Shashikant Ruia, patriarch of the billionaire Ruia family and co-founder of the Essar Group of companies, died on Tuesday, the family announced in a statement. He was 81.
Condoling Ruia's death, Prime Minister Narendra Modi said, "Shri Shashikant Ruia Ji, was a towering figure in the world of industry. His far-sighted leadership and his very commitment to excellence transformed the business landscape of India. He set high benchmarks for innovation and growth. He never ran out of ideas, constantly discussing how he can make this country better.
"Shashi Ji’s demise is deeply saddening. My deepest condolences to his family and loved ones in this hour of grief," Modi said.
The Essar Group is currently led by his younger brother Ravi and his sons Prashant and Anshuman.
Ruia, alongwith Ravi, founded the Essar Group which went on to set up some of India's biggest projects, including India's biggest single location oil refinery in Jamnagar in the late 90s. The Ruias sold the refinery to Rosneft of Russia for $13 billion in one of the largest foreign direct investments into India in 2017. The group had also established a 10 mtpa steel plant at Hazira, Gujarat in the mid-90s, which ArcelorMittal acquired in an auction conducted by the banks in 2018. The fortunes of the project changed after its operations were hit by lack of gas supply from the central government.
Beginning his career from Chennai in the late seventies, brothers Shashi and Ravi moved to Mumbai in the 1980s to expand the business further. During the course of three decades following the opening up of the Indian economy, they diversified into various sectors, including oil and gas, steel manufacturing, mining, ports, shipping, power and telecommunications. Today, the group has a 33 per cent 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.
The name of the group was derived from the first letters of both brothers Shashi and Ravi. The group became a global conglomerate as it acquired Stanlow refinery in the United Kingdom alongwith its retail outlets in 2011 from Royal Dutch Shell.
Old timers recall Shashi Ruia as a humble, down-to-earth person who would often mentor young people in the organisation. While setting up the Hazira project near Surat, Ruia would often take the overnight train from Mumbai to oversee the project. Ruia would also consult late Tata group chairman Ratan Tata on the future of the Indian steel industry despite being rivals in the sector, recall old timers. "He would like to remain low-key and let his projects speak," says a CEO of a rival group, requested not to be quoted.
The group currently owns a refinery in the United Kingdom, as well as renewable power projects in India and overseas, and digital infrastructure firm Black Box.
The Essar group said in a statement: "He dedicated himself to the upliftment of the community and philanthropy as an unyielding value-commitment and touched millions of lives. His humility, warmth, and connection with everyone made him an extraordinary leader."
An iconic industrialist, Shashikant Ruia, played a great role in redrawing the contours of India's corporate landscape. He founded the Essar Group and grew it into an international conglomerate. His extraordinary legacy will be a guiding light for all of us, as we honor his vision and continue to uphold the values he cherished and championed," said the statement.
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