New Delhi: Vedanta Chairman Anil Agarwal on Wednesday said the company is going ahead with the proposed demerger of its businesses that will lead to the formation of six companies and unlocking massive value.
The company has received approval from a majority of its creditors for a proposed business spin-off, marking an important step in the company's plan to split into six independent publicly traded companies.
Addressing shareholders during the 59th Annual General Meeting, the Chairman said: "We are moving ahead with the demerger of our businesses, which will lead to the creation of six strong companies, each a Vedanta in its own right. This will unlock a huge value."
Each demerged entity, he said, will plan its own course but follow Vedanta's core values, its entrepreneurial spirit and global leadership.
"Now that we are on the verge of an astonishing transformation, our excitement is high," Agarwal said, adding that "the spin-off will accelerate our journey."
Each entity will have more independence with respect to capital allocation and its growth strategies, the chairman said, adding that investors will be free to invest in industries of their choice, broadening the overall investor base for Vedanta's assets.
"For every Vedanta Ltd share that shareholders currently hold, they will additionally receive one share in each of the five new listed companies," he said.
Today, 70 percent of Vedanta's gross revenue comes from critical minerals of the future, he said, adding that the company is committed to producing these metals and minerals sustainably.
The company, Agarwal said, had invested over $35 billion in India and remains committed to growth.
"This year, we are actively involved in rapid expansion efforts: the new 1.5 MTPA (million tonnes per annum) expansion at our alumina refinery in Lanjigarh, the commissioning of the Bicholim mine in Goa and the start of the production at our Jaya oil field in Gujarat. We also acquired Athena and Meenakshi power plants in FY24, doubling our commercial power capacity to 5 GW," he said.
To date, the company has more than 50 projects underway with high potential for increasing volume, business integration and improving the range of value-added products across all businesses.
"Our investment in growth projects is substantial and amounts to approximately $8 billion. These include our aluminum smelter, our alumina refinery, a copper smelter in Saudi Arabia, investments in new oil and gas blocks and the expansion of our steel and iron ore businesses.
"These projects have already begun to contribute to our revenue and results. With this investment and the efforts of our team, which includes more than 100 expatriates and global experts, we are well positioned to meet our EBITDA target of $10 billion in the near future," he explained.
Vedanta had announced in September last year the demerger of metals, power, aluminum and oil and gas businesses to unlock potential value. After the exercise, six independent verticals will be created: Vedanta Aluminum, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited.
The company has received approval from a majority of its creditors for a proposed business spin-off, marking an important step in the company's plan to split into six independent publicly traded companies.
Addressing shareholders during the 59th Annual General Meeting, the Chairman said: "We are moving ahead with the demerger of our businesses, which will lead to the creation of six strong companies, each a Vedanta in its own right. This will unlock a huge value."
Each demerged entity, he said, will plan its own course but follow Vedanta's core values, its entrepreneurial spirit and global leadership.
"Now that we are on the verge of an astonishing transformation, our excitement is high," Agarwal said, adding that "the spin-off will accelerate our journey."
Each entity will have more independence with respect to capital allocation and its growth strategies, the chairman said, adding that investors will be free to invest in industries of their choice, broadening the overall investor base for Vedanta's assets.
"For every Vedanta Ltd share that shareholders currently hold, they will additionally receive one share in each of the five new listed companies," he said.
Today, 70 percent of Vedanta's gross revenue comes from critical minerals of the future, he said, adding that the company is committed to producing these metals and minerals sustainably.
The company, Agarwal said, had invested over $35 billion in India and remains committed to growth.
"This year, we are actively involved in rapid expansion efforts: the new 1.5 MTPA (million tonnes per annum) expansion at our alumina refinery in Lanjigarh, the commissioning of the Bicholim mine in Goa and the start of the production at our Jaya oil field in Gujarat. We also acquired Athena and Meenakshi power plants in FY24, doubling our commercial power capacity to 5 GW," he said.
To date, the company has more than 50 projects underway with high potential for increasing volume, business integration and improving the range of value-added products across all businesses.
"Our investment in growth projects is substantial and amounts to approximately $8 billion. These include our aluminum smelter, our alumina refinery, a copper smelter in Saudi Arabia, investments in new oil and gas blocks and the expansion of our steel and iron ore businesses.
"These projects have already begun to contribute to our revenue and results. With this investment and the efforts of our team, which includes more than 100 expatriates and global experts, we are well positioned to meet our EBITDA target of $10 billion in the near future," he explained.
Vedanta had announced in September last year the demerger of metals, power, aluminum and oil and gas businesses to unlock potential value. After the exercise, six independent verticals will be created: Vedanta Aluminum, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited.
