Vedanta’s dream has just begun, will invest $6 bn: Agarwal
Working on creating a natural resources giant anchored in India, Vedanta’s dream has only just begun and it will invest $6-7 billion on expanding overall capacity in three to four years, metals and mining baron Anil Agarwal said.
Vedanta is the world’s sixthlargest diversified natural resources powerhouse post CairnVedanta merger, achieving market capitalisation of $14 billion.
“Our dream has just begun. Faring very well financially during the last fiscal, we are looking for at least 60 per cent capacity addition in our businesses in three to four years,” Vedanta Resources Group Chairman Anil Agarwal told PTI. “For expanding capacity by 60 per cent across segments, on a pro-rata basis we will be spending about $6-7 billion,” said Agarwal, who is also chairman emeritus, Vedanta.
With the government’s thrust on natural resources, the future is promising, he said, while adding there should be more natural resources companies anchored in India. India could be a natural resources powerhouse with its abundant natural wealth, he said. “We are far behind on exploration front. Our exploration of natural wealth is minuscule when we compare it with advanced nations like the US and Australia,” he said, adding that government thrust could change the scenario.
The company is aspiring to produce 50 per cent of India’s oil production as “it wants to cut on huge import bills”, he said.
Vedanta is also looking at 1.2 million tonnes (mt) of zinc capacity and wants to take it to 1.5 mt later, he said. It wants to double output of silver to 1,000 tonnes. “We are looking at 3,50,000 barrel of oil and to have 1,00,000 barrel equivalent to gas,” he said, adding that for aluminium, the company was looking at 3 mt capacity.
Tapping the tremendous possibilities of growth in demand for zinc, aluminium and copper, Vedanta managed to be the market leaders for India’s zinc industry, primary aluminium market, and refined copper with market shares of 72 per cent, 40 per cent and 35 per cent, respectively.
Also, it is India’s largest private sector iron ore exporter and operator of 26 per cent of India’s crude oil production.
“FOR EXPANDING CAPACITY BY 60 PER CENT ACROSS SEGMENTS, ON A PRO-RATA BASIS WE WILL BE SPENDING ABOUT $6-7 BILLION”