At a time when many family-run businesses in India fight over control and ownership, three generations of the Ruia family continue to live under one roof and work together for the Essar Group, which its co-founder late Shashikant Ruia built from scratch with his younger brother Ravi Ruia.       

The man, who rejected to study abroad only to build an empire worth about $8 Bn across more than 30 countries, is no more. Essar Group co-founder and philanthropist Shashi Ruia recently passed away at the age of 81, leaving behind an extraordinary legacy of transformative leadership and strong family values.

The Essar Group now invests and develops assets in energy, infrastructure and logistics, metals and mining, technology, and retail sectors.  

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“With an unwavering commitment to community upliftment and philanthropy, he touched millions of lives leaving an enduring impact. His humility, warmth, and ability to connect with everyone he met, made him a truly exceptional leader. He played a significant role in redefining India’s corporate landscape and laid the foundation of Essar Group and made it a global conglomerate, the Ruia family said in a statement.

Ruia’s early days as an entrepreneur 

Under the guidance of his father Nand Kishore Ruia, a first-generation entrepreneur Shashi Ruia started his business journey in 1965. After three years, he founded the Essar Group, then a small trading company in Mumbai, with his younger brother Ravi Ruia. Shashi Ruia played a major role in planning strategies for the company’s growth, and diversification.

In 1969, the company bagged an order worth Rs 2.5 cr from the Madras Port Trust to construct an outer breakwater. The Essar Group later started working as a construction and engineering firm, delivering infrastructure projects, such as dams, bridges, and power plants.

Besides, he held various prominent positions in national and industry organisations, such as the Federation of Indian Chambers of Commerce and Industry, the Indo-US Joint Business Council, the Indian National Shipowners Association, the India-Japan Business Council, and the PM’s Indo-US CEO Forum.

Shashi Ruia’s legacy lies in quiet philanthropy 

While Shashi Ruia’s business achievements are always recognised and acknowledged everywhere, his quiet philanthropy is unknown to many. 

In the wake of the devastating 2004 Tsunami that destroyed Tamil Nadu’s coastline, Ruia met the affected families and provided them with essential things without seeking any recognition.

The Tamil Nadu Kidney Research Foundation received its first dialysis machine from Ruia. He continued to donate two machines every year. He had built houses for flood victims in Karnataka, established self-help groups for remote communities, and offered financial assistance, and mentorship. 

His involvement in the Essar Foundation formalised his philanthropic efforts in areas like education, health, and sports. He had helped in building infrastructure in Surat and Breach Candy Hospitals, organised health camps in remote areas, and set up mobile medical vans. He also supported rural education and promoted sports activities in rural areas. 

Highs and Lows of Essar Group 

The company diversified its portfolio, entering the energy sector, and acquiring several oil and gas assets by the 1980s. The Essar Group expanded its operations into the steel and telecommunication sectors in the 1990s. 

It became India’s second-largest telecom operator in partnership with Hutchinson, however, the Essar Group exited the telecom business. It was also forced to sell its oil refinery to a consortium led by Russia's Rosneft when insolvency proceedings were initiated to recover unpaid loans.

The National Company Law Tribunal initiated the insolvency proceedings against Essar Steel in 2017, triggered by an application filed by Standard Chartered Bank and the State Bank of India. 

The Essar Group sold its steel plants to ArcelorMittal-Nippon Steel joint venture that won the Essar Steel bankruptcy battle in 2019. It sold a power plant at Hazira in Gujarat, and a port at Paradip, Odisha to ArcelorMittal Nippon Steel Limited. It also sold its BPO business Aegis. 

Despite all hardships the Essar Group remained resilient, repaying debts of about Rs 2 lakh cr and pivoting to new opportunities like venturing into the steel business again with an investment of $8 Bn over the next three to four years. This includes setting up a steel plant in Saudi Arabia and an iron pellet plant each in Odisha and the US. 

The Essar Group's GreenLine Mobility Solutions Limited plans to add 1,000 Liquefied Natural Gas-powered trucks by March 2025.

Emphasis on strong family values  

Essar’s Ruia family members have many times attributed their success to strong family values, which they inherited from Shashi Ruia’s mother. 

At a time when India’s family-run big businesses have shown their ugly side in public, fighting over ownership and control, three generations of the Ruia family continue to live and run the show together. Former co-founder of Essar Group Shashi Ruia and his younger brother Ravi Ruia, their children and grandchildren still live and work together, setting a new example of keeping family values intact. 

They share the family homes in Mumbai, Delhi and London. Prashant Ruia, son of Shashi Ruia, is the director of Essar Capital. He has a sibling Anshuman Ruia and cousins Rewant and Smiti (children of Ravi Ruia). The family has stayed together for more than 50 years. 

Meanwhile, some of the most infamous family feuds in India include the battle between Mukesh and Anil Ambani over the control of the Reliance empire after their father’s demise. A few years ago, the Hinduja brothers fought over the control of the $18 Bn group.

In 2000, Rajan and Anil Nanda fought over the Escorts empire built by their father. Raymond saw a fallout between former chairman Vijaypat Singhania and his son in 2023. 

In the 1990s, Apollo Tyres chairman Onkar S Kanwar also had a spat with his father over the control of the company.