SARVAJANIK UNIVERSITY
SARVAJANIK COLLEGE OF ENGINEERING
& TECHNOLOGY
NAME : Patel Pranami Manishbhaibhai
SUBJECT : Principles of Economics & Management
ENROLLMENT NO : ET21BTAI57
BRANCH : Artificial Intelligence & Data Science
DIV : B
, ESSAR STEEL INDIA Ltd
➢ Introduction
In 1969, Shashi Ruia won a major contract worth Rs. 2.3
crore for construction of outer breakwater for Chennai port, thus
laying the foundation of Essar Group. In 1976, Essar purchased
India's first private tanker for US$2 million. In 1995, Essar Group
entered the telecom sector with a Swiss PTT joint venture partnership
branded as the Essar Cellphone. In the same year, Essar Group
started GSM operations from Delhi. In 2007, Essar owned The
MobileStore, an Indian chain of telecom and mobile phone retail
stores. In 2017, Essar Steel India Ltd. (ESIL) was on the defaulters'
list disclosed by the Reserve Bank of India. In November 2019,
ArcelorMittal won approval from Supreme Court to takeover Essar
Steel and pay the creditors with equal rights. In December 2021,
Essar has set up Vertex Hydrogen under UK's HyNet project with
Progressive Energy to help drive energy transition in the UK. There
Were steel plants are mention below.
List of Steel Plants
• ESSAR Steel India Limited, a fully integrated steel mill in Hazira,
of the Surat district in Gujarat, India, with a steel-making capacity
of 10 MTPA.
• Essar Steel Minnesota LLC, a company located in U.S. state
of Minnesota, was declared bankrupt and its assets and mining
rights sold in June 2017.
• Greenfield projects in Vietnam.
• Steel plant in Indonesia.
• Integrated steel plant in Trinidad and Tobago. It has a current
capacity of 10 MTPA which they plan to raise to 20 MTPA by
2028.
➢ Services
Essar group, being such a massive conglomerate focuses
on people management. Currently Mr Ravi Ruia & Shashi Ruia is the
chairman of the company. Essar Oil has refineries and extraction
ports in different locations. In order to make the employee experience
better with growing needs and to enhance their productivity the
company has to provide benefits and perks to the stakeholders. In lieu
of the same, Essar’s primary focus is customer satisfaction,by
providing best in house facilities, social services and use of modern
techniques to enhance the expertise and experience of people.
The process followed by Essar is very simple and of the
belief that maximum profits should to recover by the company along
with maintain the image in the industry in which it is operating. For this
purpose Essar has always invested highly in the latest technology to
ease the work of its employees and to increase employee satisfaction.
Essar’s biggest physical evidence are its petrol pumps, oil
tankers, consumer end products, retail stores etc. In order to make its
presence feel amongst the community and employees, the company
provides printed material to its employees as a token of appreciation
and benefits they are getting as an employee of this organisation.
Hence, this concludes the Essar marketing mix.
➢ Marketing Strategy
Essar Price/Pricing Strategy:
Essar Group is one of the largest companies in India, with a
strong revenue and profit across its subsidiaries. The recent takeover
of Essar Oil by Rosneft might improve its financial condition more and
increase its profits. The prices of the consumer products in India are
set by the government and the companies have to abide by them.
There is hardly any difference in the price margins between various
competing organisation because of this standard regulation by
government of India. For the retail brands, the prices are kept
competitive to fight against existing competitor retailers and
ecommerce platforms.
Essar Place & Distribution Strategy:
Essar Group has a wide geographic presence. The MobileStore
retail shops are located at more than 1000 places across India. Essar
Oil has its own petrol stations throughout the country at various
locations. Apart from that, the various production units are located in
Mehsana Oil Block, Cambay; Raniganj, West Bengal and Offshore
Mumbai. Various exploration sites are located in Jharkhand, Orissa,
Madhya Pradesh, and Assam. The Essar Oil Refinery is in Vadinar,
Gujrat. Essar Steel has presence in India, US, Canada. The Essar
Hypermart has more than 500+ stores across geographies.
Essar Promotion & Advertising Strategy:
Essar group has a strong workforce and it provides the best high
quality services. Essar is highly dedicated towards maintain a high
customer base by participating actively in promotions through social
media both digital and through means of advertisements in
newspapers, magazines, hoardings, etc. This active participation of
the Essar group helps them in promoting the brand in a positive
manner and portrays their continuous dedication and efforts towards
maintain the best image before the customers. Essar group also
believes in giving back to the society through its CSR activities and
environment friendly operations. Safety and environment are its top
most priorities and the company meets all the standards in achieving
those.
➢ Product
Essar Steel Products
• Essar Steel Pipe.
• Essar Steel Hot Rolled.
• Essar Steel Cold Rolled.
• Essar Steel Galvanised.
• Essar Steel Colour Coated Sheets.
• Essar Steel Plate.
• Essar Steel Shot Blasted And Primed Plates.
• Essar Steel Factory Welded Beams
➢ Management
The company has 4 directors and no reported key
management personnel. The longest serving directors currently on
board are Shajumon Ottapurackal Mohammedbasheer and Rajesh
Raveendran Madasseril who were appointed on 10 August, 2011. They
have been on the board for more than 11 years. The most recently
appointed directors are Deepa Priyadarsan and Thasni Shaju, who
were appointed on 22 February, 2019. Shajumon Ottapurackal
Mohammedbasheer has the largest number of other directorships with
a seat at a total of 1 companies. In total, the company is connected to
0 other companies through its directors.
➢ Conclusion
In all its market sectors, Essar enjoys global leadership in its
steel business. With Jio being its fastest-growing business, it has all
the proper marketing campaigns and strategies in place. However,
Incase of Steel/Oil Retail, it is yet to work out its marketing campaigns
and strategies to ensure it operates on its maximum potential and
thrives in offering customers a better experience with its products and
services.
There is almost no difference between fuel in Essar and
other PSU pumps. In fact all these companies have a a product
sharing agreement between themselves, which means an Essar
pump in North will actually be drawing its products from a say IOC or
HPCL depot. Similar, an IOC pump in Gujarat may find it cheaper to
procure from an Essar Depot rather than shipping it from outside the
state. Having said that, what makes the difference is adulteration, or
rather the lack of it. In a private sector pump, the owner is always
held in very tight leash on product quality and quantity. Each
customer complaint is taken very seriously and hence generally, you
can be assured on fuel quality and quantity. Atleast the pump owner
won't be mixing your petrol with kero or diesel with naptha. Essar is
leading in the petroleum and oil sector because of its product quality
and efficiency. Essar has a production for animals and birds. It’s
growth is very high in Agro.
Essar has grown in leaps and bounds over the years and a
lot of credit goes to their hard work, innovation, and marketing
strategies. Their use of digital marketing has expanded their
customer base and increased their profits.
Digital Marketing has opened up many career opportunities
which will only grow in the years to come. If you are interested in
learning about a career in digital marketing and the scope of digital
marketing.
