Vedanta investments: Billionaire-Anil Agarwal-led mining conglomerate Vedanta Ltd has announced plans to invest a staggering $6 billion across various business verticals. This ambitious investment drive aims to bolster the company's annual EBITDA by at least $2.5 billion, positioning it for substantial growth and value creation in the coming years.

Expansive investment pipeline

At an investor meeting, Vedanta executives unveiled an expansive investment pipeline comprising over 50 active projects and expansions across multiple sectors, including aluminium, zinc, iron ore, steel, and oil and gas. These initiatives are projected to generate incremental revenue exceeding $6 billion, propelling the company's EBITDA from an anticipated $5 billion in the current fiscal year to $7.5 billion by FY27.

Vedanta Chairman, Anil Agarwal, expressed confidence in the company's trajectory, asserting that it is poised to achieve significant milestones over the next 25 years. Echoing his sentiments, Vice Chairman Naveen Agarwal elaborated on the strategic plans aimed at enhancing operational efficiency and driving sustained value creation.

Key projects

Among the noteworthy projects earmarked for immediate commissioning are the expansion of the Lanjigarh Aluminium refinery, capacity enhancements at the Gamsberg Zinc facility, and significant strides in power generation capacity. These initiatives underscore Vedanta's commitment to operational excellence and market leadership across its diverse business segments.

Vedanta also outlined a comprehensive strategy to reduce net debt levels to $9 billion by FY27. The company's Chief Financial Officer, Ajay Goel, outlined plans for deleveraging initiatives, including internal accruals and strategic actions such as asset monetisation, to fortify the company's financial position and drive sustainable growth.

Value unlocking through demerger

Vedanta's proposed demerger of businesses is poised to unlock substantial value for shareholders, facilitating greater focus and agility across independent verticals. The move underscores the company's commitment to enhancing shareholder value and streamlining its corporate structure to capitalise on emerging opportunities.

(With PTI inputs.)