Portfolio

Diversified across core economic sectors

India

2009

Active

Essar Ports is one of India’s largest private sector port and terminal developers and operators. It has invested INR 11,000 crore in developing world-class terminals in three Indian states. Its current operations span four terminals with a combined capacity of 110 MTPA, which is roughly 5 percent of India’s port capacity. The Company is a leader in the non-containerised bulk cargo space. Having clocked a throughput of 40 MT in FY19, Essar Ports is expecting to handle over 60 MT in the current financial year.

All Essar Ports terminals are equipped with advanced cargo handling infrastructure and are well poised to double capacity in the near to medium term. The Company is working in tandem with the Government of India to meet its ambitious target of developing 3,130 MT of port capacity in the country by 2020.

Outside India, Essar’s port assets include a liquid terminal in the UK and a coal berth in the development stage at Mozambique’s Beira port.

India, Canada

1997

Active

Essar Power is one of India’s largest private sector power producers with a capacity of almost 3,900 MW across six multi-fuel plants in three Indian states and one thermal power plant in Canada. Of this, the Company operates 2,400 MW as an Independent Power Producer (IPP) with plants in Madhya Pradesh and Gujarat. The remaining are Captive Power Plants (CPP) in Gujarat & Odisha. Essar Power has also invested in the transmission business and constructed a 465-km interstate transmission system which spans three Indian states.

Essar has invested about INR 32,000 crore in the power portfolio, which includes INR 12,000 crore of equity. The company aims to bring down leverage in its balance sheet from INR 20,000 crore currently to aboutINR 7,500 crore. The deleveraging efforts include the debt restructuring in the IPPs, which were affected by the cancellation of coal mines and unviable pricing of imported thermal coal. Essar Power is in discussions, which are now at an advanced stage, with its lenders to restructure all existing debts. This Company has put together a clear programme to address the challenges faced by the IPPs and is confident of overcoming them in the current year.

Power demand in India is increasing at a rate of 7% year-on-year and there are no new power generation capacities that are expected to be created in the near future. Essar Power, therefore, has an excellent opportunity to enter into new PPAs and utilise its entire generation capacity. The business is led by a strategy of stabilising existing operations, growing them and venturing into the renewables space.