Anil Agarwal bets $20 billion on aluminium, steel, and zinc, and says Vedanta is only getting started

Anil Agarwal, Chairman of the Vedanta Group, has outlined a sweeping $20 billion capital expenditure plan across aluminium, steel, power, and zinc over the next three years, and described the current moment as the right time to be building, not consolidating.

Speaking to ET Now, Agarwal said he expects the group's businesses to be at least three times their current size within three to four years, driven by what he called an "amazing" demand-supply gap and strong raw material backing across all four verticals.

Steel: the new frontier

Of all the businesses Agarwal spoke about, it was steel that drew his most emphatic enthusiasm. Vedanta is currently producing 4 million tonnes and has announced a minimum target of 15 million tonnes, with work already underway to scale up. The company's steel operations sit in the belt between Bokaro and Tata Steel's heartland, and crucially, Agarwal says it is entirely backed by captive raw materials.


"Everybody tells me why are you getting into steel. It is the most important. India needs 300 million tonnes. I have the infrastructure. I have the raw material, says" Agarwal.

The plan is for green steel, backed by captive coking coal and iron ore, to become a substantial standalone company under its own dedicated management team.

Hindustan Zinc: More than just zinc

Agarwal was equally bullish on Hindustan Zinc, in which Vedanta holds a 65% stake. He said silver, a by-product of zinc mining, is on its way to becoming one of the company's best revenue and profit generators on its own. Beyond that, Hindustan Zinc is set to produce 1.5 million tonnes of fertiliser, operate what Agarwal described as the world's biggest recycling plant for its residual materials, and target 2 million tonnes of zinc production. He also referenced an 80% ownership stake in a separate zinc producer, adding another layer to the group's metals portfolio.

Aluminium: $20 billion and a 6 million tonne target

On aluminium, Agarwal said the combined capex of $20 billion over three years covers a 6 million tonne aluminium capacity target alongside steel, power, and zinc expansion. With a group EBITDA of $10 billion that he expects to grow, he argued that funding will not be a constraint, and that each company should be able to self-finance its own growth plan, with debt and equity available as supplementary tools if needed.

Debt: from $12 billion to $5 billion, and falling

On the question of group-level debt, currently around $5 billion at the top, with the Indian arm carrying approximately Rs 53,000–54,000 crore on a net basis, Agarwal pushed back on the notion that it represents a burden. He pointed out that the group had reduced debt from $12 billion to $5 billion, while also delivering shareholder returns through dividends and share price appreciation.

He broke down the debt distribution across the group: Vedanta Limited at the top is largely debt-free, the steel company carries no debt, power has a small amount, and aluminium and Hindustan Zinc carry manageable levels. "The debt is very comfortable," he said, adding that further reduction at the holding company level is expected soon.

The overarching message from Agarwal was one of structured confidence, four companies, four separate management teams, and a single conviction that India's resource and infrastructure story is still in its earliest chapters.