Vedanta lines up USD 25 bn investment over 3 years for organic growth; eyes USD 50 bn revenue

Kolkata: The Vedanta Group has lined up USD 25 billion in investments over the next three years to expand capacities across its existing businesses through organic growth and brownfield expansions, a top company official said.

Vedanta founder and chairman Anil Agarwal, who was in the city on Wednesday, said the conglomerate would focus on its existing assets for growth, while remaining open to acquiring public sector assets if opportunities arise.

"Current capex plans are for organic growth in aluminium, copper, zinc, oil and gas. All will be brownfield expansions," he said.


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"We are going to invest... around USD 25 billion," Agarwal said.

The capital expenditure would also support Vedanta's ambition to become one of the world's largest mining companies in critical metals, and emerge as a leading silver producer within three to four years, he said.

The group, which comprises 10 major companies, aims to grow its overall business from USD 30 billion to USD 50 billion within three years, Agarwal said.

He asserted that the group's debt levels were comfortable, and the ongoing capital expenditure could be funded through internal cash generation.

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Agarwal said the top-tier holding company, Vedanta Resources, had borrowings of about USD 5 billion against assets valued at over USD 100 billion.

"Dividends from majority-owned shares and strong cash flows from subsidiaries are more than enough to service this debt," he said.

Describing renewable energy as a major business for the group, Agarwal said Vedanta currently has around 5,000-MW capacity, and plans to add another 5,000 MW over the next one to one-and-a-half years.

Agarwal said the group prioritised value over profit, and had an equal focus on natural resources and technology infrastructure.