25 March 2024 – In a strategic move, Vedanta Ltd has revealed plans to inject USD 6 billion across multiple sectors, including aluminium, zinc, iron ore, steel, and oil and gas. The objective is to bolster annual earnings and streamline operations through the creation of independent business verticals.
During a recent investor meeting, Vedanta’s Chairman, Anil Agarwal, along with Vice Chairman, Naveen Agarwal, outlined a comprehensive strategy aimed at achieving an annual EBITDA of USD 7.5 billion. The proposed investment of USD 6 billion will be allocated to various projects, such as refinery expansions and capacity enhancements, with the anticipation of generating incremental revenues of USD 6 billion. These initiatives are expected to contribute an additional yearly EBITDA potential of USD 2.5-3 billion, solidifying Vedanta’s position in the market.
Furthermore, Vedanta remains committed to financial optimization, with a keen focus on reducing net debt to USD 9 billion by FY27 from the current USD 13 billion. The CFO, Ajay Goel, underscored a USD 3 billion deleveraging strategy over the next three years, aiming to maintain debt levels without compromise. The company also aims to unlock shareholder value through a proposed demerger of businesses, paving the way for independent verticals and enhancing operational efficiency.
