ESSAR STEELHistory

The Essar Group was founded in 1969 by brothers Shri Shashi Ruia and Shri Ravi Ruia.

The Essar Group began its operations with the construction of an outer breakwater in Chennai port. It quickly moved to capitalise on every emerging business opportunity, becoming India’s first private company to buy a tanker in 1976.

In the 1990s, Essar began its steelmaking business by setting up India’s 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.

The Construction business helped the Group build most of its business assets. Essar also entered the GSM telephony business, establishing India’s first mobile phone service in Delhi (branded Essar Cell phone) with Swiss PTT as the joint venture partner.

ESSAR STEEL Company Essar Global Limited is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, and Construction. Essar Global employs over 40,000 people across offices in Asia, Africa, Europe and the Americas. With a firm foothold in India, Essar Global has been focusing on global expansion with projects/investments in Canada, USA, Africa, the Middle East, the Caribbean and South East Asia. Privately owned and professionally managed, Essar is judiciously invested in the commodity, annuity and services businesses.

Forward and backward integration, state-of-the-art technologies, in-house research and innovation have made Essar Global a leading player in each of its businesses. Essar’s abiding philosophy is to be a low cost, high quality, technology driven group with innovative customer offerings.

Salient Features of the company Essar Steel is India's largest exporter of flat steel products Essar Steel is the largest steel manufacturer on the West Coast of India Essar Steel has the first Indian steel plant to receive ISO 14001 award for

environment management and ISO 9002 for the entire plant operations

Vision And Mission of the company.

Vision We will be a respected global entrepreneur, through the power of Positive Action.

Mission We are committed to innovative growth, through our personal passion, reinforced by a professional mindset, creating value for all those we touch.

Beyond business Essar’s PolicyThe Essar Group is both a people-driven and people-centric organization. It understands the value that people deliver in the making of a great company. The Group’s spirited involvement in community service is inspired by these beliefs. The Group’s ethos on social responsibility focuses on not just taking care of its

own employees but enabling and enriching the communities around the areas where its plants are located. In addition, the Group has been at the forefront in rendering aid and assistance by way of donations as well as relief supplies in times of national calamities, such as the Tsunami, earthquakes and floods.

Human Resource Polices of the CompanyAt the Essar Group, we believe that excellent individuals build excellent companies. And by transforming each employee into a highly motivated, satisfied and productive team member, we will create an outstanding organization. We also understand that each individual has unique talents and expectations from the organization. Based on those principles, human resources development at Essar is customised, flexible and well planned. Every Essar employee is meticulously selected and given the freedom to be innovative, within a work culture that is non-bureaucratic and result-oriented. We work with employees to develop personalized and flexible individual plans for career growth, retention and compensation within a carefully structured work framework. Through extensive career mapping, we offer a choice of career paths that could include job rotations across functions and Group Companies. Essar's wide range of businesses and exciting pace of growth presents a range of opportunities and exposure that only a few others can match. The Group has a very serious commitment to continuous training and development. Our Essar Learning Centre provides year-round training. Thus, a career with Essar will offer you a unique opportunity to unlock your own potential and realize excellence.

Employees MotivationThe underlying objectives of Essar’s activities is to motivate employees to participate in and contribute to the activities initiated by the Community Relations Centre, to create self-help groups for village women, to further overall development of children and women, and to spread awareness about AIDS and de-addiction.

Essar’s key focus areas Essar has outlined seven focus areas where employee involvement can make a difference to the lives of the community:

Education Self-employment Training Infrastructure development Medical Health & hygiene Recreation and welfare

Essar’s policy for the People who related with the company

People, our most valuable assets At Essar, we understand that excellent people deserve excellent people practices. That's why we design our human resource initiatives such that they unlock the full potential of every employee.

RecruitmentsWe welcome talented college graduates. We are a preferred employer at India's top engineering and business schools because we offer competitive compensation, diverse opportunities in terms of business and roles, fast growth and quick assumption of large responsibilities. For the same reasons, we are able to attract the best and the brightest talent at all levels.

Campus ProgramsThe Essar group has a strong emphasis on hiring at the entry level, to create a pool of talented employees who are developed and groomed to grow with the group. At the entry level, the group hires mainly through two types of programmes:

Management trainee programmes Graduate trainee programmes Business leadership programmes

Management trainee programmesThrough the management trainee programmes, Essar hires post graduate management students from top ranking business schools throughout India. Trainees are initially hired as a group resource for a range of functions such as marketing, finance, human resources and operations. Essar makes selections between December and February, through a rigorous selection process. Selected candidates then go through a comprehensive one-month induction programme,

which includes classroom sessions, an introduction to all the group companies, plants and corporate functions, and a six-day executive leadership camp at the Essar Learning Centre. Soon after the induction, in an interview with corporate human resources each trainee has the opportunity to discuss mutual expectations, a career map and the group company and assignment that he or she will be posted to. Trainees are confirmed after completing the one-year management trainee programmes. Depending on their capabilities, management trainees can usually look forward to a faster career track, an expanded role and eventually, a leadership position within the organization.

Graduate trainee programmesThe Essar group prides itself on using global-scale, world-class technology in all its companies. To maintain our technical edge, the group hires engineer trainees annually between August and January. Essar hires graduate engineer trainees (GETs) from the IITs and the top-ranking regional engineering colleges across the country and diploma engineer trainees (DETs) from the best polytechnics in Gujarat, Andhra Pradesh and Tamil Nadu and other regions of the countries to source the best talent available. These trainees are hired for specific group companies. After they are selected, they go through an induction programmes at the company, which includes classroom sessions and plant visits. Soon afterwards, each trainee has an interview with the Essar Learning Centre head, to discuss his or her immediate placement and future growth prospects. Trainees are confirmed after a one-year training programmes for GETs and a two-year programmes for DETs. Depending on their capabilities, both GETs and DETs can look forward to increasing their technological expertise, a growing technical specialization and key senior operational and technical roles within the company.

Building careers Essar has a high emphasis on performance, and we link both career growth and rewards directly to merit and achievement. We customize career paths and retention plans according to the unique needs of an individual. Right from the entry level, we draw career maps for each employee, outlining possible alternate career paths, which could include planned job rotations between functions or even group companies.

Solid performances, solid rewards Employees with a proven track record of high performance and potential are identified annually through a fast-track programmed evaluated by a top management panel. These achievers are rewarded with top-of-the-market compensation, retention bonuses and relevant training inputs.

Training and DevelopmentEssar has a very serious commitment to continuous training and development. Our world-class Essar Learning Centre provides year-round training. We provide numerous resources for self-assessment and development. Thus, a career with the Essar group offers a unique opportunity to unlock your own potential and realize excellence.

Continuous opportunities for development and growth - that’s the firm commitment that Essar makes to every single employee. The Essar group is one of India’s largest spenders on continuous training, investing about Rs. 1.4 crore (US$ 3 m) annually. Essar Learning Centre (ELC) at Hazira, Gujarat has emerged as one

of India’s foremost training facilities, training 2,000-odd people a year through 7,000 man days of training.

Being a dedicated facility, the ELC allows us to design tailor-made and flexible programmes, so that training at Essar is always relevant and customized both to business needs and the needs of the individual. Our programmes cover a wide range of technical, functional and behavioral training, from materials management to e-commerce procurement to transformational leadership and communication and negotiation skills. Our faculty includes the best of experts and practicing managers. Since we believe in imparting managerial & behavioral training, we also include a number of non-business modules like corporate etiquette or parenting skills. The ELC also has extensive resources for self-development such as a business library of books and audiovisual material. Thus, we support and encourage all Essar employees to develop themselves to the fullest.

Executives Leadership Camp (ELC)The Executive Leadership Camp (ELC) is a six-day residential programmes held at the Essar Learning Centre at Hazira, Gujarat. This comprehensive programmes transforms junior management employees into effective business executives.

Features of the camp Participants in this holistic programme begin their day with yoga. Throughout the camp, they learn more about Essar's key values and culture through modules like quality & customer orientation, Essar leadership values, organizational & behavioral etiquette, a value meet and a plant visit. They learn how to become part of the organization team through modules like self-awareness and interpersonal relationship, conflict management, group dynamics and team building, leadership & leadership styles & followership. The programme also builds their personal management skills by teaching useful skills like assertive skills, time management and presentation skills. A fun outbound module allows them to reinforce and use skills like teamwork or strategic thinking through

specially designed outdoor games and activities such as a treasure hunt or rappelling.

Management Development Programme (MDP)The Management Development Programme (MDP) is a six-day residential programmes that aims to prepare middle management executives for newer roles in a changing environment. The MDP helps make middle managers active and effective participants in organizational processes like planning, implementation and decision-making.

Features of the CampAfter beginning their day with yoga, participants learn how to contribute to organizational growth and excellence through modules like Essar leadership values, quality (kaizen), customer satisfaction, striving for excellence, cost reduction and continuous improvement. They learn how to be effective managers with modules like the role of a manger in the present scenario, performance management, goal setting, team building, people development, conflict management and counseling skills. The programmes enhances their personal management skills by teaching segments like self-awareness, leadership, assertive skills, motivation, integrity/personal values, negotiation skills and corporate etiquette. A fun two-day outbound module allows them to reinforce and use skills like teamwork or strategic thinking through specially designed outdoor games and activities such as a treasure hunt or rappelling.

Management Team

(Promoter Directors)

Shri. Shashi Ruia (Chairman) Shri. Ravi Ruia (Vice Chairman)

Prashant Ruia (Director) Anshuman Ruia (Director)

Smiti Kanodia (Director) Rewant Ruia (Director)

Corporate FunctionsMr. S. V. Venkatesan(Resident Director – Chennai)

Mr. J. Mehra (Resident Director - New Delhi)

Mr. Jayesh Buch(Resident Director – Ahmedabad)

Mr. Madhu S. Vuppuluri (Resident Director - New York)

Mr. Suresh Sundaram(Director - Corporate Aviation)

Mr. Adil Malia(President - Human Resources)

Mr. Sunil Bajaj(President - Corporate Affairs)

Mr. Mukesh Bhavnani(President – Legal)

Mr. Vijay Mehra (Chief Information Officer)

Mr. Sharad Goel(Group Head - Media Relations)

Mr. N. S. Paramasivam(Group Head - Forex & Treasury)

Mr. Dinyar M. Jivaasha (Group Head - Corp. Risk & Ins. Mgmt.)

SUGGESTION SCHEME FOR PARTNERS IN GROWTH

Since inception, SRUJAN VIKAS, Suggestion Reward Scheme in Visakhapatnam Steel Plant (VSP) has been playing a prominent role to unleash the hidden talents of employees, resulting in huge tangible and intangible benefits to the company.

Customers and Suppliers of VSP also play a major role in building the strong image of VSP. Hence, it has been decided by VSP management to capture the voice of customers and suppliers through appropriate forum to improve customer and supplier interface and serve them better. In these lines, a suggestion scheme has been evolved and launched in VSP with a view to encourage customers and suppliers to offer constructive suggestions for improvement in different areas. The salient features of the scheme are as follows:

1) Customers of RINL can give suggestions in prescribed Customer Suggestion forms available at Customer Relations Management Cell, all branch sales offices of Marketing and Marketing Head Quarters.

2) Suppliers of RINL can also give suggestions in prescribed Vendor Suggestion forms available at Vendor Development Cell of Materials Management Department.

3) Acknowledgement letter after receiving suggestions will be given by the concerned section / department to the suggestor.

4) A committee comprising of HOD of Marketing, HOD of MS Department and member from Finance (not below the rank of E-5) will evaluate the suggestions received from the customers.

5) A committee comprising of HOD of Materials Management Dept., HOD of MS Dept. and member from Finance (not below the rank of E-5) will evaluate the suggestions received from the suppliers.

6) All accepted suggestions will be implemented by respective departments.

7) Mementoes will be given to selected suggestors at Annual Customers Meet / Vendors Meet / Appropriate forum.