BUSINESS

Essar to revamp businesses



Staff Correspondent

Shipping, terminaling and logistics divisions to be restructured

MUMBAI: Essar Global Ltd. (EGL) has announced the restructuring of its businesses in shipping, terminaling and logistics. In order to provide a sharper focus on its business and increase shareholder value, EGL has formed a fully owned subsidiary, Essar Shipping and Logistics Ltd. (ESLL), registered in Cyprus.

Essar Global's investments in infrastructure portfolio comprise investments in Essar Steel, Essar Oil, Essar Power, Essar Shipping and Logistics, telecommunication and technology and industrial construction and engineering. According to the reorganisation plan of the shipping business, ESLL will have three operating companies under its umbrella Essar Shipping Ltd. (ESL), Essar Logistics Ltd. (ELL) and Vadinar Oil Terminal (VOTL).

Port services

ESLL will hold 77 per cent in Essar Shipping has a special focus on transportation solutions for the global energy business. Essar Logistics Ltd. is fully owned by ESLL and will carry out the business of logistics management, trans-shipment and port services.

VOTL is fully owned by ESLL and will focus on ports and terminals. It has set up a 32-million tonne terminal facility in Vadinar, Gujarat, which will be operational by the end of September. The Vadinar port is an all-weather deep draft port and will serve major oil refineries and traders in the region.

Sanjay Mehta will assume the responsibility of CEO of Essar Shipping and Logistics and will continue as Managing Director of ESL. A. R. Ramakrishnan, now Chief Operating Officer, has been inducted into the board of ESL as Executive Director and will be designated CEO.

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