Vedanta chairman Anil Agarwal on Monday said each of the group’s five demerged businesses has the potential to become a $100 billion company, as he outlined ambitious growth plans across steel, nuclear power, oil and gas, aluminium and critical minerals following the conglomerate’s restructuring into sector-focused entities.
“Every (demerged) company has the potential to become a $100 billion company,” Agarwal said while addressing the media at the listing ceremony of the newly created entities. The four companies — Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel — were listed on the National Stock Exchange and Bombay Stock Exchange on June 15.
Agarwal also outlined a major expansion push into nuclear power, saying the group has signed an agreement in the sector and is targeting an initial capacity of 20,000 MW, with a long-term ambition of reaching 50,000 MW.
He linked the opportunity to India’s thorium reserves and rising electricity demand, positioning nuclear power as a key future growth driver alongside Vedanta’s existing energy businesses.
The chairman said Vedanta Resources could potentially command a valuation of $100 billion, though there are no immediate plans to relist the company. He said the company’s debt has been reduced to $5 billion from $12 billion after significant deleveraging.
“Vedanta Resources’ value can be $100 billion and all that money will come to India. It is only a thought. There is no plan at the moment,” Agarwal said.
Following the listing of the new entities after the demerger, Agarwal sought to reassure investors that the group’s dividend philosophy would continue. “We have always paid dividends and going forward we will be dividend-paying companies,” he said, adding that each new entity would decide its own payout policy.
He said Vedanta would continue to evaluate further demergers as individual businesses achieve scale.
Agarwal also highlighted plans to nearly quadruple steelmaking capacity to 15 million tonnes per annum (MTPA) over the next three years from around 4 MTPA currently. The expansion will largely come through brownfield development at the company’s Bokaro operations, while opportunities at its Bellary steel unit in Karnataka are also being explored.
He reiterated that the group’s $5 billion investment commitment in oil and gas remains on track, with production targeted to rise to 500,000 barrels per day within three years. The expansion could be funded through internal accruals and additional borrowing, if required.
Vedanta will continue to focus on aluminium, copper, nickel and critical minerals, while exploring opportunities in downstream manufacturing, Agarwal said. The group sees potential for more than 150 products around its metals and energy businesses.
However, Vedanta itself does not plan to enter downstream manufacturing immediately. Instead, it aims to support entrepreneurs by providing access to raw materials, power and infrastructure, he said.