GROUP MEMBERS

SR. NO 1

NAME

ROLL NO. 123

HINESH GOGRI

POONAM DUMBRE

144

HARSHADA SAWANT

BHOOMIT JAIN

160

Index

Sr. No.
1 2 3 4 5 6 7 8 9 10 11 12

Particulars
Acknowledgement Declaration Essar group History of Essar group Corporate profile Businesses Essar in oil and Gas Export of oil and petroleum product Import of oil & petroleum product Questionnaire Conclusion Bibliography

Acknowledgement

We take this opportunity to express our sincere gratitude towards all those who directly and indirectly assisted us in History of are thankful to creating this project .WeEssar Group Ltd Mrs. Sindhu mam who provide an opportunity to write this project. Her The Ruia familys originstechnical assistance supportive nature and are in Rajasthan. Sometime in the 19th century, they moved every step. made us comfortable atto Mumbai and set up their own business.

In 1956, Mr Nandkishore Ruia, father of Mr Shashi Ruia and Mr Ravi express our sincere thanks to of the south Indian state We Ruia, moved to Chennai, capital of Tamil Nadu, to begin independent business activities. He every member of Essar group especially Mr.mentored his two sons in the intricacies of business. When Mr Jagdish Narwekar for providing us technical Knowledgepassed away intheir the brothers laid the Nandkishore Ruia and lending 1969, valuable time to the Group. foundation of us.

Last but not the its operations with the The Essar Group beganleast, we are thankfulconstruction of an to all those who directly and indirectly outer breakwater in Chennai port. It quickly moved to capitalize helpedevery emerging business opportunity, becoming Indias first on us in completion of this work. private company to buy a tanker in 1976. The Group also invested in a diverse shipping fleet and oilrigs, when the Government of India opened up the shipping and drilling businesses to private players in the 1980s. Then, in the 1990s, Essar began its steelmaking business by setting up Indias first sponge iron plant in Hazira, a coastal town in the western Indian state of Gujarat. The Group went on to build a pellet plant in Visakhapatnam, and eventually a fully integrated steel plant in Hazira.
Through the 1990s, with the gradual liberalization of the Indian economy, Essar seized every opportunity that came its way. It diversified its shipping fleet, started oil & gas exploration and production, Public foundation of its oil refinery at Vadinar, laid the Type Gujarat, and(BSE: 500630) plant near the steel complex in set up a power (BSE: 500134) Hazira. The construction business helped the Group build most Industry Conglomerate Founded 1969 Shri.Shashi Ruia Founder(s) Shri.Ravi Ruia

of its business assets. Essar also entered the GSM telephony business, establishing Indias first mobile phone service in Delhi (branded Essar Cellphone) with Swiss PTT as the joint venture partner. The 21st century for the Essar Group has been all about consolidating and growing the businesses, with mergers and acquisitions, new revenue streams and strategic geographical expansion. Essar Group Ltd. is one of India's leading privately owned, diversified conglomerates, with a total asset base of more than $5 billion and annual revenues of INR 100 billion ($2.2 billion). Whereas Essar Group itself is controlled by the founding Ruia family, much of the company's diversified holdings fall under its publicly listed subsidiaries. The company's subsidiaries include Essar Steel, the second largest private sector steel company in India; Essar Oil, a fully integrated oil and gas producer, and the first private sector Indian company to enter the market since its liberalization in the early 1990s; Essar Power, which operates a 515 megawatt (MW) natural gas power plant in Hazira, with plans to increase its total output to 2,500 MW by the end of the 2000s; Essar Shipping, the group's original activity, the leading shipping group in India, with 30 vessels, including India's first Very Large Crude Carrier (VLCC) tanker, representing some 14 percent of the country's total fleet; Essar Teleholding, which, through its joint venture Hutchison Essar is the second largest cellular telephone provider in India; and Essar Construction, a leading construction company in India. Other Essar holdings include subsidiaries involved in magazine publishing, business process outsourcing, information technology, and flower and vegetable production. Essar Group is led by Shashi and Ravi Ruia, sons of the company's founder.

Chronology
Key Dates

1956 Nand Kishore Ruia moves to Chennai and establishes the Essar Group as a trading company. 1966 The company enters the stevedoring market for the region's iron ore mining industry. 1969 After Ruia's death, his sons Shashi and Ravi become heads of the company and launch a long diversification drive, starting with an entry into the construction market, through Essar Construction, and the shipping industry, through Essar Bulk Cargo Carriers.

1975 The company establishes Essar Gujarat (later Essar Steel) to produce sponge iron ore. 1976 The company establishes Essar Investment as a holding for the Ruia family's diversified investments. 1983 The company acquires Karnataka Shipping Corporation. 1984 Essar Bulk Cargo Carriers is renamed as Essar Shipping Limited (ESL) in 1984. 1989 The company establishes Essar Oil & Exploration with plans to develop integrated oil services. 1992 The South India Shipping Corporation is acquired. 1993 The company wins exploration bids for fields in Rajasthan and offshore Bombay; construction of a 510 megawatt (MW) power plant is launched in Hazira. 1995 The company enters the mobile telecommunications market. 1996 The company creates an alliance with Sterling Cellular Limited and rolls out the Essar Cellphone brand.

1999 Essar Group is forced to default on loan payments. 2001 Essar Oil begins developing its own service station network; Essar Steel forms a partnership to build a cold-rolled steel plant in Indonesia. 2002 The company merges cellphone operations into the Hutchison Essar joint venture. 2005 Hutchison Essar acquires BPL's cellular phone operations in India. 2006 Essar buys a new Very Large Crude Carrier (VLCC) tanker

The Essar spirit

The Essar Group has been foraying into new international markets, and exploring new business areas in a bid to keep its entrepreneurial spirit alive, and to keep growing

Our vision We will be a respected global entrepreneur, through the power of positive action. Our mission We are committed to innovative growth, through our personal passion, reinforced by a professional mindset, creating value for all those we touch. Our spirit The Essar Group has changed significantly in recent years and continues to evolve, to keep pace with the changing times. We have undertaken a sustainable journey of transformation by foraying into new international markets, and exploring new business areas in a bid to keep our entrepreneurial spirit alive, and to continue growing. To mark the phenomenal growth witnessed over the last four decades, the Group recently unveiled its new brand identity marking a very important milestone in its journey and reflecting a new beginning for the Group. A new brand identity reinforces all the positives to fulfill our vision to be a global entrepreneur through the

power of positive action. We aim to have a robust value system comprising positive attitude, positive action and positive achievement. We endeavour to create enduring value for customers and stakeholders in core manufacturing and service businesses, through world-class operating standards, state-of-the-art technology and the positive attitude of our people.

Corporate profile Moving beyond Indian frontiers, the Essar Group continues to grow internationally through focused strategies The Essar Group is a multinational conglomerate and a leading player in the sectors of steel, oil and gas, power, communications and business process outsourcing (BPO), shipping, ports and logistics, projects, and minerals. With operations in more than 20 countries across five continents, the group employs 70,000 people, with revenues of USD 15 billion. With manufacturing facilities in India, Indonesia, Canada and North America, Essar Steel is a global steel producer with a capacity of 14 million tonnes. The company is fully integrated, from iron ore mining to steel retail. It operates specialized plants to manufacture value-added products like plates and pipes. It is also a leader in cold rolled, galvanized and pre-coated steel products. Essar Steel operates a global steel retailing and processing network that spans India, Indonesia, UAE and the UK. Essar Oil is an end-to-end player in the oil and gas sector \ from exploration to refining to retail. It owns a portfolio of 17 onshore and offshore oil and gas blocks in Asia, Africa and Australia. The company is a leader in the exploration of coal bed methane gas. Essar Oil has a 300,000 barrels per stream day (bpsd) refinery at Vadinar in Gujarat, India. This refinery is being expanded to 405,000 bpsd, with the complexity being enhanced by almost double. The company has a 50 percent stake in an 80,000-bpsd refinery in Kenya. Essar Oil is also among the leading oil retailers in India with over 1,370 outlets, which is being expanded to 1,700 outlets.

Essar Power is among Indiafs top private sector power producers with a current generation capacity of 1,600 MW spread across five power plants in India and Canada. This capacity is being expanded to 6,100 MW by 2012, and to 11,470 MW by 2014, through the addition of seven new power plants in various parts of India. The combined assets of Essar Power and Essar Oil constitute Essar Energy plc, a company that was listed on the London Stock Exchange in 2010 following a highly successful Initial Public Offer (IPO), the second largest overseas IPO ever floated by a company of Indian origin. Essar Energy is part of the FTSE 100, UK's top 100 companies by market capitalization.

Essar Communications is a global player in the communications sector with a presence in telecom services (over 120 million subscribers in India, Kenya, Uganda and Congo), as well as consumer durables and IT retail (over 1,200 outlets). In India, Essar Communications has a 33 percent stake in Vodafone Essar, one of the countryfs largest telecom players. Aegis is Essar's BPO arm. It serves Fortune 500 companies across 10 countries through 47 delivery centers. It has launched many innovative initiatives in the services sector, the latest being the Institute of Customer Experience Management, which grooms managers for the services industry. Essar Shipping Ports & Logistics is an integrated logistics solution provider with a presence in shipping (25 vessels servicing steel and oil and gas majors), ports and terminals (cargo-handling capacity of 76 million tonnes that will expand to 158 million tonnes), and oilfield drilling services (fleet of 13 rigs serving oil and gas exploration companies), as well as logistics. The company is among India's largest port operators and is adding 12 new ships as well as two new jack-up rigs to its already diversified fleet Essar Projects has world-class engineering, procurement and construction (EPC) capabilities that have helped build all of Essar's industrial assets in India in the sectors of steel, oil and gas, power, and ports and terminals. The company, which is among India's top three EPC contractors, is increasingly using its expertise to execute large external projects across the world. Essar Minerals owns a growing portfolio of iron ore and coal mines in India, Indonesia, Mozambique and the USA. It also has an iron ore prospecting license

in Brazil and various states in India. The company has access to over 1.6 billion tonnes of iron ore reserves and 450 million tonnes of coal reserves.

Board of directors
Listed here are the promoter directors of the Essar Group. Each company under the Group is independently run by a team of professionals

Promoter Directors

Mr Shashi Ruia Chairman Essar Group

Mr Ravi Ruia Vice Chairman Essar Group

Mr Prashant Ruia Group Chief Executive Essar Group

Mr Anshuman Ruia Promoter Director Essar Group

Ms Smiti Kanodia Promoter Director Essar Group

Mr Rewant Ruia Promoter Director Essar Group

Management team Mr J Mehra Director, Essar Group Mr Malay Mukherjee CEO, Steel Business Group Mr Naresh Nayyar CEO, Energy Business Group Mr Rajiv Agarwal MD & CEO, Essar Shipping Ports & Logistics Ltd. Mr Rajiv Sawhney CEO, Telecom Business Group Mr Aparup Sengupta CEO, Aegis Ltd. Mr Alwyn Bowden CEO, Projects Business Group Mr Pradeep Mittal CEO, Minerals & Mining Business Mr Vikash Saraf Director, Strategy & Planning, Essar Group Mr V Ashok CFO, Essar Group Mr Adil Malia Group President, Human Resources Mr SM Lodha Group President, Assurance and Cost Control Mr Sunil Bajaj Head, Corporate Relations Group

Businesses
Essar Global Limited is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of :

Steel : Essar Steel is a global producer of steel with a footprint in India, Canada, USA, the Middle East and Asia. Energy: Essar Energy is a world-class, low-cost, Indian focused energy company with an established track-record and US$8 billion of assets. Oil and Gas: Essar Oil operates a fully integrated oil company of international size and scale Power: Essar Power, Indias second largest power generation company in the private sector, has a total installed generation capacity of 1,600 MW. Communications: Essar Telecom Infrastructure is one of the largest independent telecom infrastructure service provisioning companies in the country. Shipping ports and logistics and : Essar is an integrated logistics solution provider with investments in ports and terminals, logistics services, sea

transportation and oilfield drilling services

Construction : Essar Projects Limited drives our businesses in the construction sector. We own one of Asias largest banks of sophisticated construction equipment We believe in seizing opportunities to expand our reach.

Essar in oil & gas

Essar Oil operates a fully integrated oil company of international size and scale

Essar Oil's assets include developmental rights in proven exploration blocks, a 14 MTPA refinery on the west coast of India and over 1,376 Essar-branded oil retail outlets across India. Plans are under way to increase its exploration acreage in various parts of the globe, expand its refinery capacity to 18 MTPA, and open 1,700 outlets countrywide by March 2011. Our global portfolio of onshore and offshore oil and gas blocks, with about 45,000 sq km is available for exploration. We have over 300,000 bpsd (barrels per stream day) of global crude-refining capacity that is being expanded to 375,000 bpsd, with the refining capacity being enhanced by almost double. We have a controlling stake of 50 percent stake in Kenya Petroleum Refineries Ltds 80,000-bpsd refinery; the remaining 50 percent is owned by the Kenyan government. Global exploration portfolio

We are aggressively growing our presence in the Exploration and Production business. We have 2C contingent resources of 148 mmboe (million barrels of oil equivalent), and best estimate prospective resources of 1,012 mmboe. Largest CBM player in India We have an acreage of over 2,700 sq. km in India, which gives us the largest CBM acreage in the country. Our CBM block in Raniganj is close to commercial production and has signed customer contracts with several companies. Large refining capacity We have a 14 MTPA refinery at Vadinar in Gujarat, which started commercial production on May 1, 2008. It has been built with stateof-the-art technology and has the capability to produce petrol and diesel suitable for use in India as well as advanced international markets. It will also produce LPG, Naphtha, light diesel oil, Aviation Turbine Fuel (ATF) and kerosene. The refinery has been designed to handle a diverse range of crude from sweet to sour and light to heavy. It is supported by an end-to-end infrastructure setup including SBM (Single Buoy Mooring), crude oil tankage, water intake facilities, a captive power plant (currently 500 MW, being expanded to 1,200 MW), product jetty and dispatch facilities by both rail and road. We have made huge investments in installing the most advanced equipment and units in our refinery. At 97 m, the refinerys crude column is Asias tallest and capable of enhanced separation of petroleum products. The DHDS reactor is also the largest in its category capable of producing Euro V compliant diesel. The refinery is, in fact, unique in its complexity and its ability to produce valueadded products. All units have operated many notches over their rated capacities with the crude unit achieving over 14 million tonnes (300,000 bpsd) in the very first year of operation. This is a first for any refinery in India. We are expanding the refinery capacity to 18 million tonnes with an increase in its complexity from 6.1 currently

to 11.8 on the Nelson index. As part of a continuous optimization programme, the company has decided to further expand the refinerys capacity by 2 million tonnes to 20 million tonnes (405,000 bpsd) by September 2012. If market conditions are favourable, the capacity will be enhanced further to 38 million tonnes, with a complexity of 12.8. Until date, our Vadinar refinery has successfully processed more than 32 varieties of crude from across world, including some of the toughest crudes. Plans are afoot to expand the refinery capacity threefold in the next few years. Post expansion, the Vadinar refinery will be among the five largest single-location refineries in the world.

Retail and Marketing Essar Oil serves retail customers through a modern, countrywide network of over 1,376 retail outlets, with plans to increase the numbers to 1,700 retail outlets by March 2011. We were the first private Indian company to enter petro retailing, looking beyond urban markets and reaching out to consumers in Indias heartland. We offer a wide range of products to bulk customers in the industrial and transport sectors. EOL has product offtake and infrastructure sharing agreements with oil PSUs, namely Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Indian Oil Corporation (IOCL). We have received approvals to supply Aviation Turbine Fuel (ATF) to the Indian Armed Forces

Exploration and production

We have a highly enriched technical team who believe in using the best international oil industry practices

The Exploration and Production (E&P) business of the company has participating interests in several hydrocarbon blocks for exploration and production of oil and gas. Spanning Asia, Africa and Australia, we have a diverse portfolio of offshore and onshore oil and gas blocks as well as Coal Bed Methane (CBM) blocks. Portfolio Ratna and R-series fields near the Mumbai High field in the Mumbai offshore basin 50 percent interest in one shallow water offshore exploration block MBOSN-2005/3, near the Mumbai High field in the Mumbai offshore basin 70 percent operating interest in Mehsana oil and gas block that has started crude production 100 percent interest in 1 CBM block in Rajmahal, Jharkhand 100 percent interest in 1 CBM block in Raniganj, Durgapur, West

Bengal, which is close to commercial production 100 percent interest in 1 CBM block in Sohagpur (Parts of Madhya Pradesh and Chhattisgarh) 100 percent interest in 1 CBM block in Talcher, Orissa 100 percent interest in 1 CBM block in IB Valley, Orissa 100 percent interest in 2 exploration blocks in Assam 100 percent interest in 1 exploratory block in Nigeria shallow offshore 100 percent interest in 1 oil and gas block in Vietnam 100 percent interest in 2 exploratory blocks in Madagascar 100 percent rights in 2 exploration blocks in Northern Territory, Australia offshore 49.5 percent interest in 1 on-land exploration South East Tungkal block in Indonesia We were the first Indian company to recognize the CBM potential in India in the early 1990s, and undertake drilling, hydro-fracturing and de-watering of three CBM wells, in the Cambay Basin near Mehsana, Gujarat, India. The economic viability of the project was established through this pioneering work. We are a horizontally integrated enterprise with full service capability including drilling rigs, services equipment, engineering and construction, etc. that are important business segments of the Group. The multidisciplinary team approach facilitates the use of resources in personnel, hardware / software and the right alliances to adopt best practices in exploration and development. Essar Oil has set up a highly enriched technical team that includes geologists, geophysicists, petrophysicists, petroleum engineers, reservoir engineers, well loggers, project managers and drillers, along with a highly motivated management team, consisting of specialists in finance, business development, logistics, human resources, and project consultancy. This team operates all our E&P blocks using best international oil industry practices

with due regard to health, safety and environment, and also respecting the local socio-political environment in the various countries of operations.

Refinery
Essar's oil refinery at Vadinar in Jamnagar, Gujarat, is ideally located on India's west coast in proximity to the crude-rich gulf states Vadinar is an all-weather, deep-draft natural port. About 70 percent of India's crude imports land in and around this region. Besides, the refinery's location enables access to the fast-growing markets in the north and western region of India through product pipelines. The eastern and southern parts of India will be serviced through the coastal route circling the country. This world-class 14-million tonne refinery produces fuels compliant with latest emission standards, and is being progressively expanded to 20 million tonnes (405,000 bpsd) by September 2012. The refinery has been built with state-of-the-art technology with technical and project assistance from the world's leading consultants and equipment suppliers in the field. It is designed to handle a diverse range of crude mixes. The world-class refinery produces middle distillates like Aviation Turbine Fuel, kerosene oil and high-speed diesel, as well as LPG and transport fuels conforming to Euro III and Euro IV product quality standards. Post expansion, the refinery will have a Nelson Complexity of 12.8 with a capability of processing tougher crudes and producing petroleum products of very high quality, meeting Euro V standards. The refinery is fully integrated with its captive power plant (currently 500 MW being expanded to 1,200 MW), port and terminal facilities. It includes rail, car and truck loading facilities and a Single Point Mooring (SPM)

capable of handling vessels up to 350,000 dead weight tonnage with a marine product dispatch capacity of 14 million tonnes. The refinery has built-in environment friendly technologies for pollution management. A self-sustainable, 700-acre greenbelt with over three lakh saplings has been developed to ensure a green corridor around the entire refinery complex. World-renowned processes - with the world technology leaders at work. In Mombassa, Kenya, we have a 50 percent stake in a 80,000-bpsd refinery run by the Kenya Petroleum Refineries Ltd (KPRL); the remaining 50 percent is owned by the Kenyan government. Major units Crude Distillation Unit: Current potential capacity of 14 million tonnes Vacuum Distillation Unit: Current potential capacity of 7.2 million tonnes Vis Breaker Unit: Current potential capacity of 2.23 million tonnes (Axens, France) Continuous Catalytic Regenerator: Current potential capacity of 1 million tonnes (Axens, France) Fluid Catalytic Cracking Unit: Current potential capacity of 3.36 million tonnes (Stone & Webster) Diesel Hydro Desulphurisation unit: Current potential capacity of 4.5 million tonnes (Axens, France) Naphtha Hydro Treater: Current potential capacity of 1.67 million tonnes Dedicated infrastructure includes a captive power plant (currently 500 MW, being expanded to 1,200 MW), dispatch facilities by rail, road, sea and pipeline, associated tankages, pipelines, water intake facilities, and a Single Buoy Mooring system, which can accommodate Very Large Crude Carriers, to receive crude

Marketing
Our retail outlets seek to redefine the way fuels are retailed in India Retail business The retail business unit of Essar Oil is oriented towards delivering better and faster service to its customers. Essar pioneered the concept of setting up retail outlets using the franchisee-owned, franchiseeoperated model. With a pan India network of 1,376 retail stations, Essar reaches every corner of the country covering the national and state highways and the rural areas, plans to increase the numbers to 1,700 retail outlets by March 2011. Essar Oil supplies high quality Petrol and High-Speed Diesel. Our widespread network has created an excellent land bank resulting in the development of Non-Fuel Retail (NFR). It is a promising business channel for our retail today since it facilitates high footfalls, increased customer activation and high recall value with a profitable utilization of the retail site. All NFR activities are designed to serve the varying needs of our customers. This has created some mutually beneficial alliances across various categories such as Automobiles, Lubricants, Agrochemicals, Banking, Telecom and Food and Beverages. These tie-ups with leading players such as Exide, SERVO, CASTROL, TOTAL, ELF, SBI and Western Union Money Transfer and Amul have facilitated maximum customer convenience and satisfaction. A recent addition in the Non Fuel Retail is the take away counter of the popular Biryani House in Hyderabad. Today, we are slowly emerging as a one stop destination for all the retail customers with ever changing needs.

Bulk business EOL offers a wide range of products to bulk customers in the industrial and transport sectors. A range of petroleum products covering numerous applications are on offer to industrial customers like power plants, and chemical, fertilizer and shipping companies. It has received approvals to supply Aviation Turbine Fuel (ATF) to the Indian Armed Forces, and has tie-ups with oil marketing companies, namely Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL). Bulk products currently offered by us: Product LPG SKO ATF Application Domestic fuel Domestic fuel Commercial airlines, defense services

Furnace oil (180 Cst / 380 Cst) DG set, boiler, furnace, marine Bitumen feed stock Sulfur MS (BS II, BS III) HSD (BS II, BS III) Process, industrial Chemicals industry Automotive fuel Automotive fuel, industrial, DG set

Export of Oil &petroleum Product

India's average petroleum products export grew from 0.77 million barrels a day in January 2009 to one million barrels a day in August 2009. In the current year, the average oil products export from India stands at 1.07 million while South Korea exports average 0.88 million. In fact, India's refining capacity at 3.69 million barrels a day is the third largest in Asia after China and Japan, which have a refining capacity of 9.6 million bpd and 4.64 bpd respectively. Platts compilation is based on the data from individual countries. Both Reliance Industries' Jamnagar and Essar's Vadinar refineries contribute more than 90 per cent of the petroleum products exports while the rest is by public sector oil companies, said Ms Vandana Hari, Asia Editorial Director, Platts. According to her, petroleum products exports from India holds great potential as both RIL and Essar have high complexity refineries which make products that meet Euro IV and Euro V standards. Europe, the US and Africa are identified major markets for Indian refiners. Growing demand The growing overseas demand for petroleum products from India is reflected in export volume growth of Reliance and Essar. RIL exported 32.8 million tonnes of refined products last fiscal against about 22.6 million tonnes for the previous period, fetching revenue of $20.9 billion (Rs 1,10,176 crore). Essar's Vadinar refinery has a total current throughput capacity of 14 million tonnes a year. Of the total production, about 30 per cent is exported while more than sixty per cent of refined products are sold to public sector oil marketing companies.

Reliance Industries and Essar Oil are among about half a dozen firms in race to buy crisis-hit British energy giant BP's fuel marketing assets in east African countries. Reliance and Essar have offered between $400 to 500 million for BP's assets in the East African nation, they said. Essar Oil had last year acquired a 50 per cent stake in 4 million tons a year Kenya Petroleum Refinery in Mombasa.

Essar Oil picks up 50 % stake in Kenya-based refinery

Ruias-owned Essar Oil today announced acquisition of 50 per cent stake in a 4 million-tonne oil refinery in Kenya. The company acquired 50 per cent stake of western energy majors Shell BP and Chevron in Kenya Petroleum Refineries Ltd, Essar said.

Imports of Oil & petroleum product

According to Oil & Gas Journal (OGJ), India had approximately 5.6 billion barrels of proven oil reserves as of January 2010, the second-largest amount in the Asia-Pacific region after China. Indias crude oil reserves tend to be light and sweet, with specific gravity varying from 38 API in the offshore Mumbai High field to 32 API at other onshore basins. India produced roughly 880 thousand barrels per day (bbl/d) of total oil in 2009 from over 3,600 operating oil wells. Approximately 680 thousand bbl/d was crude oil, the remainder was other liquids and refinery gain. In 2009, India consumed nearly 3 million bbl/d, making it the fourth largest consumer of oil in the world. EIA expects approximately 100 thousand bbl/d annual consumption growth through 2011.

Nearly 70 percent of Indias crude oil imports come from the Middle East, primarily from Saudi Arabia, followed by Iran. The Indian government expects this geographical dependence to rise in light of limited prospects for domestic production.

Downstream/Refining Essar Oils Vadinar refinery expansion of 110,000 bbl/d in 2011, 120,000 bbl/d greenfield refinery in Bina in 2011 by a joint venture between Bharat Petroleum Corporation Limited and Oman Oil Company Limited, a 180,000 bbl/d grassroots refinery in Bhatinda in 2014 by Hindustan Petroleum Corporation Limited, and IOCs grassroots Paradeep refinery of 300,000 bbl/d in 2015. India is slated to add 840 thousand bbl/d of refining capacity through 2015 based on currently proposed projects.

Questionnaire (Answers are given by Mr. Jagdish Narwekar)

1) Your Exports are in which countries? Ans : Our business is mainly with Asian and African countries. We are exporting our products to UK, Dubai, Singapore, Kenya, South Africa etc. 2) Which benefits you receives from government at the time of recession? Ans: While importing crude oil from other country we have to pay 5 % custom duty to government, but at the time of recession government removed that custom duty only that much benefit is given by the gornment nd after recession government again imposed that duty. 3) Any problems occur at the time of import or export? Ans: We didnt faced any problem at the time of export till now. But recently while importing crude oil from Iran we faced some payment related problem. 4) Do you think custom formalities are more than enough? Ans: Yes, I think it is sufficient.
5)

Any difficulties incurred during export/import documentation procedure?

Ans: No , all the documents are standard documents so no difficulty.

6)

Any company which gives you neck-to-neck competition? Name them.

Ans: Reliance industries are our big competitors. Also Government industries like Indian oil, Bharat petroleum (BPC), HPCL etc. 7) What is the source to get information from overseas market? Ans: Various business related magazines, Newspapers, Business news channels, Websites etc. are our sources of informations.

8)

What kind of strategy do you have, which keeps good relation with foreign buyers?

Ans: As our company is one of the leading company in this business, our customers have faith on us. We gave quality product to our customer, timely delivery of product. And as per our importers are in concerned we gave them payment on time. 9) Could you give us an example how Chambers of commerce helps out your company in export / import trading? Ans: As I said before our company is a big company and we are having many years experience in this field, so we dont need the help of any govt organization. Only we do our trading. 10) Which types of bills of exchange do you use?

(Documents are send 1st & then payments or payments 1st then documents) Ans: Documents are send 1st then payment for that 30 min time period is given. 11) Name the major countries in which your company product are been delivered? Ans: As I said before, Our business is mainly with Asian and African countries. We are exporting our products to UK, Dubai, Singapore, Kenya, South Africa etc. 12) Your company turnover goes around?

Ans: Around 50,000 cr. p.a 13) Do you have clearing and forwarding agent to sell your in overseas market? Ans: Yes we have, our offices are also there in UK, Kenya and other African countries.

Conclusion
Essar ltd. is a big organization. They are actively present in many business. Our project is mainly concerned with Essar oil and petroleum Ltd. Through our this project we learned the lots of things about the Import/Export. For good export and import company should maintain good relations with their customer.

If any problems or difficulties occurred during exporting or importing company should solved that problem in right manner because not only the companys image but the countrys image is also involved in that. There should be mutual understanding between both the parties who are doing business with eachother.

They should have faith on each other. And last but not the least quality product , timely delivery and payment on time these are the important things while importing as wel as exporting.

Bibliography

www.essar.com

Wikipedia

www.google.com

Times of India