ESSAR HAZIRA FACILITY : FULLY INTEGRATED STEEL PLANT

ESSAR STEEL - HAZIRA FACILITY

The ESSAR GROUP is a multinational conglomerate and a leading global player in the sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, and Construction. With operations in more than 20 countries across five continents, the Group’s annual revenues were about USD 15 billion in FY08-09.

An Insite on Essar Group - Indian Multinational

Essar began as a construction company in 1969 and diversified into manufacturing, services and retail. Over the last decade, it has captured new markets and discovered new sources for raw materials through strategic global acquisitions and partnerships, or through Greenfield and Brownfield development projects. It is also building a strong presence in sectors like Mining & Minerals.

Today, the Group continues to expand its global footprint, focusing on the Asian, American, African and European markets. Essar invests significantly in forward and backward integration of its businesses, and on leveraging synergies between these businesses. It also focuses on in-house research and innovation and on embracing the latest technology to remain a low-cost manufacturer with high quality products and innovative customer offerings.

Despite its ambitious business pursuits, Essar has not shied away from its social responsibility. The Group runs community outreach initiatives in all its plant locations, with a focus on education, healthcare, environmental and agricultural development, and self-employment.

Steel
Essar Steel is a global steel company with strong presence in intensive steel consuming markets in Asia and North America. It is India's largest exporter of flat steel with 14 MTPA (million tons per annum) of capacity. Its goal is to reach a global production capacity of 20-25 MTPA. Essar Steel is fully integrated from mining to retail and has strong downstream capability with a global retail capacity of over 3 MTPA. The company has a worldwide network of steel hypermarts, service centres and customer care centres, and have investments in developing value-added products, like pipes and plates.

Global footprint
In 2007, Essar Steel acquired Algoma Steel in Canada, which has a current capacity of 4 MTPA, and Minnesota Steel, which has iron ore reserves of over 1.4 billion tons. The company is building a 6 MTPA pellet plant, a concentration plant and a direct reduced iron plant in Minnesota. In Indonesia, it operates a 400,000 TPA cold rolling complex with a galvanizing line of 150,000 TPA, making it the largest private steel company in that country.

Indian operations
Essar Steel is the largest steel producer in western India, with a capacity of 10 MTPA at Hazira, Gujarat. The Essar Steel complex at Hazira in Gujarat, India has a complete infrastructure setup, including a captive port, lime plant and oxygen plant. The company is building a 1.5 MTPA plate mill and a 0.6 MTPA pipe mill in Hazira to make further value additions to its product portfolio.

The Indian operations also include an 8 MTPA beneficiation plant at Bailadila, Chhattisgarh, an 8 MTPA pellet complex at Visakhapatnam, a 5.5 MTPA hot briquetted iron plant in Hazira and a 1.4 MTPA cold rolling complex. Additionally, Essar is setting up an 12 MTPA pellet plant in Paradip, Orissa.

Products and services
Essar Steel produces highly customized products catering to a variety of product segments and is India's largest exporter of flat products to the highly demanding US and European markets, and to the growing markets of South East Asia and the Middle East. It invests in world-class research & development, as well as technology collaborations with global steel majors, to develop enhanced value-added products and grades that find wide acceptance in sectors, like Automotive, White Goods, Construction, Engineering and Shipbuilding.

It has invested in downstream capabilities to evolve from being a product based company to becoming a value added service provider. It has a global network of retail steel outlets, called Steel Hypermarts, and offers services, like cutting, slitting and blanking of steel sheets, through specialized Steel Service Centers worldwide.

Energy
Essar Energy is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to oil retail. We have a portfolio of onshore and offshore oil & gas blocks worldwide, with about 70,000 sq km available for exploration. We also have over 310,000 bpd (barrels per day) of crude refining capacity that is being expanded to 750,000 bpd, with a goal to reach a global refining capacity of 1 million bpd. We also operate over 1,200 Essar branded oil retail outlets in various parts of India, and will open over 3,000 outlets countrywide.

Exploration and production
The Exploration and Production business of the company has participating interests in several hydrocarbon blocks for exploration and production of oil & gas. This includes the Ratna and R-Series fields and one shallow water offshore exploration block, both in proximity to the Mumbai High field in the Mumbai offshore basin. The business also has interests in an exploration block in Mehsana, Gujarat, which in currently under commercial production. It additionally owns a Coal Bed Methane (CBM) block at Durgapur in West Bengal, and two more exploration blocks in Assam, India. The overseas exploration assets include two onshore oil & gas blocks in Madagascar-Africa, one onshore block in Indonesia, two offshore blocks in Australia and one offshore block each in Vietnam and Nigeria.


Refining
Essar Oil's 14 MTPA (310,000 bpd or barrels per day) refinery at Vadinar in Gujarat started commercial production on May 1, 2008. It has been built with state-of-the-art technology and has the capability to produce petrol and diesel suitable for use in India as well as advanced international markets. It will also produce LPG, naphtha, light diesel oil, aviation turbine fuel (ATF) and kerosene. The refinery is being expanded to 16 MTPA (350,000 bpd) in the first phase and to 34 MTPA (750,000 bpd) in the second phase.

The Vadinar refinery has been designed to handle a diverse range of crude – from sweet to sour and light to heavy. It is supported by an end-to-end infrastructure setup including Single Buoy Mooring (one existing and another upcoming) and water intake facilities, crude oil tankage, a captive power plant (currently 125 MW, being expanded to 950 MW), product jetty (one existing and another upcoming) and dispatch facilities by both rail and road. The refinery is strategically located near a natural all-weather, deep-draft port that can accommodate very large crude carriers (VLCCs). Vadinar also receives almost 70 percent of India's crude imports. Post its expansion to 34 MTPA, the refinery will run at a Nelson Complexity of 12.8. This means it will be able to refine all varieties of crude, producing Euro 5 grade fuels. It will also be among the largest single location refineries in the world thus leveraging on economies of scale. The company has a goal to achieve a daily refining capacity of 1 million barrels per day through acquiring and redeveloping refineries in other parts of the world.

Essar also owns a 50 percent stake in an 88,000-bpd refinery operated by Kenya Petroleum Refineries Ltd in Mombasa, Kenya.

Bulk and retail marketing
Essar Oil supplies to bulk consumers and has already opened more than 1,200 retail outlets. The first private Indian company to enter petro retailing, it has product offtake and infrastructure sharing agreements with oil PSUs, namely Bharat Petroleum, Hindustan Petroleum and Indian Oil.

Power
Essar Power is today India's second largest power generation company in the private sector. Its current generation capacity of 1,200 MW is being expanded to 6,000 MW. With a portfolio of gas, coal and liquid fuel based power plants, Essar Power is among the lowest cost power producers. It has also entered the transmission and distribution sectors in India where it has quickly built a strong presence.

Existing and upcoming plants
Essar Power operates five power plants with a combined capacity of 1,200 MW in three locations across India. This includes two gas-based plants and one liquid fuel based plant in Hazira, a co-generation plant in Vadinar and a coal-based plant in Visakhapatnam. The company will set up three coal-based plants of 1,200 MW each in Gujarat, Madhya Pradesh and Jharkhand, aggregating 3,600 MW. An additional 950 MW (co-generation plant of equivalent capacity) is also under development in Vadinar to supply power and steam to the expanded refinery. The company is additionally setting up a wind energy plant at Bhuj, Gujarat, in collaboration with REpower Systems AG, one of the leading turbine producers in the German wind energy sector. It is building a 120 MW coal-based plant in Paradip Orissa to supply power to Essar's upcoming pellet plant in that location.

World-class operations
Our plants employ a high level of automation, which translates to India's lowest manpower to megawatt ratio. Essar Power has an immaculate track record of safety, and has won several safety awards. It is also committed to reducing emissions from its plants and earning carbon credits.

Communications
Essar Communications is a global player in the communications sector with presence in telecom services, telecom retail, telecom tower infrastructure and business process outsourcing. We have over 75 million telecom subscribers in India and Kenya, and is on the verge of entering the telecom services market in other South Asian and African countries. We operate an India-wide telecom tower infrastructure with more than 4,500 telecom towers. We also own India's largest telecom retail network of 1,300 outlets that is being expanded to 2,500 outlets. We offer Business Process Outsourcing services from over 30 offices in the Philippines, Costa Rica, South Africa, USA and India.

Vodafone-Essar
Vodafone-Essar is a joint venture of Essar Communication Holdings Ltd and the UK-based Vodafone Group. It is one of India's largest cellular service companies, with a subscriber base of over 75 million. Essar is also venturing into emerging markets in Africa and South Asia. In Kenya, Essar Communications has launched a new cellular services brand called “yu”, becoming the country’s fourth telecom operator.

Telecom retail
With the launch of The MobileStore in 2007, India's largest retail chain for end-to-end mobile and communication solutions, the Essar Group has firmly established its presence in the retail space. We currently have more than 1,300 telecom retail outlets in over 200 Indian cities and towns, catering to a wide and diverse customer base. The MobileStore has won several retail marketing awards for its innovative campaigns and customer promotions.

Telecom tower infrastructure
Essar Telecom Infrastructure is one of the largest independent telecom tower infrastructure service provisioning companies in the country. It builds telecom towers and shares them with several telecom operators in India. We have set up over 4,500 towers in India, and are on our way to build thousands more. Essar additionally holds a 14 percent stake in Indus Towers, the world's largest telecom tower company with over 100,000 towers.

BPO services
Aegis, a key business of Essar Communications, is one of the world's fastest growing business process outsourcing companies. Aegis offers value-added, interactive and back-office services to Fortune 1000 clients in Telecom, Banking, Insurance and Healthcare. Aegis operates through over 30 delivery centres in the Philippines, India, the United States and Costa Rica. Aegis has over 30,000 employees worldwide who speak more than 25 languages and over 200 dialects.

Shipping Ports & Logistics
Essar Shipping Ports & Logistics is a comprehensive sea logistics company with presence in sea transportation, ports & terminals, logistics and oilfields services. We own a shipping fleet of 25 vessels, and have placed orders for 12 new ships. We are one of India's largest operators of ports and are building a cargo handling capacity of over 150 MTPA. The business also offers contract drilling services to global oil majors, with a fleet of 13 onshore rigs and one super-specialty semi-submersible offshore rig.

Sea transportation
With an experience of over 220 ship years, the Sea Transportation business provides transportation management services for crude oil and petroleum products, and dry bulk cargo to the global energy, steel and power industries. It has a diversified fleet of 25 vessels, including Very Large Crude Carriers, product tankers and cape-sizes. It provides crude oil and petroleum products transportation, transportation management services and integrated dry bulk transportation services

Ports and terminals
The Ports & Terminals business is among India's largest owners and operators of ports and terminal facilities. The operations include an oil terminal in Vadinar and upcoming bulk terminals in Hazira and Salaya, all in the state of Gujarat. Vadinar, which is an all-weather, deep-draft port, serves major oil refineries and independent cargo traders in the region. The terminal has crude receiving capacity of 32 MTPA (being expanded to 50 MTPA) and sea-based product dispatch capacity of 14 MTPA. The port at Hazira has a capacity to handle 8 MTPA of bulk cargo. This will be enhanced to 30 MTPA through building a shipping channel that can berth larger vessels. The enhanced capacity will not only serve the expansion in the Hazira steel plant, but also cater to the needs of the upcoming Essar SEZ units. The business is also building a port, of about 20 MTPA capacity, at Salaya comprising a bulk and liquid terminal with container handling facilities.

Logistics
The Logistics business provides end-to-end logistics services from ships to ports, lighterage services, intra-plant logistics and dispatch of finished products. It owns trans-shipment assets to provide lighterage support services, and onshore & offshore logistics services. It also operates a fleet of 4,200 trucks to provide inland transportation of steel and petroleum products.


Oilfields Services
The Oilfields Services business offers onshore and offshore contract drilling, and offshore construction services. It has invested in drilling equipment and owns 13 onshore rigs, and an offshore semi-submersible rig, with two new jack-up rigs on order.

Projects
Essar Projects, the Group's foray in the Construction sector, is one of India's largest full-service Engineering, Procurement and Construction (EPC) providers. It has built most of Essar's and some of India's finest industrial assets. Today, Essar Projects offers strong capabilities in engineering, sourcing, construction, fabrication and project management to both the Essar Group and the outside world.
The Projects business continues to play a key role in each of the Group's new projects around the globe. Concurrently, it is expanding its third-party client base, especially in pipelines, marine construction, heavy engineering and project management consultancy, as well as beyond into full EPC for the oil & gas, power and heavy industry sectors.

Construction
The construction arm of the business has four decades of experience executing complex projects in the areas of industrial plants, civil and irrigation projects, pipe laying (offshore and onshore), highways and expressways, in addition to constructing almost all of the Essar Group's assets. This business also owns one of Asia's largest banks of construction equipment.

Marine construction
The marine construction business provides Engineering, Procurement, Construction & Installation (EPCI) services in domestic as well as overseas markets. In the high-growth oil & gas sector, the business provides EPC services for offshore logistics support and marine construction projects.

Heavy engineering
The Heavy Engineering Services vertical has world-class facilities for manufacturing a range of heavy equipment, like pressure vessels, reactors, vacuum vessels and cranes, with an overall capacity of 12,000 tons per annum. The facility is strategically located at Hazira (Gujarat, India) on the banks of river Tapi, and has its own jetty for sea transport.

Project management consultants
The Projects business has an independent team of Project Management Consultants bringing excellence to all the processes of project execution. While serving as consultants to Essar Projects' new and upcoming assignments for the Group, this team has also extended its reach to assignments for third-party projects.


Engineering & procurement support
Essar Projects is supported by a dedicated Engineering Centers specializing in Engineering and Design for the Process and Industrial sectors. It also has global procurement support in India, Middle East, China and the Czech Republic.