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History of Essar Ports Ltd., Company
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Essar Ports Ltd. Company History and Annual Growth Details

YEAR EVENTS
1975 - The Company was Incorporated on 5th April, at Bangalore in
Karnataka State. The Company Operate fleet of crude oil and
product oil tankers, off-shore supply vessels, diving support
vessel and bulk carriers.

- The Company is a part of the Essar Group of Companies founded by
the late Nand Kishore Ruia. The Group was engaged in several
activities of which the shipping activities were carried on by
Essar Bulk Carriers Ltd., a wholly owned subsidiary of Essar
Investments Ltd. (EIL). Karnataka Shipping Corporation Ltd. was
incorporated on 5th April, 1975. It was promoted in the joint
sector by the Karnataka Government.

- Pursuant to a Scheme of Amalgamation approved by the High Courts
at Bangalore and Chennai, Essar Bulk Carriers Ltd., was merged
with Karnataka Shipping Corporation with effect from 1st April,
1983. The name of KSCL was subsequently changed to Essar
Shipping Ltd.

1984 - 161,39,630 No. of equity shares issued during 1983 without
payment in cash to members of Essar Bulk Carriers Ltd. on its
merger with the Company in prop. 5 equity shares of Essar
Shipping for every equity share of Essar Shipping for every
equity share of Essar Bulk Carriers Ltd. Pref. shares redeemable
during 16.12.1990/93.

1985 - The Company was considering diversification into petrochemicals,
iron and steel, off-shore and on-shore construction, development
of petroleum refineries, etc.

- The Company proposed to enter into the fields of manufacture of
sponge iron, off-shore drilling for oil exploration and natural
gas resources, dredging operations for deepening ports, harbours,
etc. The Company proposed to participate to the extent of Rs 15
crores in the equity capital of Essar Gujarat Ltd., which was
setting up a sponge iron project.

- Necessary approvals were received for investment of Rs 9.40
crores in the Equity of Essar Gujarat Ltd., for the setting-up of
hot briquetted sponge iron plant in Hazira, Gujarat.

- In August, the Company issued 50,00,000 No. of equity shares of
Rs 10 each linked to 3,00,000 - 13.5% secured redeemable
non-convertible debentures of Rs 100 each, both at par. Of the
issue, 2,50,000 No. of equity shares and 15,000 debentures were
reserved for preferential allotment to employees of the Company
and 1,00,000 shares and 6,000 debentures for business associates.
The remaining 46,50,000 shares and 2,79,000 debentures were
offered to the public. Both preferential and public offer were
fully taken up.

- These 13.5% debentures would be redeemed at a premium of Rs 5 per
debenture on the expiry of 10 years from the date of allotment
with an option to the Company to redeem the same at any time
after seven years in one or more instalments.

1987 - With the addition of 8 ships, the Company owned and operated 7
product/crude oil carriers, 5 off-shore supply vessels, 3
multi-support vessels, 5 bulk carriers and 1 drill ship.

- Approval in principle was received from the Government of India
for acquisition of 12 vessels, 6 bulk carriers, 1 multi-support
vessel, 1 chemical tanker, 1 product carrier, 1 drill ship and 2
LPG Ammonia carriers.

- During February, the Company issued 17,50,000 - 13.5% secured
partly convertible debentures of Rs 225 each for Rs 39.38 crores
out of which the following debentures were reserved for
preferential allotment:

- (i) 5,00,000 debentures to the existing shareholders of the
Company other than Essar Investments Ltd. (all were taken up),

- (ii) 2,50,000 debentures to non-resident Indians on repatriation
basis (only 2,25,240 debentures taken up)

- (iii) 87,500 debentures to employees (including Indian working
directors)/workers of the Company and associate companies (only
16,290 debentures taken up),

- (iv) 35,000 debentures to business associates of the Company (all
were taken up),

- (v) 2,22,000 debentures to UTI (all were taken up) and

- (vi) 22,220 debentures to General Insurance Corporation of India
(all were taken up).

- The balance 6,33,280 debentures, along with the unsubscribed
portion of 95,970 debentures out of the preferential quota, were
offered for public subscription during February 1987. Additional
4,37,500 debentures for Rs 9.84 crores were allotted to retain
oversubscription (8,750 debentures to the business associates of
the Company, 1,25,000 debentures to the shareholders of the
Company and 3,03,750 debentures to the public).

- These debentures comprised a non-convertible part of Rs 75 and a
convertible portion of Rs 150. Rs 75 of the convertible portion
of Rs 150 was to be converted into five fully paid equity shares
of Rs 10 each at a premium of Rs 5 per share on the expiry of six
months from the date of allotment and the remaining Rs 75 was to
be converted into five fully paid equity shares of Rs 10 each at
a premium of Rs 5 per share on expiry of twelve months from the
date of allotment of debentures.

- The non-convertible portion of Rs 75 per debenture would be
redeemed at par at the end of 7th year from the date of allotment
of the debentures.

- 102,01,550 No. of equity shares issued (prem. Rs 5 per share) on
15.10.1987 in conversion of debentures.

1989 - It was proposed to acquire modern vessels such as Afframax
tankers, LPG carriers, Product Tankers and Bulk carriers.

- The Company made an issue of 40,00,000 - 14% secured redeemable
non-convertible debentures of Rs 100 each on rights basis to the
members and debentureholders of the Company.

- 1,12,68,950 No. of equity shares issued (prem. Rs 5 per share) in
terms of the conversion of debentures.

- 2,51,100 No. of Equity shares issued (Pref. Rs 5 per share) on
conversion of debentures, 8,50,000-14% cumulative redeemable
pref. shares issued to financial institutions privately.

1990 - Six mini bulk carriers and a product tanker were added to its
fleet. The Company proposed to undertake the third phase
envisaging acquisition of bulk carriers, tankers and offshore
supply vessels.

- The Company issued 15,00,000-14% secured redeemable
non-convertible debentures of Rs 100 each to financial
institutions on private placement basis.

1991 - Two Suezmax tankers of 1,40,000 DWT each and three mini bulk
carriers were added to its fleet as a part of the third phase of
its expansion programme.

- During July, the Company made an open offer to the equity
shareholders of South India Shipping Corporation, Ltd. (SISCO)
for acquisition of an aggregate minimum of 1,20,000 No. of equity
shares of Rs 100 each of SISCO, representing 20% of the present
voting capital of SISCO in the proportion of 50 equity shares of
Rs 10 each fully paid-up of the Company and Rs 65 in cash for
every one equity share of Rs 100 each held in SISCO.

- 16,800 No. of equity shares issued (prem. Rs 5 per share) on
conversion of debs. 39,40,550 equity shares allotted to
shareholders of SISCO pursuant to open offer made by the Company.

1993 - In addition to the few suezmax tankers, the company also added 4
tugs, 44 barges and 1 mini bulk carrier for meeting the
increasing cargo transportation requirement of Essar Gujarat Ltd.
for its steel plant at Hazira.

- The Company issued 2,51,86,190-16% partly convertible debentures
of Rs 70 each at par with a detachable warrant attached on rights
basis in the proportion of one debenture: 2 equity shares held.
Another 1,30,000-16% partly convertible debentures of Rs 70 each
were offered to the employees.

- Part A of Rs 20 of each debentures will be compulsorily converted
into one equity share of Rs 10 each at a premium of Rs 10 per
share on the expiry of six months from the date of allotment of
debentures.

- Each detachable warrant attached to Part B of Rs 50 of each
debenture will entitle the holder to one equity share of Rs 10 at
a premium of Rs 40 and will be called up at anytime between 1st
June 1993 and 30th June, 1994, as may be decided by the Board
Part B of Rs 50 of each debenture if not converted into equity,
will be redeemed at par in three instalments of Rs 20, Rs 15 and
15 on the expiry of 6th, 7th and 8th year respectively from the
date of allotment of the debentures.

- The Company obtained the approval from Government of India for
the insurance of Equity to foreign investors in the form of GDRs
for USD 172.50 million including retention of Greenshoe option of
15%.

- 9,000 shares issued on conversion of debs. 2,51,98,729 shares
issued on conversion of 16% PCD converted on 18th Dec. 1993.
11,49,350 shares allotted on 23rd Nov. 1994 to SCICI Ltd. in
terms of loan agreement, 200,00,000 shares at a prem. of Rs 70
per share to NRIs on private placement basis.

1994 - The Company proposed to acquire modern large sized vessels as and
when market condition showed favourable trends for acquisitions.

- The Company entered into a joint venture agreement with Poompuhar
Shipping Corporation Ltd., Chennai to form a joint venture
company under the name and style of 'Essar Chennai Shipping Co.
Ltd.' at Tamilnadu to cater to the coal transportation
requirements of Tamilnadu Electricity Board to meet the
increasing demand of its thermal power station.

- As per the agreement, Essar Group would be holding 51% of the
share capital of 'Essar Chennai Shipping Co. Ltd.'

- The State Bank of India has the right to acquire, through
conversion, fully paid-up equity shares of the Company equivalent
to 100% or any part of the outstanding loan amounts, at par, the
option being exercisable on one or more occasions at any time
during the currency of the loans under the SAFAUN scheme availed
of by the Company.

- 23,03,900 shares of Rs 5 per share were allotted on conversion
interest with conversion option on NCD-13.5% convertible
debentures in 1987.

- On 26th December, the Company allotted 248,28,377 No. of equity
shares of Rs 10 each on rights basis at a premium of Rs 15 per
share in the ratio of 1:4.

1995 - The Approval in principle was received from the Government of
India for acquisition of three shallow draft bulk carriers of
43-45, one DWT each by way of new building. Also, permission
was sought from Tamil Nadu Electricity Board for a long term
contract of affreightment for bulk carriers.

- 12,200 No. of equity shares allotted as on conversion from
remaining portion of warrants.

1996 - The Company operated its fleet of bulkers, tankers and OSVs for
13,102 days as compared to 10,210 days in the previous year. Dry
bulk carrier freight rates witnessed considerable fall.

- The Company proposes to set up a petro port project at Vadinar,
Jamnagar, Gujarat.

- 481,44,480 No. of equity shares issued to erstwhile South India
Shipping Corpn. Ltd. pursuant to the scheme of amalgamation.

1997 - The Company operated its fleet of bulkers, tankers, and OSVs,
with 98% efficiency for 3931 days as against 4004 available
operating days.

- The two shipping companies in the Essar group - Essar Shipping
and South India Shipping Corporation (Sisco) - are being merged
into one entity.

- Essar Shipping Ltd. proposes to diversify into port development
and related areas.

- Essar Shipping has tied up a Rs.763.20 crore ($212 million)
syndicated foreign currency loan through the Bank of Nova
Scotia, in order to retire the company's existing foreign
currency and rupee term borrowings.

- Essar Shipping has a diversified fleet of 22 ships, while SISCO
has a fleet strength of 11 ships. The company's fleet comprises
six modern double hull bottom Suezmax oil tankers, an ore bulk
carrier, and oil carriers, four product carriers, four offshore
vessels, seven bulk carriers, and 11 mini-bulk carriers.

1998 - The company proposes to set up a petro-port terminal project at
Vadinar, Jamnagar, Gujarat for the receipt, handling, storage
and dispatch of crude oil and petroleum products.

- The second largest shipping company in India, Essar Shipping
Ltd, mortgaged its vessels to raise a $ 191 million term loan
facility to refinance the company's existing banking
facilities.

- Essar Shipping Ltd, signed a $191 mn loan deal with the Bank of
Nova Scotia Asia Ltd., the largest-ever for the Indian shipping
industry. The loan facility will help refinance Essar
Shipping's existing banking facilities.

- Essar Shipping has a low debt equity ratio of 0.63:1 and the
current ratio at 4.70:1. Essar Shipping has eight bulk
carriers, 11 mini bulk carriers, 6 crude carriers and four
product tankers and three offshore supply vessels.

- ESSAR Shipping Limited is setting up a port and terminal
project adjacent to the petroleum refinery being set by Essar
Oil Limited at Vadinar in Gujarat.

- The Rs 800-crore Essar Shipping is expanding its fleet by
acquiring very large crude carriers (VLCCs). It may opt to
acquire vessels through the bare-boat-cum-demise (BBCD) route
so as to minimise financial burden on the company.

- ESL was also the first Indian shipping company to get the
International Safety Management (ISM) Code certification through
Lloyds Register of Shipping, for its entire fleet of bulk
carriers and tankers as early as 1995. The company has also got
ISO 9002 certification.

1999 - The Credit Rating Information Services India Ltd (Crisil) on
Thursday downgraded the Rs 126-crore non-convertable debenture
(NCD) of Essar Shipping, a fortnight before the date of repayment
of the principal amount of the issue. The NCD has been
downgraded from 'BBB+' to 'C'.

- Essar Shipping has a Rs 1,435-crore port facility under
construction at Vadinar for its refinery at Jamnagar. This
includes a state-of-the-art Single Buoy Mooring (SBM) terminal,
a POL handling terminal, pipelines, and road and rail links.
The port has a capacity to handle 20 million tonnes of crude
and 14 million tonnes of petro products.

- ESL has one of the largest and youngest fleet of Suezmax tankers
in the world with an average age of eight years, part of which
was provided as security for the loan.

- ESL is the second-largest Indian private sector shipping company
with a fleet of 1.39 million DWT. As the owners of six
double-hull modern Suezmax tankers, Essar is one of the largest
owners and operators of crude tankers in the world.

2000 - The Company has decided to hive off the Vadinar Port terminal
into a separate subsidiary.

- Essar Shipping has roped in the $2.3-billion Malaysia Internationa
Shipping Corp to float a 50:50 joint venture company for liquefied
natural gas transportation.

- Essar Shipping Ltd. and MISC through the joint venture company will focus
of providing sea transportation for import of LNG into India.

- Crisil has downgraded its rating assigned to company's NCDs from C to D.

- Essar Shipping has appointed Sanjay Mehta as Managing Director and Rajiv Agarwal
as chief financial officer.

- The Compay has acquired a Capesize bulk carrier of 1,37,000 DWT and eleven Mini
Bulk Carriers. The Mini Bulk Carriers were with the company on Bare Boat Cum Demise
basis.

2002

-Board agrees to issue 20crs equity shares to promoters on preferential basis and increase its stake from 48% to 74%.

-Converts loans from Essar Investments into equity capital and has increased the holdings of Ruia's in Essar Shipping.

-Transfers 4.22% stake in Essar Oil and 4.5% stake in Essar Steel to its subsidiary, Essar Sisco Ship management.

-Losses Rs.330 crs on account of its investments in two of its group companies, Essar Steel and Essar Oil.

-Debt Recovery Tribunal issues notice for the default of Rs.17.89 cr on the application field by IndusInd Bank.

-Prepays Rs.1360 million ICICI bank loan.

2003

-Corporate Debt Restructuring Cell approves for the Debt restructuring of Vedinar Oil Terminal Ltd, a 100% subsidiary of Essar Shipping.

-Members approve for the delisting of the company's equity shares from all stock exchange except Mumbai Stock Exchange.

-In EGM on Sept 19, Board approves the following:
Increase the authorised share capital from Rs.5105m to Rs. 15105m
Issue any financial instruments to ABB Lummus, members, promoters, strategic investors etc.

-Wins the 'Most Quality Conscious Indian Shipping Company' award from the National Maritime Day Celebrations Committee.


2004

-The Indian Coast Guard Ship (CGS) Vijaya was awarded the first National Maritime Search and Rescue Award 2003 instituted by Essar Shipping Ltd

-Essar partly insures newly acquired foreign crude carrier

2006

-Essar Shipping acquires VLCC for Rs 550 cr

2007

-Essar Shipping & Logistics orders six Mini Cape Bulk Carriers at a cost of USD 390 million

2008

- Essar Shipping Ports & Logistics Ltd has informed that the Board of Directors of the Company at its meeting held on October 31, 2008, inter alia, has approved the appointment of Mr. S V Venkatesan & Mr. Deepak Kumar Varma, as an Independent Directors of the Company.

-Company name has been changed from Essar Shipping Ltd to Essar Shipping Ports & Logistics Ltd.

2009

-Essar signs concession agreement with Paradip Port Trust for the development of Deep Draught Coal Berth
 
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