Shashikant Ruia, the patriarch of the Ruia family and co-founder of the Essar Group, has passed away at the age of 81, family members said on Tuesday.
“It is with profound grief that we inform of the passing of Shri Shashikant Ruia, patriarch of the Ruia and Essar Family. He was 81. 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,” the Ruia family and Essar Group said in a statement.
Prime Minister Narendra Modi too expressed condolences and remembered Ruia as a “colossal figure in the world of industry”.
“Shri Shashikant Ruia Ji was a colossal figure in the world of industry. His visionary leadership and unwavering commitment to excellence transformed the business landscape of India. He also set high benchmarks for innovation and growth. He was always full of ideas, always discussing how we can make our country better. Shashi Ji’s demise is deeply saddening. My deepest condolences to his family and loved ones in this hour of grief. Om Shanti,” PM Modi said.
Born in Rajasthan in 1943 into a family with a strong entrepreneurial tradition, Shashi Ruia pursued his education in mechanical engineering from the College of Engineering, Guindy in Chennai.
A visionary businessman who transformed a small trading enterprise into a global conglomerate, Ruia was instrumental in building Essar Group into a diversified powerhouse, spanning energy, steel, ports, telecommunications, and infrastructure sectors. Together with his brother Ravi, he started his entrepreneurial journey in 1969 with the construction of an outer breakwater at Chennai Port.
Recognising India’s economic potential, Ruia was quick to seize opportunities during economic liberalisation in the early nineties, building businesses that spanned entire value chains — from ore to steel, crude to oil retail. His visionary approach focused on creating comprehensive ecosystems and end-to-end solutions that transformed individual industrial segments into interconnected business landscapes.
Among Ruia’s most significant contributions was to the steel industry. In 1996, Ruia established an integrated steel complex at Hazira, Gujarat, with a production capacity of 10 million tonnes per annum (MTPA). The project covered iron ore fines to finished steel production, developing specialized steel grades for defense and industrial sectors.
In the refining sector, Ruia identified Jamnagar, Gujarat as a strategic location, setting up a 20 MTPA refinery. This project expanded Essar’s presence across exploration, production, and petroleum product retailing.
Essar went on to become the largest coal bed methane (CBM) operator in India. In the power sector, the company invested $4.2 billion to develop over 5,000 MW of generation capacity across multiple locations, including significant transmission infrastructure.
In telecommunications, Essar was among the early entrants in mobile services during the 1990s. The company manufactured mobile handsets and partnered with global telecommunications players like Hutchinson, reaching a subscriber base of 28 million before exiting the business.
Forbes named the Ruia brothers as the world’s richest Indians in 2012 with a net worth of USD 7 billion.
Under mounting financial pressure, the Essar Group underwent a significant asset divestment process. The group’s prized oil refinery in Vadinar was sold to a consortium led by Russia’s Rosneft in a transaction valued around $13 billion.
A few years later, the group’s steel plant at Hazira was transferred to a consortium led by ArcelorMittal following insolvency proceedings to recover substantial unpaid loans. This sale was part of the broader resolution of the group’s financial challenges under the Insolvency and Bankruptcy Code.
Ruia held significant leadership positions across prominent national and international business bodies. He was a member of the Prime Minister’s Indo-US CEO’s Forum and India-Japan Business Council. He was a former president of the Indian National Shipowners Association (INSA) and Chairman of the Indo-US Joint Business Council. Additionally, he served on the managing committee of the Federation of Indian Chambers of Commerce and Industry (FICCI), a key trade and business association.
In his later years, Shashi Ruia focused on transforming Essar’s portfolio from carbon-intensive industries to clean energy solutions. He invested in green technologies including hydrogen, LNG, and renewable energy sources, creating infrastructure for future generations.