A global player takes on local challenges

Anil Agarwal Chairman, Vedanta Resources Group

Sterlite Industries, India’s largest producer of non-ferrous metals such as aluminum, copper, zinc and lead, has several competitive edges over rivals—production costs far below global benchmarks, strong liquidity position, investment grade credit rating and a diversified portfolio. The company, which is part of billionaire businessman Anil Agarwal’s London-listed Vedanta Resources Plc, is also set to become one of the leading silver producers in the world in two years.

One of the risks that the company faces like any other player in an extractive industry, is the damage its operations could render to the environment. The company has to move cautiously while exploiting natural resources in a sustainable, environmentally and socially responsible manner. It is now awaiting the Supreme Court’s decision on its appeal filed against a lower court’s direction to close down a factory in Tamil Nadu for alleged violation of environment rules. The company says it has employed the most sophisticated environment protection technology.

Sterlite, which fully owns Sterlite Energy and Australian Copper Mines and holds majority stake in Bharat Aluminium and Hindustan Zinc, has substantial market share in these metals. Hindustan Zinc, which has the third largest zinc mine in India, is the country’s largest zinc producer by volume. It is the world’s largest integrated zinc-lead producer and has now 1.06 million tonne a year capacity. The company is now acquiring Anglo Zinc

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