New Delhi: Vedanta, a prominent mining conglomerate, has unveiled plans to inject over $6 billion (₹50,000 crore) across various sectors such as aluminium, zinc, iron ore, steel, and oil and gas, with the aim of boosting annual EBITDA by at least $2.5 billion (₹20,750 crore), as per reports.
The company has disclosed a comprehensive pipeline comprising more than 50 active projects and expansions geared towards fostering growth. These initiatives are anticipated to generate incremental revenue exceeding $6 billion. Additionally, Vedanta forecasts an uptick in EBITDA from an estimated $5 billion in the ongoing fiscal year ending March 31 to $6 billion in the subsequent fiscal year, potentially reaching up to $7.5 billion by FY27.
Anil Agarwal, Chairman of Vedanta, expressed confidence in the company’s trajectory over the next 25 years. Naveen Agarwal, Vice Chairman, provided insights into the strategic initiatives during the presentation, emphasizing ongoing projects aimed at achieving a yearly EBITDA of $7.5 billion.
Vedanta highlighted several significant projects set for immediate commissioning, including expanding the Lanjigarh Aluminium facility’s refinery, enlarging BALCO’s capacity, launching power plants, increasing zinc production, ramping up iron ore production, and becoming India’s largest ferroalloys producer.
The company reiterated its commitment to deleveraging, outlining plans to reduce debt by $3 billion over the next three years while maintaining stable debt levels. CFO Ajay Goel outlined the aim of decreasing net debt to $9 billion by FY27. Vedanta Limited’s cash flow pre-growth capex is estimated to be sufficient for secured debt maturities, with refinancing as an option.
The presentation positioned Vedanta as an attractive investment opportunity, citing its impressive track record of achieving a 15% Compound Annual Growth Rate (CAGR) in EBITDA over the past two decades. The proposed demerger of its businesses is highlighted as a move promising substantial value unlocking for shareholders.
Vedanta’s CEO, Chris Griffith, outlined plans for Zinc International and Copper India to ramp up production significantly by 2030. Vibhav Agarwal, CEO of the power business, highlighted projections for robust revenue and EBITDA growth by FY27.
