Essar 2.0 Rising with a New Approach.pptx
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The Essar Group, one of the leading players in the country’s corporate landscape, recognised for its extensive investments and innovative projects, had a challenging phase in the late 2000s and early 2010s. The company was burdened with Essar Insolvency and debt repayments and thus had to sell few of its assets to strengthen its balance sheet. It later underwent a major transformation by adopting a new business model that is focused on asset-light operations. Though the new Essar is a smaller company than the old one, it is a much more focused and agile company. With a revenue of USD 15 billion, and Assets Under Management (AUM) of USD 9.6 billion Essar is well-positioned for future opportunities.
Essar 2.0 Rising with a New Approach.pptx
- 1. ESSAR 2.0: RISING WITH A NEW APPROACH
- 2. INTRODUCTIONS The Essar Group, one of the leading players in the country’s corporate landscape, recognised for its extensive investments and innovative projects, had a challenging phase in the late 2000s and early 2010s. The company was burdened with Essar Insolvency and debt repayments and thus had to sell few of its assets to strengthen its balance sheet. It later underwent a major transformation by adopting a new business model that is focused on asset-light operations.
- 3. HISTORICAL BACKGROUND 03 Essar, one of India’s ’largest and most diversified conglomerates, has made significant contributions to India’s industrial sector by investing in several large-scale projects. However, after the global financial crisis of 2008 and the subsequent debt accumulation, the company started experiencing some challenges.
- 4. TRANSFORMATION: SIGNIFICANT CHANGES The Essar Group has undergone significant changes, which makes it well- positioned for the future. The company is now more efficient, profitable, and sustainable and is in a position to capitalize on the key opportunities in the global economy. 04
- 5. FOCUS ON CORE BUSINESSES Post deleveraging too Essar remains focused on its core businesses of energy, metals & mining, Infrastructure & logistics, and technology & retail. This helps the company streamline its operations efficiently and profitably. Presently, Essar concentrates its investments in four core economy sectors. 07
- 6. ESSAR’S NEW VISION: GREEN MOBILITY, GREEN STEEL, AND RENEWABLE ENERGY Essar 2.0 is more focused on transitioning existing assets to green while investing in the sectors transforming clean assets within its focus sectors of energy, infrastructure, metals & mining, and tech & retail. The company’s strategies revolve around creating a business ecosystem around Hydrogen, Green Mobility and Green Steel.