The proposal to split up VedantaThe company’s diverse verticals, representing more than 15 commodities, will take it from an asset manager to an asset owner, said Chairman Anil Agarwal.
The proposed demerger will create stand-alone companies housing aluminium, oil and gas, power, steel and ferrous materials, and base metals businesses. The existing zinc businesses and the new incubated businesses will remain under the control of Vedanta Ltd.
“Our expansion efforts are aligned with the transformation of our business model. The upcoming demerger of our various verticals representing over 15 commodities will enable us to transition from asset managers to asset owners,” Agarwal said in a recent report.
As the company goes through the transition phase, Vedanta is focusing on consolidating and strengthening its asset base to emerge as a global leader in each of its verticals, the Chairman said.
Diversified natural resources company Vedanta Ltd has filed the demerger plan with the National Company Law Tribunal (NCLT) after receiving approval from lenders and is hopeful of completing the process by the end of this fiscal year.
Vedanta has received approval from 75 per cent of secured creditors for the proposed demerger of its businesses. The demerger will help simplify the company’s corporate structure by creating separate businesses. It will also offer global investors direct investment opportunities in pure play companies linked to the country’s impressive growth.
Beginning in FY24, the company will invest $1.9 billion as capital expenditure for growth across its businesses.
Vedanta reported a 36.5 percent increase in consolidated net profit in ₹3,606 crore for the quarter ended June 30, 2024, due to improved margins and robust cost reduction across operations.
The company had recorded a net profit of ₹2,640 crore in the same period of the previous year. Consolidated revenues in the April-June period increased to Rs. ₹36,698 crores more ₹34,279 crore in the same period last year.
Vedanta Ltd, a subsidiary of Vedanta Resources, is a diversified global natural resources company with operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminium and power in India, South Africa and Namibia.
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