Brothers still at Essar helm

There are no immediate plans to sell off part of the Essar group’s controlling stake in one of India’s biggest shipowning businesses.

Essar says that while divesting part of the group’s stake in Essar Shipping Ports & Logistics is an “option that is available to us” it is not part of the group’s current fund raising plans.

TradeWinds reported yesterday that Essar, controlled by billionaire brothers Shashi and Ravi Ruia, was not commenting on Indian media reports that part of the founders' shareholding in Essar Shipping could be divested to augment a London stock exchange listing to raise funds to further develop its extensive energy interests. Click on "Essar for sale?" to read this earlier article.

Shashi and Ravi Ruia

Roy says the strategy is that “Essar will continue to remain invested in the Essar Shipping Ports & Logistics business as the majority shareholder with complete management control.”

He claims yesterday’s TradeWinds article was "misleading" and "out of context" pointing out that Essar Shipping’s growth plans are on track.

The Economic Times, part of the Times of India group however reported “The Essar Group may list its energy holding company overseas and sell a part of the founders’ stake in the shipping subsidiary as it seeks to raise money to build new power plants, expand an existing refinery and buy ships.”

TradeWinds did not suggest Essar Shipping was off track but instead reported it had a substantial newbuilding programme that will add almost a million tonnes of extra capacity to its 25 vessel 1.4m dwt fleet.

Essar has six 105,000-dwt and six 64,000-dwt bulkers on order from STX Dalian and ABG in India for delivery by 2012 with the group keeping to its strategy of committing all tonnage to long term charters.

The Essar group has an 83.7% stake in Essar Shipping.

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