Shashikant Ruia, the patriarch of the Essar Group, passed away on November 26, 2024, at the age of 81. A key figure in the evolution of India’s industrial landscape, his leadership and vision helped shape Essar into one of the country’s largest and most diversified conglomerates. From humble beginnings to becoming a global industrial powerhouse, Ruia’s career is a testament to his foresight, resilience, and business acumen.
Born into a family with a long-standing business legacy, Shashikant Ruia began his journey in business at a young age. His father, Kishore Ruia, had established a family business in Chennai in the 1950s, but after his untimely death in 1969, Shashikant and his younger brother, Ravi, took charge of the venture. It was in 1970 that they co-founded Essar Group, initially a small construction company. The name "Essar" is derived from the first letters of Shashikant and Ravi’s names, a lasting tribute to the brothers’ bond and partnership in building the group.
Under Shashikant Ruia’s leadership, Essar expanded rapidly across multiple sectors. He had an innate ability to identify emerging opportunities and diversify the group into industries like steel, energy, oil exploration, telecom, and shipping. By the 2000s, Essar was not just a domestic player but a global enterprise with operations spanning over 20 countries. One of the most significant milestones in the group’s journey came in 2011, when Essar acquired the Stanlow Refinery in the United Kingdom from Royal Dutch Shell, marking the company’s entry into the international oil market.
In the telecom sector, Essar became a significant player, with the company’s mobile business reaching millions of customers. Essar’s exit from telecom in 2011 was another high point; the group sold its stake to Vodafone for an impressive $5 billion, marking one of the largest deals in the Indian telecom industry at the time. This sale was hailed as a strategic move that earned the Ruias massive returns on their investment, reinforcing their reputation for turning ventures into successful global businesses.
However, Essar’s rapid expansion came with challenges. The group’s strategy of aggressive borrowing to fund large-scale acquisitions and projects eventually led to mounting debt. By 2017, Essar’s total debt had ballooned to approximately ₹1.35 trillion, making it one of India’s most indebted conglomerates. The steep decline in global steel prices, overcapacity in the sector, and delays in major projects further compounded Essar’s financial troubles. Despite these setbacks, Shashikant Ruia remained resolute, always focused on resolving the issues without compromising the group’s long-term vision.
In response to these financial challenges, Essar began a process of asset sales to reduce its debt. Key assets such as Essar Steel and Essar Oil were sold off in landmark deals. In 2019, Essar Steel was acquired by a consortium led by ArcelorMittal and Nippon Steel, while Essar Oil’s assets were sold to Rosneft, a Russian state-owned oil company, for $13 billion. These sales helped the group pay down its debt and reposition itself for the future.
Despite the financial difficulties, Shashikant Ruia’s leadership and vision for the company remained steadfast. After his son, Prashant Ruia, took over the reins, Essar started its turnaround journey with the launch of Essar 2.0, a new phase focused on innovation and sustainability. The group’s renewed focus on steel and green hydrogen projects, including investments in the U.S., India, and the Middle East, shows the legacy of Shashikant Ruia’s forward-thinking strategy. Essar is investing $4 billion in an integrated flat steel plant in Saudi Arabia, which is expected to be commissioned by the end of 2025.
Ruia’s contributions extended beyond business. He was deeply respected in India’s industrial community for his leadership style, which combined hard-headed pragmatism with an unwavering commitment to the values of integrity, innovation, and social responsibility. Politicians, business leaders, and former colleagues have paid tribute to his leadership and vision. Indian Prime Minister Narendra Modi expressed his condolences, describing Ruia as a "colossal figure in the world of industry," whose visionary leadership transformed India’s business landscape.
Shashikant Ruia’s legacy will remain a guiding force for Essar Group and its future endeavors. His achievements have not only left an indelible mark on Indian industry but have also set benchmarks for global business excellence. As Essar moves forward, it will continue to build on his vision, driving growth, sustainability, and innovation in the years to come.
