Vedanta to invest $10 bn on expanding business
NEW DELHI: Metals and mining conglomerate Vedanta will invest $10 billion in 3-4 years on expanding business across verticals, company's Chairman Anil Agarwal said.
He also said the merger of Cairn India and Hindustan Zinc with Vedanta is likely to be completed in the current quarter, creating India's largest diversified natural resources firm that will compete with the likes of BHP Billiton and Vale SA. "We have the potential to spend $10 billion over a period of five years; we are looking at 3,50,000 barrel of oil... to have 100,000 barrel equivalent to gas. We are looking to integrate 3 million tonnes capacity for the aluminium," the mining baron said. "We are looking to have over a million tonnes of zinc and lead, 1,000 tonnes of silver. We are looking to put up a fertiliser plant for DAP for a million tonnes in Rajasthan," he added.
Vedanta Resources subsidiary Cairn produces over 2,00,000 barrels oil and oil equivalents per day and plans to enhance its production by another 1,00,000 barrels of oil equivalent per day.
Its operations span across India, Sri Lanka, Zambia, Namibia, South Africa, Liberia, Ireland and Australia.
About the proposed merger of cash-rich Cairn India and Hindustan Zinc into the flagship Vedanta Group to create a global natural resources giant, Agarwal said that in all likelihood the process will be completed this quarter.
"The process is going on. It should be over this quarter. It takes time...some clearance here some clearance there... but it is almost through. Sharehold- ers have given approval, SEBI has given approval... It should be over in this quarter only," Agarwal said.
The merger will mark a significant step towards achieving group's long-term vision of a simplified group structure and creation of long-term sustainable value, Agarwal said.
The average gross production of Cairn India Ltd, one of the largest independent oil and gas companies, produced 203,703 barrels of oil equivalent per day (boepd) in 201516. In June 2015, Vedanta Ltd (formerly known as Sesa Sterlite Ltd/sesa Goa Ltd) had announced its proposed merger with Cairn India.