Vedanta’s Big Leap: Anil Agarwal Announces Game-Changing Demerger to Transform into Asset Owner

Vedanta’s Chairman, Anil Agarwal, announced that the company is moving from being asset managers to asset owners as part of a major demerger plan. This change will split Vedanta’s different business units, which handle over 15 commodities, into independent companies. These new companies will focus on aluminium, oil and gas, power, steel, ferrous materials, and base metals. Vedanta’s zinc and other new businesses will continue under the main company, Vedanta Ltd.

Alignment with Expansion Plans

Agarwal explained that this shift aligns with the company’s strategy to expand and strengthen its asset base. Vedanta aims to become a global leader in each of its business sectors. The demerger process, which has already been approved by 75% of its secured creditors, is expected to be completed by the end of this financial year, pending final approval from the National Company Law Tribunal (NCLT).

Simplifying Corporate Structure

The goal of the demerger is to simplify Vedanta’s corporate structure and offer investors direct access to specific business areas that are linked to India’s economic growth. The company is also investing USD 1.9 billion from FY24 onwards to further grow its businesses.

Strong Financial Performance

In financial performance, Vedanta posted a consolidated net profit of ₹3,606 crore for the quarter ending June 30, 2024, marking a 36.5% increase compared to ₹2,640 crore in the same period last year. The company’s income also grew to ₹36,698 crore, up from ₹34,279 crore a year ago.

Global Operations

Vedanta Ltd is a subsidiary of Vedanta Resources and operates in several sectors, including oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminium, and power, with operations spread across India, South Africa, and Namibia.