Essar Group’s Debt Repayment Is The Largest Ever In India

Summary

Prashant, from the SR group, discusses the company's transformative journey over the past few years at Davos. The group underwent significant deleveraging, monetizing assets to the tune of $25 billion, equivalent to 200,000 crores in rupees, over three to four years. This process has allowed them to repay all debts, setting the stage for a new phase of growth focused on energy, metals, mining, infrastructure, and technology sectors, with an emphasis on ESG-centric and future-ready technologies.

Takeaways

• 📍 Prashant and his team have been busy reinventing the SR group over the last few years.
• 🌐 The SR group has a significant presence in metals, mining, energy, and infrastructure businesses.
• 💹 They underwent a phase of deleveraging, monetizing assets and raising approximately 25 billion dollars.
• 💼 This deleveraging resulted in a reduction of about 200,000 crores in debt, one of the largest in India.
• ⏳ The debt reduction was achieved over a span of three to four years.
• 💼 The monetization included key assets such as SR Steel, SR Oil, and a BPO business.
• 💡 The debt has been fully repaid, with all obligations to the Indian banking system settled.
• 🔄 The company's strategy has three main themes: deleveraging, consolidation, and growth.
• 🛠️ Consolidation involved streamlining the operating companies within the group post-monetization.
• 🌱 The current phase is focused on growth, particularly in energy, metals, mining, infrastructure, technology, and services.
• 🌿 The group is looking to invest in new ESG-centric technologies to build future-ready businesses.

Q & A

What has Prashant been focusing on with the SR group in recent years?

Prashant has been focusing on reinventing the SR group, which includes deleveraging the group, monetizing assets, and preparing for future growth.

Why was the SR group's presence at Davos significant after a few years of absence?

The SR group's presence at Davos after a few years of absence due to the COVID-19 pandemic is significant as it marks their return and highlights their progress and achievements.

What phase did the SR group go through that involved monetizing assets?

The SR group went through a phase of deleveraging, where they monetized some of their key assets to reduce debt.

How much did the SR group monetize their assets for in the last few years?

The SR group monetized their assets for approximately 25 billion US dollars, which is equivalent to 200,000 crores in rupees.

What was the time frame for the SR group's asset monetization?

The asset monetization took place over the last three to four years.

Which companies were part of the SR group's asset monetization?

The companies involved in the asset monetization were SR Steel, SR Oil (the refinery), a BPO business, and a few other assets.

Has the SR group completed the process of repaying their debt?

Yes, the SR group has repaid all their debt, indicating that the debt issue is resolved.

What is the current phase of the SR group's strategy after deleveraging and consolidation?

The current phase is growth, with a focus on investing within the same sectors but with a new emphasis on ESG-centric technologies and future-ready businesses.

What are the four sectors the SR group has been involved with for the past two decades?

The four sectors are energy, metals and mining, infrastructure, and technology and services.

What is the future direction of the SR group's growth strategy?

The future direction involves investing in new technologies that are ESG-centric, aiming to build businesses that are ready for the future.

How does the SR group define 'future-ready businesses'?

Future-ready businesses, in the context of the SR group, are those that are built on new, environmentally and socially conscious technologies, aligning with ESG (Environmental, Social, and Governance) criteria.