In an investor meeting, executives of mining conglomerate Vedanta Ltd announced plans to invest USD 6 billion across various businesses, including aluminium, zinc, iron ore, steel, and oil and gas. They aim to enhance annual EBITDA by at least USD 2.5 billion. The company has a robust pipeline of over 50 active projects and expansions to drive growth. These initiatives are expected to generate incremental revenue exceeding USD 6 billion and elevate EBITDA from an anticipated USD 5 billion in the current fiscal year ending March 31 to USD 6 billion in the next fiscal year, with a potential increase to USD 7.5 billion by FY27.
According to Vedanta Chairman Anil Agarwal, the company is poised to achieve significant milestones over the next 25 years. Vice Chairman Naveen Agarwal outlined the detailed plans, noting that projects currently underway aim to deliver yearly EBITDA exceeding USD 7.5 billion. He emphasized that the USD 6 billion investment across business verticals could potentially yield incremental revenues of USD 6 billion and increase yearly EBITDA by USD 2.5-3 billion.
Naveen Agarwal highlighted Vedanta’s commitment to creating additional value at all its sites, with several high-impact projects in execution mode across all businesses. These projects are expected to enhance cost leadership and significantly increase operating capacities. These initiatives are critical in driving EBITDA towards the target of USD 7.5 billion annually.
Key projects slated for immediate commissioning include a refinery expansion at the Lanjigarh Aluminium facility, expansion atCO, commissioning of the Athena and Meenakshi power plants, capacity expansion at Gamsberg Zinc facility, an increase in iron ore production, and the goal of becoming India’s largest ferro-alloys producer. Vedanta, in its presentations, has outlined ambitious growth plans, with over 40 ongoing projects aimed at spending USD 6 billion in capital expenditures.
These initiatives are expected to significantly boost EBITDA, projected to rise from an estimated USD 5 billion in the current fiscal year ending March 31 to USD 7.5 billion in FY26 (April 2025 to March 2026). The company has emphasized deleveraging as a top priority, with a USD 3 billion deleveraging plan over the next three years at its parent company, Vedanta Resources, without increasing debt levels at the India-listed firm. Currently, net debt stands at USD 13 billion and is targeted to be reduced to USD 9 billion by FY27.
The CFO, Ajay Goel, highlighted that Vedanta Limited’s cash flow pre-growth capex is estimated to be USD 3.5-4.0 billion for FY25, sufficient to cover secured debt maturities of USD 1.5 billion, with refinancing as an additional option. Additionally, parent company Vedanta Resources has successfully deleveraged its balance sheet by USD 3.5 billion over the last two years, reducing net debt to USD 6 billion and reprofiling near-term bond maturities of around USD 4 billion.
The company sees the proposed demerger of businesses as a significant value unlocking opportunity for its shareholders. Vedanta Limited, owned by billionaire Anil Agarwal, boasts a unique portfolio of assets in metals and minerals, oil and gas, traditional ferrous verticals, and power, including coal and renewable energy. The company is also venturing into the manufacturing of semiconductors and display glass. The demerger, announced on September 29, 2023, aims to create independent verticals through the demerger of underlying companies, mainly metals, power, aluminium, and oil and gas businesses.
After the demerger, Hindustan Zinc, and the display and semiconductor manufacturing units will remain with Vedanta Limited. The company believes the demerger will simplify its corporate structure and provide global investors with direct investment opportunities in dedicated pure-play companies. Chris Griffith, CEO of Vedanta Base Metal, highlighted Zinc International’s target to achieve a 1 million tonne production pipeline by 2030, up from the current 220,000 tonnes, through expansions at Black Mountain and Gamsberg mines in South Africa.
Copper India aims to create a 1 million tonne capacity for copper and gold production per annum by 2030, up from the current 260,000 tonnes, through debottlenecking the Silvassa refinery, units in UAE and Saudi Arabia, and restarting the Tuticorin unit. Vibhav Agarwal, CEO of the power business, stated that the group currently has a portfolio of 4,780 megawatts of electricity generation capacity, which is expected to generate Rs 15,000 crore of revenue and Rs 3,500 crore of EBITDA annually by FY27, compared to Rs 6,910 crore revenue and Rs 1,050 crore EBITDA in the current fiscal year.
Vedanta Limited is a leading natural resources company in India, operating in the segments of iron and steel, zinc, aluminum, and copper. With a strong focus on sustainable development, Vedanta is committed to enhancing the lives of communities around its operations through various social and environmental initiatives. The company’s diversified portfolio, coupled with its emphasis on innovation and operational excellence, has established Vedanta as a key player in the global natural resources sector.
