"Essar sets sights on a ports comeback, targeting a massive 400–500 mt capacity by 2047."

The Essar Group is looking to rebuild its ports business after divesting a large portion of its assets to Rosneft-owned Nayara Energy and ArcelorMittal Nippon Steel (AMNS) as part of a broader deleveraging exercise a few years ago, according to the head of its ports vertical.

Ashish Rajgarhia, Executive Director of Essar Ports Ltd, said the group had a strong foundation in the ports sector but exited several assets to reduce debt. “We had a good foundation in the port sector, which we had to part with because of the strategic call by management to deleverage the group. It was the need of the hour as part of the larger objective.

He said the group has since completed its deleveraging and is now debt-free, allowing it to refocus on growth. “We have deleveraged and we are completely debt-free today. We want to build back. We understand the sector; there is so much room for growth given the limited number of players,” he said.

Rajgarhia described ports as a “sunrise sector” for India, citing the government’s Viksit Bharat vision. India currently has port capacity of about 2.7–2.8 billion tonnes, which is expected to rise to 10 billion tonnes by 2047. In comparison, China has an operational port capacity of around 18 billion tonnes. India’s container throughput stands at about 24 million TEUs, far lower than China’s 300 million TEUs, highlighting the sector’s growth potential, he said.

He also pointed to the limited number of private players in the sector, noting that while there are 12 major ports owned by the Central government, only a few large private operators are active, creating a significant opportunity.

Essar Ports has set a target of capturing about 5 per cent of India’s projected port capacity by 2047, translating to around 400–500 million tonnes. To achieve this, the company plans to pursue a mix of organic expansion and inorganic opportunities, Rajgarhia said.