Vedanta Group Chairman Anil Agarwal announced a sweeping $20 billion capital expenditure plan over the next three years, targeting at least three times the current size of group businesses across aluminium, steel, power, and zinc. Speaking to ET Now, Agarwal described the current moment as the right time to be building, not consolidating, driven by what he called an 'amazing' demand-supply gap and strong raw material backing across all four verticals. The chairman emphasized that Vedanta is only getting started in its expansion journey, with the company currently paying ₹60,000 crore annually to the government exchequer and expecting this to reach ₹2 lakh crore over five years.
Steel has emerged as the new frontier for Vedanta's expansion, with Agarwal stating that 'India needs 300 million tonnes' and the company has the infrastructure and raw material backing to become a substantial standalone company. The plan involves green steel production, backed by captive coking coal and iron ore, with the company targeting 15 million tonnes production from its current 4 million tonnes capacity. Agarwal noted that demand-supply gaps are huge in each business, making this the optimal time for expansion, with the company currently employing 200,000 people directly with another million benefiting indirectly.
Aluminium remains the cornerstone of Vedanta's expansion, with Agarwal outlining plans to double output to become the largest producer globally with the lowest cost, building on current 3 million tonnes capacity targeting 6 million tonnes in 3-3.5 years. The company has Hindustan Zinc as the largest zinc producer in India while expanding into nickel and manganese production, with Agarwal noting that Hindustan Zinc is more than just zinc. The company also targets 20,000 MW power capacity and continues as the largest zinc producer in India.
Vedanta's debt reduction story continues with significant progress, with Agarwal reporting that Vedanta Resources' debt had fallen from $12 billion to around $5 billion, with further reduction expected at the holding company level. The debt distribution across the group shows Vedanta Limited at the top is largely debt-free, the steel company carries no debt, power has a small amount, and aluminium and Hindustan Zinc carry manageable levels. Agarwal stated that 'the debt is very comfortable' and emphasized that the company will use internal resources first before seeking external funding for international expansion.
Vedanta shares surged over 2% as the company's four demerged entities made their stock market debut on Monday, marking a significant milestone in one of India's largest corporate restructuring exercises. According to The Economic Times, the listing follows a special pre-open session on BSE and NSE, with the demerger involving four new entities spinning off from Vedanta. Eligible shareholders received shares in each of the four entities for every Vedanta Ltd share held as of the May 1 record date, unlocking value across the conglomerate's diverse operations in aluminium, oil & gas, power, and iron & steel. The overarching message from Agarwal was one of structured confidence, with four companies, four separate management teams, and a single conviction that India's resource and infrastructure story is still in its earliest chapters.
