Chennai: Essar Global has announced a restructuring of its shipping logistics and terminal interests. The Indian operator has set up a Cyprus-based umbrella company, Essar Shipping and Logistics Ltd, under which there will be three operating companies.
Essar Shipping Ltd, 77% owned by ESSL, will own the group's 27-strong fleet of modern vessels including VLCCs, other tankers and bulk carriers. The company has long-standing relationships with oil majors like Chevron, Shell, ExxonMobil and BP, and with Saudi Aramco and major Indian oil companies like Indian Oil Co and Bharat Petroleum.
A fully-owned subsidiary Essar Logistics Ltd will carry out the group's logistics management, port services and transhipment operations involving handling, storage, and distribution of cargo by land sea and air. A third wholly-owned subsidiary Vadinar Oil Terminal Ltd will focus on ports and terminals. VOTL has set up a 32m tonne facility at Vadinar in Gujarat which will be operational by the end of September this year.
Vadinar is an all-weather deepwater port. The group says the restructuring will make ESLL a leading integrated logistics provider for steel mills, oil refineries and thermal power generation companies across the world. Essar Shipping managing director, Sanjay Mehta, will additionally assume the position of ceo of the new company, while chief operating officer A.R. Ramakrishnan will move up to ceo of Essar Shipping, and joins its board as an executive director.
Essar Shipping made net profits of $7.81m on revenues of $60.3m in the second quarter of this year - the first quarter of its new financial year. (21/08/06)
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