“By the end of this fiscal we are confident of the successful demerger” says Anil Agarwal

~Hindustan Zinc can be a $100 billion company, says Vedanta Chairman Anil Agarwal~

Bengaluru, June 24, 2024: Vedanta Group, a globally diversified natural resources company, today shared its strategic vision and growth plans, emphasizing its commitment to environmental sustainability and the expansion of its core businesses.

Chairman, Anil Agarwal emphasized on the group’s position as the largest integrated aluminum producer, with a capacity of 3 million tons, and its plans to produce 70 million tons of iron ore. He also highlighted Vedanta’s aggressive expansion in the oil and gas sector, with both offshore and onshore exploration projects in the Northeast of India, particularly in Digboi and Assam.

Mr Agarwal also exuded confidence on the successful demerger of the group.

Mr. Anil Agarwal stated, “We are very confident in our position as the largest integrated aluminum producer and are excited about our oil and gas exploration projects in the Northeast of India.” He also emphasized the company’s commitment to being “the most environmentally friendly” in its operations.

He has expressed confidence in the company’s “trophy assets,” which are set to drive future growth.

Mr. Agarwal expressed optimism about the demerger process, saying, “It’s all done, we have got the majority of lender approval… by the end of this fiscal year we could have the unit separated into six listed entities of the Vedanta group.”

He also shed light on the steel business, confirming that Vedanta is in advanced negotiations with potential buyers for its steel asset in Jharkhand. The company is targeting a valuation of $1.2 billion per million tons for its 3.5 million-ton steel plant, leveraging the asset’s strategic location and the significant demand-supply gap in India’s steel market.

Regarding the zinc business, Mr. Agarwal highlighted the potential for significant growth, stating, “We are the only major producer of zinc in the world… Hindustan Zinc can be a $100 billion company.”

On the financial front, Mr. Agarwal assured stakeholders that Vedanta Limited’s debt levels are manageable, with the total debt being less than 1.5 times the company’s profit. He also mentioned that there are no plans to dilute equity in Konkola Copper Mines (KCM) and that the company’s cash flow and dividends are sufficient to manage debt payments.

Lastly, Mr. Agarwal confirmed that Vedanta Resources’ holding in Vedanta Limited has decreased to around 61.5% but that the company is comfortable with its current stake and has no immediate plans to further reduce its holding or dilute equity.

Vedanta Group’s strategic vision, as articulated by Chairman Anil Agarwal, is clear: to create value for shareholders, contribute to India’s economic growth, and maintain a strong focus on environmental responsibility and sustainable practices.