Essar Shipping Limited ("ESL", ticker 500630) today announced a plan to explore opportunities for re-organisation / consolidating the business of ESL with certain other businesses of the Essar Group to become a one-of-a-kind integrated logistics company. As part of this re-organisation exercise, the Company is exploring the option of bringing the drilling & exploration business carried on by Essar Oilfields Services Limited and several ports and terminal assets under itself. With interests in dry bulk ports and oil terminals, crude and dry bulk carriers, port to plant logistics, and oil field services, this re-organisation will enable ESL to provide end-to-end solutions to its customers.

The Board of ESL has today passed a resolution constituting a “Re-organisation Committee” and authorising it to explore the best means to effectuate the re-organisation. The Re-organisation Committee was also authorised to appoint financial advisors, legal advisors as well as independent valuers for carrying out valuations to recommend swap ratios and acquisition values for any mergers or arrangements that may be considered by the Re-organisation Committee.

In addition, the Board has passed an omnibus resolution authorising various capital raising alternatives, and to facilitate this process has appointed a “Finance Committee”. The Board is also exploring changing the name of the company.

Any re-organisation proposed by the committee(s) and any capital raised by ESL is subject to shareholder and regulatory approval. To give effect to the above, an Extraordinary General Meeting has been scheduled on 23rd February, 2008.

“The re-organisation / consolidation will aim to align all Essar Group’s logistics infrastructure related companies under one roof. We believe this will allow us to provide end to end solutions to our customers and will provide ESL shareholders a larger, balanced platform for growth. It may also help ESL create value in the ports and terminals business in future and to facilitate organic and inorganic growth in this sector.” said Mr. Shashi Ruia, Chairman, Essar Shipping Limited.

About Essar’s shipping and logistics business group:
Essar Shipping Limited (ESL)
ESL is an integrated sea logistics company with a track record of providing transportation of crude and bulk cargo for over two decades. Essar Shipping Limited currently owns 91% of Vadinar Oil Terminal Limited and 100% of Essar Logistics Limited.

Essar Oilfield Services Limited (EOSL)
EOSL offers onshore and offshore contract drilling services. It currently owns and operates a fleet of thirteen drilling rigs, including the Essar Wildcat, a third generation semi-submersible offshore rig, deployed off the East Coast of India and nine rigs are deployed in Brazil and India.

Essar Bulk Terminal Limited (EBTL)
EBTL is constructing an all weather deep draft port at Hazira capable of handling upto 105,000 dwt bulk carriers to import iron ore, pellets, coal, limestone, etc. and export finished steel products. The facilities would include a dedicated all weather channel, 550 metres long jetty, ship unloaders, storage facilities for finished steel products, conveyors for transportation of the raw materials to the stack house and a rail network.

EBTL (Salaya) Limited
EBTL (Salaya) Limited has been incorporated to set up a 11 million tonnes port facility at Salaya.

Vadinar Oil Terminal Limited (VOTL)
VOTL is a provider of crude oil and petroleum products storage and distribution services. The Company owns port and terminal facilities to handle the receipt, storage and dispatch of crude oil and petroleum products at Vadinar in Jamnagar, Gujarat which is an all weather, deep-draft port. The terminal currently has crude receiving capacity of 32 MTPA and product dispatch of 14 MTPA.

Essar Logistics Limited (ELL)
ELL is a provider of logistics services, stevedoring and ligtherage operations to various corporations in India. The Company owns material handling, lighterage and mobile equipments for efficient jetty operations and a fleet of dedicated trailers and tankers to cater to the movement of steel and petroleum products.

For more information, contact
V Krishnan, Head – Corporate Communications, Essar, India, Mumbai +91 98197 30208
Manish Kedia, Sr. Vice President, Essar, India, Mumbai at +91 98197 30092
B Ganesh Pai, General Manager, Essar, India, Mumbai at +91 98197 30225
Parikshit Kaul, Deputy General Manager, Essar, New Delhi, at +91 98735 70816
William Clutterbuck, UK: +44 207 379 5151