Vedanta Ready For Mega Demerger, 'Josh Is High', Says Anil Agarwal

Vedanta Ltd. Chairman Anil Agarwal announced the company's commitment to proceeding with the demerger of its businesses.

The strategic move aims to create six distinct firms, each poised to embody Vedanta's core values and pursue independent paths while maintaining its entrepreneurial spirit and global leadership, the mining magnate said at the company's 59th annual general meeting.

Agarwal emphasised that this restructuring will unlock significant value for shareholders.

The company has secured approvals from a majority of its creditors for the proposed demerger of its businesses, marking a crucial milestone in its strategy to divide into six separate listed entities.

"As we stand on the brink of an amazing transformation, our josh is high," Agarwal said, adding, "The demerger will lend speed to our journey".

Each entity will have more independence with regard to capital allocation and their growth strategies, the chairman said. Investors will have the freedom to invest in the industries of their choice, broadening the overall investor base for Vedanta assets, according to him.

The business tycoon said that currently, 70% of Vedanta's revenue is derived from critical minerals of the future, and highlighted the company's dedication to sustainable production of these metals and minerals.

The company, Agarwal said, had invested over $35 billion in India and remains committed to growth.

"This year, we actively engaged in rapid expansion efforts—the new 1.5 MTPA (million tonne per annum) expansion at our alumina refinery in Lanjigarh, operationalising the Bicholim mine in Goa, commencing production at our Jaya oilfield in Gujarat. We also acquired the Athena and Meenakshi power plants in FY24, doubling our merchant power capacity to 5 GW," he said.

As of now, the company has over 50 projects under execution, with high potential for increasing volume, business integration, and enhancing the range of value-added products across businesses.

"Our investment in growth projects is substantial, amounting to approximately $8 billion. These include our aluminium smelter, our alumina refinery, a copper smelter in Saudi Arabia, investment in new oil and gas blocks, and expansion of our steel and iron ore businesses," Agarwal said.

"These projects have already begun to contribute to our top and bottom lines. With this investment and the efforts of our team, which includes over 100 expatriates and global experts, we are well-positioned to meet our Ebitda target of $10 billion in the near future," he said.

Vedanta had in September last year announced the demerger of metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals—Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Ltd.—will be created.

(With inputs from PTI)