalytic Cracking Unit: Current potential capacity of 3.36 million

tonnes (Stone & Webster)

Diesel Hydro Desulphurisation unit: Current potential capacity of 4.5

million tonnes (Axens, France)

Naphtha Hydro Treater: Current potential capacity of 1.67 milliontonnes

Dedicated infrastructure includes a captive power plant (currently 500

MW, being expanded to 1,200 MW), dispatch facilities by rail, road, sea

and pipeline, associated tankages, pipelines, water intake facilities, and a

Single Buoy Mooring system, which can accommodate Very Large

Crude Carriers, to receive crude


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Marketing

Our retail outlets seek to redefine the way fuels are retailed in India

Retail businessThe retail business unit of Essar Oil is oriented towards delivering

better and faster service to its customers. Essar pioneered the conceptof setting up retail outlets using the franchisee-owned, franchisee-operated model. With a pan India network of 1,376 retail stations,Essar reaches every corner of the country covering the national andstate highways and the rural areas, plans to increase the numbers to1,700 retail outlets by March 2011. Essar Oil supplies high quality

Petrol and High-Speed Diesel.

Our widespread network has created an excellent land bank resultingin the development of Non-Fuel Retail (NFR). It is a promising

business channel for our retail today since it facilitates high footfalls,increased customer activation and high recall value with a profitableutilization of the retail site.

All NFR activities are designed to serve the varying needs of our

customers. This has created some mutually beneficial alliances acrossvarious categories such as Automobiles, Lubricants, Agrochemicals,Banking, Telecom and Food and Beverages. These tie-ups withleading players such as Exide, SERVO, CASTROL, TOTAL, ELF,SBI and Western Union Money Transfer and Amul have facilitatedmaximum customer convenience and satisfaction. A recent additionin the Non Fuel Retail is the take away counter of the popular BiryaniHouse in Hyderabad.Today, we are slowly emerging as a one stop destination for all the

retail customers with ever changing needs.


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Bulk businessEOL offers a wide range of products to bulk customers in theindustrial and transport sectors. A range of petroleum productscovering numerous applications are on offer to industrial customers

like power plants, and chemical, fertilizer and shipping companies. Ithas received approvals to supply Aviation Turbine Fuel (ATF) to theIndian Armed Forces, and has tie-ups with oil marketing companies,namely Bharat Petroleum Corporation Ltd (BPCL) and HindustanPetroleum Corporation Ltd (HPCL).

Bulk products currently offered by us:

Product Application

LPG Domestic fuelSKO Domestic fuel

ATF Commercial airlines, defense services

Furnace oil (180 Cst / 380 Cst) DG set, boiler, furnace, marine

Bitumen feed stock Process, industrial

Sulfur Chemicals industry

MS (BS II, BS III) Automotive fuel

HSD (BS II, BS III) Automotive fuel, industrial, DG set


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Export of Oil &petroleum Product

India's average petroleum products export grew from 0.77 million barrels a day

in January 2009 to one million barrels a day in August 2009. In the current year,

the average oil products export from India stands at 1.07 million while South

Korea exports average 0.88 million.

In fact, India's refining capacity at 3.69 million barrels a day is the third largest

in Asia after China and Japan, which have a refining capacity of 9.6 million bpd

and 4.64 bpd respectively. Platts compilation is based on the data from

individual countries.

Both Reliance Industries' Jamnagar and Essar's Vadinar refineries contribute

more than 90 per cent of the petroleum products exports while the rest is by

public sector oil companies, said Ms Vandana Hari, Asia Editorial Director,

Platts.

According to her, petroleum products exports from India holds great potential as

both RIL and Essar have high complexity refineries which make products that

meet Euro IV and Euro V standards. Europe, the US and Africa are identified

major markets for Indian refiners.

Growing demand

The growing overseas demand for petroleum products from India is reflected inexport volume growth of Reliance and Essar. RIL exported 32.8 million tonnes

of refined products last fiscal against about 22.6 million tonnes for the previous

period, fetching revenue of $20.9 billion (Rs 1,10,176 crore).

Essar's Vadinar refinery has a total current throughput capacity of 14 million

tonnes a year. Of the total production, about 30 per cent is exported while more

than sixty per cent of refined products are sold to public sector oil marketing

companies.


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Reliance Industries and Essar Oil are among about half a dozen firms in race to

buy crisis-hit British energy giant BP's fuel marketing assets in east African

countries.

Reliance and Essar have offered between $400 to 500 million for BP's assets inthe East African nation, they said.

Essar Oil had last year acquired a 50 per cent stake in 4 million tons a year

Kenya Petroleum Refinery in Mombasa.

Essar Oil picks up 50 % stake in Kenya-based refinery

Ruias-owned Essar Oil today announced acquisition of 50 per cent stake in a 4

million-tonne oil refinery in Kenya. The company acquired 50 per cent stake of

western energy majors Shell BP and Chevron in Kenya Petroleum RefineriesLtd, Essar said.
http://economictimes.indiatimes.com/reliance-industries-ltd/stocks/companyid-13215.cmshttp://economictimes.indiatimes.com/essar-oil-ltd/stocks/companyid-9179.cmshttp://economictimes.indiatimes.com/reliance-industries-ltd/stocks/companyid-13215.cmshttp://economictimes.indiatimes.com/essar-oil-ltd/stocks/companyid-9179.cms


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Imports of Oil & petroleum product

According to Oil & Gas Journal (OGJ), India had approximately 5.6 billion

barrels of proven oil reserves as of January 2010, the second-largest amount in

the Asia-Pacific region after China. Indias crude oil reserves tend to be light and

sweet, with specific gravity varying from 38 API in the offshore Mumbai High

field to 32 API at other onshore basins.

India produced roughly 880 thousand barrels per day (bbl/d) of total oil in 2009

from over 3,600 operating oil wells. Approximately 680 thousand bbl/d wascrude oil, the remainder was other liquids and refinery gain. In 2009, India

consumed nearly 3 million bbl/d, making it the fourth largest consumer of oil in

the world. EIA expects approximately 100 thousand bbl/d annual consumption

growth through 2011.


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Nearly 70 percent of Indias crude oil imports come from the Middle East,

primarily from Saudi Arabia, followed by Iran. The Indian government expects

this geographical dependence to rise in light of limited prospects for domestic

production.

Downstream/Refining

Essar Oils Vadinar refinery expansion of 110,000 bbl/d in 2011, 120,000 bbl/d

greenfield refinery in Bina in 2011 by a joint venture between Bharat Petroleum

Corporation Limited and Oman Oil Company Limited, a 180,000 bbl/d

grassroots refinery in Bhatinda in 2014 by Hindustan Petroleum Corporation

Limited, and IOCs grassroots Paradeep refinery of 300,000 bbl/d in 2015. India

is slated to add 840 thousand bbl/d of refining capacity through 2015 based on

currently proposed projects.


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Questionnaire

(Answers are given by Mr. Jagdish Narwekar)

1) Your Exports are in which countries?

Ans : Our business is mainly with Asian and African countries. We are

exporting our products to UK, Dubai, Singapore, Kenya, South Africa etc.

2) Which benefits you receives from government at the time of recession?

Ans: While importing crude oil from other country we have to pay 5 % custom

duty to government, but at the time of recession government removed that

custom duty only that much benefit is given by the gornment nd after recession

government again imposed that duty.

3) Any problems occur at the time of import or export?

Ans: We didnt faced any problem at the time of export till now. But recently

while importing crude oil from Iran we faced some payment related problem.

4) Do you think custom formalities are more than enough?

Ans: Yes, I think it is sufficient.

5) Any difficulties incurred during export/import documentation procedure?

Ans: No , all the documents are standard documents so no difficulty.

6) Any company which gives you neck-to-neck competition? Name them.

Ans: Reliance industries are our big competitors. Also Government industries

like Indian oil, Bharat petroleum (BPC), HPCL etc.

7) What is the source to get information from overseas market?

Ans: Various business related magazines, Newspapers, Business news channels,

Websites etc. are our sources of informations.


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8) What kind of strategy do you have, which keeps good relation with

foreign buyers?

Ans: As our company is one of the leading company in this business, our

customers have faith on us. We gave quality product to our customer, timelydelivery of product. And as per our importers are in concerned we gave them

payment on time.

9) Could you give us an example how Chambers of commerce helps out

your company in export / import trading?

Ans: As I said before our company is a big company and we are having many

years experience in this field, so we dont need the help of any govt

organization. Only we do our trading.

10) Which types of bills of exchange do you use?

(Documents are send 1st & then payments or payments 1st then

documents)

Ans: Documents are send 1st then payment for that 30 min time period is given.

11) Name the major countries in which your company product are been

delivered?

Ans: As I said before, Our business is mainly with Asian and African countries.

We are exporting our products to UK, Dubai, Singapore, Kenya, South Africa

etc.

12) Your company turnover goes around?

Ans: Around 50,000 cr. p.a

13) Do you have clearing and forwarding agent to sell your in overseasmarket?

Ans: Yes we have, our offices are also there in UK, Kenya and other African

countries.


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Conclusion

Essar ltd. is a big organization. They are actively present in many business. Our

project is mainly concerned with Essar oil and petroleum Ltd. Through our this

project we learned the lots of things about the Import/Export.

For good export and import company should maintain good relations with

their customer.

If any problems or difficulties occurred during exporting or importing

company should solved that problem in right manner because not only the

companys image but the countrys image is also involved in that.

There should be mutual understanding between both the parties who are

doing business with eachother.

They should have faith on each other.

And last but not the least quality product , timely delivery and payment

on time these are the important things while importing as wel as

exporting.


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Bibliography

www.essar.com

Wikipedia

www.google.com

Times of India
http://www.essar.com/http://www.google.com/http://www.essar.com/http://www.google.com/