Corporate house Essar on Friday announced a major business restructuring of its shipping, terminalling and logistics businesses, under which it has set up a wholly-owned subsidiary in Cyprus.
"In order to provide a sharper focus to its business and increase shareholder value, the company has formed a fully owned subsidiary, Essar Shipping and Logistics Ltd (ESLL), registered in Cyprus," Essar Global Ltd said in a statement.
As per the re-organisation plan, ESLL would have three operating companies under its umbrella - Essar Shipping Ltd, Essar Logistics Ltd and Vadinar Oil Terminal Ltd. ESLL would hold 77 per cent in Essar Shipping Ltd and 100 per cent stake in the other two companies.
The re-organisation would make ESLL a leading integrated logistics provider for steel mills, oil refineries and thermal power generation companies across the world, it said.
Essar Logistics Ltd would carry out the business of logistics management, trans-shipment and port services, while Vadinar Oil Terminal Ltd (VOTL) would focus on ports and terminals.
VOTL has set up a 32 million tonne terminal facility in Vadinar, Gujarat, which would be ready by September this year.
Sanjay Mehta would be the CEO of ESLL and would also continue as Managing Director OF Essar Shipping Ltd. A R Ramakrishnan has been inducted into the board of ESL as an Executive Director and would be designated CEO, it said.
Essar Global Ltd, the parent company of Essar Steel, Essar Power and Essar Oil, has interests in the infrastructure sector, telecommunication and technology and industrial construction and engineering, with an asset base in excess of six billion dollars.