Diversified natural resources conglomerate Vedanta plans to invest $3 billion over two years, including $2 billion in FY23, to build capacities in zinc, oil & gas, and aluminium businesses as it believes supply will remain a challenge in the commodities’ space in the medium term.
The company, which has already invested $35 billion in the country so far, plans to become a $100-billion company by 2030, Vedanta chairman Anil Agarwal told shareholders on Tuesday.
Vedanta is also foraying into the manufacturing of semiconductor and display fabs and signed an initial pact with Foxconn, one of the world’s largest electronic manufacturer, to set up a manufacturing facility in India. India is 100% import-dependent for fabs and semiconductors with the domestic consumption expected to cross $80 billion by 2026 and touch $110 billion by 2030, Agarwal said.
“I truly hope this is only the beginning of the creation of a Silicon Valley in India with hundreds of enterprises and hundreds of thousands of talented Indians producing value for the world,” he added.
Stating that though the world economy is passing through disruptions, India is doing better than most countries. “Geopolitics and geoeconomics are also undergoing a change. The world is looking to adopt a China Plus One strategy and India is clearly in a sweet spot. This is India’s moment,” he said.
While Agarwal believes that the natural resource sector will play a pivotal role in India’s growth and employment story as India strives to become Aatmanirbhar, he said even small policy reforms can unleash the true potential of this sector. There is a need to boost exploration and production to reduce imports.
“The commodities sector, like the economy as a whole, has its cycles of ups and downs. But structurally, we are moving to a highly mineral-intensive future as economies globally go through the energy transition. Over the medium term, supply will remain a challenge as demand will be robust,” Agarwal said.
Stating that Vedanta is committed to delivering sustainable and responsible growth, he said the company has pledged $5 billion to reduce carbon emissions in operations to net zero by 2050 or sooner. “We have also set targets to become water positive by 2030 and use 2.5 GW of renewable energy in our operations by 2030,” he said.