Vedanta Pushes Forward with Demerger, Creating Six Independent Companies: Chairman Anil Agarwal

Vedanta Chairman Anil Agarwal announced on Wednesday that the company is proceeding with its plan to split into six separate companies, a move that is expected to unlock significant value. The company has received approval from most of its creditors for this proposed demerger, marking a crucial step in its transformation.

Creation of Six Strong Companies

During the 59th Annual General Meeting, Agarwal stated, “We are moving ahead with the demerger of our businesses, which will create six strong companies, each operating independently as Vedanta. This will unlock massive value.”

Each new entity will operate independently, adhering to Vedanta’s core values and innovative spirit. “As we stand on the brink of an amazing transformation, our enthusiasm is high,” Agarwal said, emphasizing that the demerger will accelerate the company’s progress.

The chairman explained that each new company will have more freedom in terms of capital allocation and growth strategies, giving investors the option to invest in the industries they prefer, thus broadening the investor base for Vedanta assets. “For every Vedanta Ltd share that shareholders currently own, they will receive one share of each of the five new companies,” he added.

Commitment to Sustainable Production

Currently, 70% of Vedanta’s revenue comes from critical future minerals, and the company is committed to producing these metals and minerals sustainably. Agarwal highlighted that Vedanta has invested over $35 billion in India and remains dedicated to growth. “This year, we focused on rapid expansion, including a 1.5 MTPA expansion at our alumina refinery in Lanjigarh, the operationalization of the Bicholim mine in Goa, and the commencement of production at our Jaya oilfield in Gujarat. We also acquired the Athena and Meenakshi power plants, doubling our merchant power capacity to 5 GW,” he said.

Future Growth Projects

Vedanta currently has over 50 projects underway with high potential for increasing volume, business integration, and enhancing the range of value-added products. “Our investment in growth projects is significant, amounting to about $8 billion. These include our aluminum smelter, alumina refinery, a copper smelter in Saudi Arabia, new oil and gas blocks, and expansion of our steel and iron ore businesses. These projects are already contributing to our top and bottom lines. With this investment and the efforts of our team, we are well-positioned to meet our EBITDA target of $10 billion in the near future,” Agarwal explained.

In September last year, Vedanta announced the demerger of its metals, power, aluminum, and oil and gas businesses to unlock potential value. This will result in six independent companies: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Limited.