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| The Company |
| Essar Shipping Ltd. (ESL) is one of the world’s leading integrated sea logistics companies, with a special focus on transportation solutions for the global energy business. A strong management team of experienced marine professionals steers the company, maintaining customer focus, world-class operations, an impressive safety record and a consistent financial performance. Our fleet accounts for almost 14% of India’s shipping fleet and we own the country’s largest VLCC (Very Large Crude Carrier), which is also India’s first double hull, double bottom VLCC. |
| Rig to refinery - and beyond |
As an end-to-end
sea logistics provider, ESL serves customers across
the value chain- from ‘rig to refinery-and beyond’;
offering services in the areas of bulk transport,
supply chain management and storage and distribution.
We are global experts in the energy business, with
over 20 years of oil-handling experience. Our fleet
handles a daily average of eight million barrels
of crude oil, 320,000 barrels of petroleum products
and 355,000 tonnes of dry cargo.
ESL operates in three main business areas: First, our energy transportation group provides sea transportation management services to the global energy industry, including US, European and Indian oil companies. A key advantage is that we are one of the world's largest independent owners/operators of Suezmax tankers. In March 2004 we acquired India's first and largest double-hull double-bottom VLCC. We have long-standing relationships with all the major global oil companies and our tankers have been chartered to international oil majors like Shell, Exxon/Mobil, Chevron, Statoil, Ultramar Inc., BP Amoco and Texaco.
Second, ESL's integrated bulk/petroleum product transportation services group offers supply chain management services for the sea transportation of bulk cargo and refined products. This group services steel, power, cement, fertiliser and petroleum companies in South East Asia and India, for clients such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum. ESL also handles 5 million metric tonnes of coastal dry bulk cargo annually.
Third, to complete the integrated solutions chain, our crude oil and refined products handling and storage group provides storage and distribution services in India. ESL, through a wholly owned subsidiary Vadinar Oil Terminal Ltd., owns port and terminal facilities to handle the receipt, storage and dispatch of crude oil and petroleum products at Vadinar in Jamnagar, Gujarat, which is an all-weather, deep-draft port. |
| A complete sea-logistics provider |
| ESL is a truly
global company, deriving nearly three-quarters of
revenues from international business. Our fleet
of 30 vessels – made up of one VLCC, six Suezmaxes,
three product tankers, five dry cargo bulk carriers,
11 mini-bulk carriers and four tugs – is valued
at about US$ 415 m (Rs. 1.9 billion). The fleet
is modern, sophisticated, and fuel-efficient and
one of India's youngest, with an average age of
14 years against a world average of 19 years. The
Vadinar terminal extends the value chain of ESL's
sea logistics services by providing storage and
handling facilities for 32 MTPA of crude oil and
14 MTPA of petroleum products. |
| World -class standards |
Essar Shipping is one of the world's lowest-cost operators, with an exemplary safety record. We handle our technical management entirely in-house, maintaining our fleet to the highest quality, safety and operational standards. We were the first Indian shipping company to obtain the International Safety Management (ISM) code for our fleet of bulkers and tankers in July 1995, three years ahead of the International Maritime Organization's (IMO) deadline. We were also the first Indian shipping company to voluntarily comply with ISO 9002:1994 standards and have now upgraded to ISO 9001:2000 standards. Our vessels received the US Coast Guard's AMVER award for high maritime safety standards. We were the first Indian company to operate oil tankers in the highly competitive Atlantic region, especially to the US, which has stringent environment laws and heavy liabilities for failure. We are among the first shipping companies in the world to comply with the International Ship and Port Security (ISPS) code. |
| Customer-led, flexible and profitable |
The needs of our customers drive our business and our core competencies are closely aligned to their requirements. We carefully study the geographical and product mix of our clients to provide the best solutions, optimising their businesses and saving them time and money. Our customers know they can count on us for scheduling flexibility, reliability, availability and management accessibility. We also support clients with a comprehensive shipbroker network and a sophisticated e-backbone, which allows them to track their cargo status on a real-time basis.
Our lean organisation and management give us the flexibility to respond quickly to customer needs and to market conditions. Our astute mix of long-term and spot contracts gives us a vessel utilisation rate of around 95%. Since trading assets wisely is crucial in the shipping business, ESL has invested consistently during recessions to be able to profitably encash assets during revivals. ESL is publicly listed and has remained financially strong even during periods of industry volatility, with consistently strong revenues and profits. |
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