Anil Agarwal, Vedanta Group Chairman, sees import of minerals, metals and energy tripling from the current $350 billion as the economy grows at a faster rate and the investment opportunity in these sectors could become $1 trillion.
Addressing shareholders at the Vedanta annual general meeting, he said 50 per cent of the country’s imports worth over $350 billion are minerals and metals, including oil and gas. This will double and triple as the economy grows at a fast rate and these sectors are a $1-trillion opportunity, he said.
About 70 per cent of Vedanta’s topline comes from the critical minerals of the future and this is the highest proportion compared with the peer group, he said.
While public conversation often focuses on lithium, cobalt and nickel, in reality, copper, aluminium, zinc and silver are all equally fundamental to the sunrise sectors of the new economy, he added.
Demerger process
The company is in the process of splitting its business in six distinct entities and listing on the exchange separately.
“We are going ahead with the demerger of our businesses, which will lead to the creation of six strong companies and unlock massive value,” he said.
Each demerged entity will chart their own course but follow Vedanta’s core values, said Agarwal
Expansion plans
Vedanta has thus far invested over $35 billion in India and contributes about 1.4 per cent of India’s GDP, and remains committed to growth. On the expansion plans, he said the group will focus on the new 1.5-mtpa alumina refinery in Lanjigarh, operationalise the Bicholim mine in Goa, and commence production at Jaya oilfield in Gujarat this year.
The acquisition of Athena and Meenakshi Power Plants last fiscal will double merchant power capacity to 5 GW, he said.