MUMBAI: The business world mourns the loss of Shashikant Ruia, the 81-year-old co-founder of the Essar Group, who passed away this week. Along with his brother Ravi Ruia, Shashikant founded Essar in 1969, building a diversified empire that would span several industries, including construction, energy, steel, and telecommunications. His death marks the end of an era for Essar Group, a company that has had a significant impact on India’s infrastructure and industrial development.
The Founding of Essar Group
In 1969, Shashikant and Ravi Ruia took the first steps toward establishing Essar, initially focusing on infrastructure projects, particularly in construction and engineering. The company secured its first major contract worth Rs 2.5 crore from the Madras Port Trust, which involved building an outer breakwater. This marked the beginning of a journey that would see Essar Group become a key player in India’s industrial landscape.
The Ruias’ early success was built on a strong foundation of hard work, innovation, and a commitment to creating world-class infrastructure. Over the years, Essar expanded its footprint across various sectors, becoming a significant player in the energy, steel, and telecommunications industries.
A Visionary Leader
Shashikant Ruia was known for his visionary leadership and strong business acumen. Instead of opting for studies abroad, he chose to remain with the family business, focusing on driving Essar’s growth. His leadership style was characterized by a hands-on approach, where he closely observed operations across various departments and became directly involved in key decisions.
Ruia’s commitment to Essar’s growth was evident from a young age. By the time he was 17, he was already shouldering significant responsibilities within the Group, contributing to the company’s expansion and success. His strategic foresight allowed Essar to diversify and grow into a conglomerate with global reach.
Expansion into New Sectors
During the 1980s, Essar expanded its operations into the energy sector through strategic acquisitions in oil and gas. The company also made a significant move into the steel industry in the 1990s, establishing steel manufacturing facilities and positioning itself as a major player in India’s steel production.
In addition to energy and steel, Essar ventured into telecommunications, creating India’s second-largest telecom venture with Hutchison. However, over time, Essar divested its telecommunications interests and sold its oil refinery to a Rosneft-led consortium. The company also faced financial challenges, leading to insolvency proceedings and the eventual sale of its steel facilities to ArcelorMittal.
Despite these challenges, Shashikant’s leadership kept Essar on a path of growth and transformation, continuously adapting to the changing business environment and ensuring the Group’s continued relevance in the Indian and global markets.
Philanthropy and Community Engagement
Shashikant Ruia was also known for his deep commitment to community upliftment and philanthropy. Through Essar Foundation, the company undertook numerous initiatives aimed at improving the lives of marginalized communities, promoting education, and enhancing healthcare facilities. His philanthropic work left an indelible mark on the communities Essar served, and his focus on social impact remains a core value of the Group.
He was deeply respected for his humility, warmth, and ability to connect with people from all walks of life. His leadership extended beyond business, as he worked to foster better relations between India and other nations, serving on various prestigious national and international boards.
Contributions to Industry and Global Leadership
Shashikant Ruia’s influence extended far beyond the business world. He was an active participant in various national and international industry groups, playing a key role in shaping India’s economic policy. He served on the managing committee of the Federation of Indian Chambers of Commerce and Industry (FICCI), one of the country’s premier business associations. Ruia also chaired the Indo-US Joint Business Council and the Indian National Shipowners Association (INSA).
His leadership was recognized globally, and in 2007, he joined a distinguished group of leaders, including Richard Branson and Peter Gabriel, who provided funding for The Elders, a group of global leaders that seeks to address critical global challenges. The Elders included figures such as Desmond Tutu, Kofi Annan, and Jimmy Carter, all of whom worked together to make a positive impact on global peace and security.
Essar’s Legacy and the Future
Shashikant Ruia’s legacy will continue to inspire future generations of business leaders. His principles of innovation, resilience, and community engagement remain central to the values of Essar Group. While the company has faced significant challenges, including divestitures and restructuring, the Ruias’ foundational vision of contributing to India’s economic development continues to guide Essar’s operations today.
As Essar Group moves forward under the leadership of Ravi Ruia and other key executives, the values instilled by Shashikant will remain a strong guiding force. His remarkable legacy will continue to shape the Group’s future, ensuring that his commitment to growth, philanthropy, and community service lives on.
Conclusion: A Legacy of Leadership and Innovation
Shashikant Ruia’s passing is a significant moment in the history of Essar Group and Indian business. His vision, leadership, and commitment to societal development have left a lasting imprint on both the company and the wider Indian economy. As Essar Group continues its journey, it will undoubtedly build on the legacy that Shashikant Ruia leaves behind.
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