Ambition to Adversity: Shashi Ruia, Essar, & a cyclone's lasting impact

The passing of Shashi Ruia, who founded Essar Group along with younger brother Ravi Ruia in the late 1960s, brings back memories of Essar's shadow corporate battle with Reliance Industries in the 1990s.

- GOVINDRAJ ETHIRAJ

At the time, both were racing to build the first major private sector refinery projects in Jamnagar on the west coast of Gujarat.

Reliance's refinery was commissioned by early 2000.

Essar's project was delayed, among other reasons, by a cyclone in mid-1998. It finally started off in 2006.

While Reliance was going from textiles to petrochemicals to energy along with finance, Essar was going from shipping to oil exploration to steel, mining, power and also finance and banking.

Both companies were raising debt and equity from banks, financial institutions and the public and there was bound to be some friction, more likely when it came to debt since the lenders were only a handful.