Vedanta Group stocks remained under pressure on Tuesday, September 1, extending their decline from Monday's session amid broader market volatility. According to reports from The Economic Times, Vedanta was down 1.46% at ₹274.15 on the NSE, while Vedanta Iron and Steel was down around 3.8% at ₹35.44 on the NSE. Vedanta Power shares were also trading 1.62% lower at ₹34.61 apiece on the NSE, and Hindustan Zinc was down 0.09% at ₹594.90. Around 2:12 PM, shares of Vedanta Oil and Gas traded 2.82% lower at ₹37.62 apiece on the NSE, while Vedanta Aluminium Metal was down 0.29% at ₹433.90. The sell-off is attributed to a reassessment in Federal Reserve policy, with Andrew Lilley, chief rates strategist for Barrenjoey Investment Bank, stating that "I believe the Fed will hike in September, and that it is the beginning of a three-rate cycle minimum."
Zinc prices have reached a four-year high amid growing supply concerns, creating a positive backdrop for Vedanta's zinc operations. According to market reports, the surge in zinc prices reflects tightening global supply conditions and increased industrial demand. This development aligns with Vedanta Chairman Anil Agarwal's ambitious growth roadmap unveiled at the company's 61st Annual General Meeting, where he announced plans to nearly treble zinc and lead production to 3 million tonnes by 2031. The chairman also revealed that ferrochrome capacity would be ramped up to 5 lakh tonnes by FY28 and nickel output increased to 60,000 tonnes.
According to reports from The Economic Times, Vedanta Aluminium would double its capacity to 60 lakh tonnes per year within three years and aims to operate at the lowest cost globally. Vedanta Oil & Gas will target production of 5 lakh barrels per day and invest five billion dollars over the next three to five years to achieve the goal. Vedanta Iron & Steel will expand capacity from four million tonnes to 15 million tonnes annually with an emphasis on green and specialty steel. Vedanta Power has a roadmap to expand to 20,000 MW and will also enter nuclear power, with the company's future built on three Ps - Produce More, Partner Better and Purpose Beyond Profit.
As reported by The Economic Times, reflecting on the successful completion of Vedanta's demerger, Chairman Anil Agarwal mentioned that each of the group's five pure-play entities -- Vedanta Ltd, Vedanta Aluminium Metal Ltd, Vedanta Oil and Gas Ltd, Vedanta Iron and Steel Ltd, and Vedanta Power Ltd -- has the potential to become a $100-billion company. The chairman unveiled an ambitious vision for 'Vedanta Unlimited' at the AGM, committing $5 billion in investments to expand its oil and gas business and accelerating exploration of critical and strategic minerals including lithium and rare earths. Despite current market volatility, the company's long-term expansion plans remain intact, with the zinc price surge providing additional support for the group's zinc operations.
