Vedanta Aluminium Metal Ltd (VAML) has announced ambitious plans to double its production capacity to 60 lakh tonnes per annum following its successful listing on BSE and NSE. The company, which officially commenced trading on June 15, 2026, currently operates with a production capacity of 30 lakh tonnes per annum. According to the company's latest statement, with its vision to double existing capacity and deep backward integration, VAML is positioned to achieve among the lowest costs of production globally while serving demand across key global markets. The company is poised to emerge as the largest aluminium producer across the US, Europe, the Middle East, Australia, and Africa, leveraging its strategic assets and captive resources. The expansion comes as the company seeks to meet rising demand from infra, automotive and electrification sectors.
Vedanta Aluminium operates one of the world's largest alumina refineries at Lanjigarh and one of the world's largest aluminium smelters at Jharsuguda in Odisha, along with the country's iconic aluminium producer Bharat Aluminium Company Limited (BALCO) at Korba in Chhattisgarh. The company maintains captive bauxite and coal resources and nearly 4.5 GW of captive power generation capacity, supported by an expanding downstream manufacturing ecosystem. Vedanta Aluminium currently contributes 50% of the country's aluminium production and has developed a diverse customer base across over 60 countries worldwide. The company's strategic assets include Hindustan Zinc identified as the world's largest integrated zinc producer, Zinc International scaling operations from 0.3 mtpa to 1 mtpa by decade-end, Sterlite Copper serving approximately 35% of India's copper market, and Nicomet as India's only nickel producer.
According to estimates by Nuvama Institutional Equities, Vedanta Aluminium Metal is likely to be upgraded to the large-cap category in AMFI's H2 CY26 semi-annual reshuffle, while Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel may be classified as smallcaps after the demerger. The demerged entities were listed on June 15, 2026, with Vedanta Aluminium Metal debuting at ₹527 per share, Vedanta Power at ₹41.30, Vedanta Iron & Steel at ₹22, and Vedanta Oil & Gas at ₹39. Based on current market caps, Vedanta Aluminium has a market cap of ₹1.84 lakh crore, while Vedanta Power stands at ₹16,091 crore, Vedanta Oil & Gas has a market cap of ₹13,765 crore, and Vedanta Iron & Steel is valued at ₹8,646 crore. The Anil Agarwal-led group announced in April that each eligible shareholder will receive one share in each of the four companies for every share held in Vedanta on the record date, marking one of the biggest corporate restructurings in India's metals and mining space.
AMFI may raise the large-cap cut-off to approximately ₹1.07 lakh crore (compared to ₹1.05 lakh crore as of December 2025) and set the mid-cap threshold at around ₹32,800 crore (compared to ₹34,800 crore in December 2025), based on prevailing valuations. The cut-off period spans January 1, 2026, to June 30, 2026, with the categorisation taking effect from August 1, 2026. The change in categorisation does not lead to incremental inflows or outflows, though active mutual fund managers keep track of the list while taking fresh positions or adjusting holdings across different scheme categories. The listing marks a major milestone in the company's evolution, creating a focused, pure-play aluminium business with enhanced strategic flexibility and stronger long-term growth visibility.
The categorisation serves as a reference framework for fund managers, with the official list expected to be announced in the first week of July. This represents a significant reshuffling of market segments based on current market capitalisations and the semi-annual review process. Active mutual fund managers closely monitor the categorisation list when taking fresh positions or adjusting holdings across scheme categories, though changes do not trigger incremental inflows or outflows. The current market cap data shows that residual Vedanta Limited's market cap stood at ₹1,21,000 crore, while Vedanta Aluminium Metal alone commanded ₹2,06,000 crore, emerging as the single largest entity by value. Dozens of stocks are seen as new entrants to the smallcap list, including Bharat Coking Coal, Fractal Analytics, CMPDI, Clean Max Enviro, Shadowfax Tech and Amagi Media Labs, among others. Vedanta has outlined its strategic evolution into a focused critical minerals and strategic metals company following its recent corporate demerger, with the company retaining some of the group's most strategically important assets across zinc, silver, copper, ferrochrome, nickel, and critical minerals.
