essar groupcreatingvalue.essar.com/essar_media.pdf · 2 • essar group is committed to conceive,...
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• Essar Group is committed to conceive, nurture and build world-class assets
• At Vadinar, we started the refinery project 22 years back that has now
received the world’s attention and attracted premium valuation
• This world-class asset has brought in foreign investment of $12.9 billion
THE CRUDE AGREEMENT
Essar Oil signs 10-year crude
supply agreement with Rosneft
PRELIMINARY AGREEMENT
Essar signs preliminary agreement
with Rosneft to sell 49% stake in
Essar Oil’s Vadinar refinery
THE ANNOUNCEMENT
Rosneft-UCP-Trafigura
consortium sign agreement with
Essar for 98% in Essar Oil and
announce the same at the
sidelines of the BRIC summit
in Goa
DEAL CONCLUDES
Essar concludes the deal with
Rosneft-UCP-Trafigura
consortium
$12.9 billiondeal
Largest
acquisition in
Indian oil sector
More shareholder
value
Creates ground for
further growth
Essar Oil
Vadinar Refinery
20 MTPA
Vadinar Oil
Terminal
58 MTPA
Captive Vadinar
Power Plant
1,010 MTPA
Network of over
3,600
retail outlets
• The deal brings in the largest
acquisition to the Indian
Oil Sector
• This takes the total foreign
investment brought into
India by Essar to ~
$30 Billion(including Essar Oil,
Vodafone, Aegis)
• Marks the
single largest
deleveraging
instance in
Indian corporate
history
• Deal concluded
in record time,
given the size
and complexity
of the transaction
• Essar emerges as
the first corporate
in India to
compensate
ex-shareholders
post delisting with
the difference in
realized value of
asset
• The deal substantiates Essar’s
commitment to creating value
• Deleverages group debt
• The deal will help Essar Oil
grow further as Rosneft plans
to remain invested in the
company for the long haul
• Gain access to the growing
Indian markets through
world class assets and a
massive retail network.
India
• Step towards deeper
strategic ties with Russia
• Huge inflow of investments
to the economy
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• Essar was a first mover in the telecom
sector buying its first license in 1995
• Focus was on a rapid growth strategy
which led to a partnerships with
Hutchison Whampoa and then with
Vodafone
• Strong growth in subscribers from
11mn in FY05 to 127mn in FY11
• Investment sold to Vodafone in 2011
• Growth of business process
outsourcing division to over 50,000
seats in 13 countries
• Focus on end-to-end customized
solutions across industries
• Part sale of asset with divestment of
Aegis USA Inc., operating in United
States, Costa Rica and Philippines for
$610mn to Teleperformance
• Sale of balance operations, including
India, to CSP for $300 million under
process
• Essar monetized 98% stake in Essar
Oil to Rosneft, the worlds largest
publicly traded oil company and an
investment consortium led by
Trafigura, world’s leading commodity
trading and logistics house.
• Transaction valued at $ 12.9 Bn
includes Essar Oil’s 20 mtpa refinery
and retail assets. Along with Vadinar
port and related infrastructure.
PROVEN SUCCESS OF VALUE CREATION
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• Post transaction group asset base stands at $17 billion(Fully operational facilities in steel, power, ports, shipping, refining and gas)
• Group revenues estimated to be $15 billion*
• Group debt to reduce substantially
• Essar remains invested in Oil & Gas through 9 MTPA Refinery in Stanlow
and E&P Business (Essar is the largest CBM player with 1 tcf of recoverable reserves)
• Essar is poised for growth with assets ready to cater to growing demand and a positive
economic outlook in the steel, power, port and shipping sectors. The focus will be on
sweating the assets created
Gross Revenues: FY’18 Estimates
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INDIA
INTEGRATED ASSETS ACROSS LOCATIONS
Iron Ore Iron Ore
Deposits
Mahan
Beneficiation Plant
Slurry Pipeline
Pellet Plant
2
2
Bahadurgarh
Bhuj
Indore
Kolkata
Chennai
Kirandul
Vizag
Paradip
Hazira
Port
Power
Shipping
1
1
2
3 5
Hazira Steel Facility3
Pune Downstream Facility
Service Center
4
5
5
5
4 5
5
5
5
Pune
Dabuna
1
Steel
Oil & Gas
Salaya
Tori
1 Coal Bed Methane
1
Raniganj
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UNITED KINGDOM
A
A Stanlow Refinery
Essar Steel, Hazira
12
A
A Coal Mine
UNITED STATES
CANADA
Algoma Power
Port of Algoma
A
Cold rolling plantA
INDONESIAMAURITIUS
Oil & Gas
• ~196 bpd / 9 MTPA operating
refining capacity
• Stanlow Refinery in UK meets
16% of country’s road fuel demand
• 36 Essar Branded retail fuel outlets
• 7.5 TCF coal bed methane
resources
Power
• 3,830 MW commissioned capacity
increasing to 5,090 MW pan India
& Canada
• Operating and in development of
coal mines
Resources
• Iron ore resources in India
• Metallurgical coal resources in
USA
• Thermal coal resources in
Indonesia
• 20 MTPA pellet capacity in
Eastern India
Steelmaking & Marketing
• 10 MTPA steelmaking capacity
• #4 largest single site globally
• 4 MTPA distribution capacity
• 300+ retail outlets across India
• 200,000 tonnes of cold rolling
operations in Indonesia
Ports
• India’s 2nd largest private port
company.
• Operational port assets in strategic
locations in India and Canada.
• Current capacity of 92 MMTPA to
be scaled up to ~190MMTPA.
Projects
• $2 bn+ order book
• 40 year track record and global
operations
• One of the largest equipment
banks in India
Shipping
• 14 ships including VLCCs,
capsize and supramax; 4 ships
on order
• Aggregate shipping capacity of
1.6mn (dwt)
• Oilfield Services: 15 land rigs, 1
semi submersible offshore rig
BPO
• 37,500+ employees
• 300+ global clients
• 37 locations in 9 countries
x
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• Transaction marks the end of our monetization programme and is the single largest
deleveraging instance in Indian corporate history. Group debt will stand substantially reduced by
Rs 70,000 crore (US$11 bn).
• The completion of this transaction demonstrates the Group’s intent to honour its commitments to
all stakeholders
• EGFL’s portfolio companies will have consolidated revenues of US$15 billion, with operations
across the globe
• Essar Energy remains invested in the oil & gas sector, through the refining and marketing
operations in Stanlow, and through E&P, where we are the largest CBM player with 1 tcf of
recoverable reserves (in place)
• Essar Global now looks forward to focus its attention on its wider portfolio of businesses, such
as steel, power, oil & gas, ports and shipping, with a positive economic outlook in each of these
sectors.
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welcomes