Case Study: Essar Group achieves USD 1B e‑sourced spend and up to 30% faster sourcing with SAP Ariba

Enabling Automation Detailed Process Visibility and Integrated Knowledge Framework to Sourcing Process

Essar Group, a multinational conglomerate in steel, oil & gas, power and more, faced a major procurement challenge as it pursued an aggressive expansion with an expected annual project spend of USD 3 billion. With 300+ procurement professionals spread across businesses and geographies, more than 30,000 global suppliers, limited cross-vertical spend visibility, and time-consuming manual negotiations that lacked consistency and transparency, the company needed standardized processes, stronger governance and scalable procurement operations.

Essar chartered Aegis Limited to create a centralized procurement shared service and partnered with Ariba to deploy Ariba Sourcing and Ariba Category Management, streamlining people, processes and technology. The initiative e-sourced over USD 1 billion in its first year, reduced sourcing cycle time by up to 30%, delivered complete transparency and consistency in sourcing, improved supplier experience, and embedded best practices such as total cost of ownership and lotting strategy.

Essar Group

Shyam Bagrodia

Group President - Procurement