Diversified resources major Vedanta Ltd. plans to spend as much as ₹55,000 crore ($8 billion) in the medium term to boost output across its businesses, chairman Navin Agarwal informed the shareholders.
Addressing the company’s 54th annual general meeting (AGM) on Thursday, he said the company planned to invest ₹25,000 crore in the zinc business, ₹20,000 crore in oil and gas, and ₹10,000 crore in the aluminium business over the next three years.
“Looking at the medium term, our plans include a total capital investment of ₹55,000 crore to increase production by about 50% across our businesses which we expect to fund from internal cash flows,” said Mr. Agarwal.
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On the energy business, Mr. Agarwal said, “India currently imports around 80% of its oil and gas requirements, amounting to $150 billion. As India’s largest private sector oil and gas producer, the company aims to double its current contribution of 27% of the nation’s production.
“The company is now, also, the largest private acreage holder in the country with the acquisition of 53 new blocks under the new licensing policy.”
One of India’s largest aluminium producers, Vedanta plans to enhance production capacity by 50% to produce three million tonnes of integrated aluminium.
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“Our growth plans will see us become the world’s largest zinc producers and one among the top three silver producers globally.
“We successfully built and commissioned the Gamsberg mining complex in South Africa, this year, which is the world’s largest undeveloped zinc deposit,” said Mr. Agarwal.
The company is “cautiously optimistic” about restarting Tuticorin copper plant in Tamil Nadu, according to its CEO Srinivasan Venkatakrishnan.