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. The group’s name was derived from the first letters of both brothers Shashi and Ravi.
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. The biggest move in the journey to became a global conglomerate came in 2011 when Shashi-led Essar acquired Stanlow refinery in the United Kingdom alongwith its retail outlets in 2011 from Royal Dutch Shell.
“ 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. Essar sold its stake in the telecom venture to Vodafone for $5 billion in 2011.
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.
“ It was a tough decision to sell these crown jewels which the Ruias had built from scratch. However, both Sashi and Ravi were very clear that the group should clear off its debts. Even through those difficult times, Shashi remained the calming force. Following the debt resolution, he prompted his son Prashant to come up with the Essar 2.0 plan which is now being put into action,” said a former Essar group executive.
The group, under Prashant, is back in the steel business but it is hedging its bets across the US (Minnesota), India (Odisha) and the Middle East (Saudi Arabia) from pellets to finished steel with a total investment of around $8 billion. The group is investing about $4 billion on an integrated flat steelwork in Saudi Arabia, which is scheduled for commission by the end of 2025. Essar is also undertaking a blue hydrogen project in the UK, through its joint venture Vertex, developing a green ammonia import terminal in the UK.
Tributes poured in from politicians, industrialists.
“Deeply saddened by the passing of Shashi Ruia ji, a visionary leader and co-founder of Essar Group. His contributions to the industry will always be remembered,” said Salman Khurshid https://x.com/salman7khurshid/status/1861261236551237728