Essar group companies like Essar Shipping, Essar Ports, Essar Projects would diversify their operations and reduce their dependence on sister companies for business.
These companies largely cater to the sister companies and thereby rely on these firms for revenue generation.
For example, currently, Essar Projects earns around 60 percent of its revenue from group firms, but wants to eventually take external orders to 90 percent, deriving half its revenue from overseas.
Essar Projects (India) started operation by winning a contract for breakwater project from Chennai port in 1969. The Essar Group has since then diversified into shipping, manufacturing, services and retail. The group firms have until now depended heavily on work from Essar Steel, Essar Power and Essar Oil.
But in the coming years, Essar Shipping, Essar Ports may limit the business from sister companies to just 10 percent of their revenue, media reports indicate.
Essar Projects is among the top engineering, procurement and construction contractors in the country.
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