Shashikant Ruia, Patriarch of the Ruia and Essar Family, has passed away. He was 81.

“Ruia, Chairman, Essar Group, played a significant role in redefining India’s corporate landscape. He laid the foundation of the Essar Group and made it a global conglomerate,” said a statement from the group. 

“Shashikant Ruia’s 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,” it added. 

Shashi Ruia was born into a family with a long-standing business legacy in Rajasthan, India. His father, Kishore Ruia, relocated to Chennai in 1956 to establish an independent business. Following Kishore Ruia’s untimely death in 1969, Shashi and his younger brother Ravi took over the family enterprise and laid the foundation for what would become Essar, now a global conglomerate.

Shashi began his journey in the family business in 1965, displaying foresight and ambition by diversifying into industries such as infrastructure, steel, shipping, oil exploration, and telecom. This diversified focus helped Essar emerge as a major player across multiple sectors both in India and internationally, with operations in over 20 countries. “ There was a time when whatever Shashi touched turned into gold. For example, the telecom business became one of the biggest success stories of Essar group when Ruias exited the venture with massive return on investment,” said an industry executive who worked with Shashi closely.

However, this ambitious expansion relied heavily on leveraging debt, which ultimately became a defining challenge for the group.

The Ruias’ strategy often involved borrowing heavily to fund large projects and acquisitions. Essar Steel, one of the group’s flagship ventures, faced financial difficulties multiple times, beginning as early as 2000. A global downturn in steel prices, overcapacity, and delays in critical projects compounded the group’s challenges. By 2017, Essar’s total debt had reached ₹1.35 trillion, making it one of India’s most indebted conglomerates. Over the next few years Essar had to sell some its crowned jewels including the steel and oil businesses to clear the debt.

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