Essar Group’s Debt Repayment Is The Largest Ever In India
Summary
TLDRPrashant, 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.
Outlines
📈 De-leveraging and Asset Monetization at SR Group
The speaker, Prashant, discusses the SR group's transformation over the past few years, focusing on the significant de-leveraging process. The group, which was involved in metals, mining, energy, and infrastructure, underwent a phase of asset monetization, raising approximately $25 billion, equivalent to 200,000 crores in rupees, over three to four years. This is considered one of the largest cooperative de-leveragings in India. The monetization involved key assets such as SR Steel, SR Oil, and a BPO business, leading to the complete repayment of debt to the Indian banking system. The speaker emphasizes the completion of this phase and the readiness to move towards growth and investment in new sectors with an ESG-centric approach.
Mindmap
Keywords
💡Reinventing
💡Deleveraging
💡Monetization
💡Cooperative Leveraging
💡Rupee Value
💡Strategy
💡Consolidation
💡Growth
💡ESG-Centric
💡Future Ready
💡Infrastructure
💡Technology and Services
Highlights
Prashant discusses the reinvention of the SR group over the past few years.
The SR group has been involved in metals, mining, energy, and infrastructure businesses.
The group underwent a phase of deleveraging, monetizing assets to reduce debt.
They raised approximately $25 billion through asset monetization, one of the largest in India.
The equivalent rupee value of the monetization is about 200,000 crores.
The deleveraging process took place over three to four years.
Key assets that were monetized include SR Steel, SR Oil, and a BPO business.
The debt has been completely repaid, with no remaining obligations to the Indian banking system.
The future strategy involves three main themes: deleveraging, consolidation, and growth.
Deleveraging is now complete, followed by the consolidation of operating companies.
The group is entering a phase of growth, focusing on energy, metals, mining, infrastructure, and technology sectors.
Investments will be made in new ESG-centric technologies to build future-ready businesses.
The SR group aims to invest within the same sectors but with a focus on sustainability and new technologies.
The strategy reflects a shift towards environmentally and socially responsible practices.
The reinvention process has positioned the SR group for sustainable growth and innovation.
Transcripts
Prashant and you've been busy for the
last few years
Reinventing the SR group uh tell us
about uh what that process has been like
and where you stand today
first of all thank you for having us
it's amazing to be back here in in Davos
after a couple of years which was cut
off because of the covet but it's
amazing and it's nice to be here again
and thank you for having us uh from an
Sr perspective it's been an interesting
period last few years
we we as you know we've been involved in
uh in metals and Mining energy
infrastructure businesses but uh we
obviously went through a phase of
deleveraging uh the group we monetized
some of our assets
we delivered about 25 billion dollars
which I do believe is one of the largest
Cooperative leveraging in India if 25
billion dollars over what period of time
over the last uh three to four years and
and what's the rupee value for that it's
about 200 000 crores 200 000 crore I
just want that headline to sink in 200
000 crore in uh less than five years
how did that happen well we uh we we
decided a few years ago that we wanted
to deliver we wanted to want it and the
only way we felt the right way to do
that would be to monetize some of our
key assets uh which we did and uh and
that and that led to that process is now
largely complete and that has led to
this significantly leveraging the
monetization values which we received
which was obviously around 200 000
crores so so what are the companies just
for for the people of the uh who are
watching us Sr steel yeah it's basically
Sr steel Sr oil the refinery
and uh and then we had a BPO business uh
which we also monetized and then a few
other bits so the debt is done and
dusted the debt is not interested I
would say 100 we have repaid all the
back all the debt and 100 we are
repaying all the debt of the Indian
banking system okay and what are the
implications of uh that for for your
future strategy so exactly so that we
decided our strategy around three three
teams the First theme was uh
deleveraging which is largely now
complete uh the second was consolidation
of the operating companies within the
group uh post the monetization
uh that process also we have now largely
complete over the last two years
and and now we are entering the phase of
uh growth once again so that's how we've
we've looked at uh at the group uh and
and when we say growth once again
what we mean is uh investing within the
same sectors so energy metals and Mining
infrastructure and technology and
services those are the four sectors
we've been involved with for the last
two decades I would say but investing in
new ESG
Centric new technologies which would
build Future Ready businesses
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