Anyone who has met Shashikant Ruia would never forget his humility and good-naturedness. The iconic industrialist who played a significant role in redefining India’s corporate landscape in his heydays had this uncanny ability to connect with everyone he met. The pre-Diwali get-togethers at the Ruia family house by the Arabian Sea in Mumbai were, therefore, one of the most-attended events — not for the pomp and grandeur but for the guests’ genuine good wishes for the good, old fellow who passed away after a prolonged illness at age 81.
Ruia co-founded the metals-to-technology conglomerate Essar with his brother Ravi. The name was derived from the first letters of both the brothers. “It is with profound grief that we inform of the passing of Shashikant Ruia, patriarch of the Ruia and Essar Family,” Essar group said in a statement on Tuesday.
Ruia began his career in the family business in 1965 under the guidance of his father, the late Nand Kishore Ruia. His entrepreneurial spirit was evident from a young age. Declining an opportunity to study abroad, he instead chose to immerse himself in the family business. “I started by participating in meetings, listening and understanding, moving from one department to another,” Ruia once said. The culture of studying in the `Marwari school of management’ continued for the second generation as well.
Essar’s real journey began in 1969 when it won a major contract worth Rs 2.3 crore for the construction of an outer breakwater for Chennai Port. In 1991, the company became India’s first independent power producer and started a 515 MW cycle power plant at Hazira.
Over the next three decades, with the Indian economy opening up, the brothers diversified into several sectors including oil and gas, steel manufacturing, mining, ports, shipping, power and telecommunications with a 33% stake in a joint venture with Vodafone PLC. The group sold its stake in the telecom venture to their partner Vodafone PLC for $5 billion in 2011 in one of the most successful exits from the telecom sector.
Shashi Ruia’s vision saw Essar gain a first-mover advantage in many businesses. When the Indian telecom sector was opened up for private participation, Essar was among the first companies to offer mobile telephony services, it said. He also set up a steel complex, oil refinery and a shipping company.
Today, Essar Global Fund Limited (EGFL), which owns the businesses the brothers co-founded, is a global investor, owning a number of assets diversified across the energy, metals & mining, infrastructure, technology and services. The fund’s portfolio companies generate aggregate revenues of $14 billion. These companies operate more than 50 assets spread across the globe.
However, Shashi Ruia’s journey was not paved with only roses. Failure to repay mounting debt forced his group to lose two of its crown jewels. Essar Steel faced financial difficulties and was placed on the defaulter’s list by the Reserve Bank of India in 2017. ArcelorMittal won approval from the Supreme Court to take over Essar Steel and pay the creditors with equal rights in November 2019. Essar Oil, another crown jewel, was acquired by a consortium led by Rosneft, Trafigura, and UCP Investment Group for $12.9 billion and rebranded as Nayara Energy.
“Shashikant Ruia ji was a colossal figure in the world of industry. His visionary leadership and unwavering commitment to excellence transformed the business landscape of India. He also set high benchmarks for innovation and growth. He was always full of ideas, always discussing how we can make our country better. Shashi Ji’s demise is deeply saddening,” Prime Minister Narendra Modi said in his condolence message on X.
The family statement paid tribute to Ruia’s contributions to society, and said “his 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.”