Vedanta to invest close to $8 billion over next 3 years across businesses

By: |
New Delhi | Published: August 25, 2018 3:36:54 AM

Metals and mining firm Vedanta Ltd will be investing close to $8 billion over the next three years in projects across its businesses, the company’s chairman Navin Agarwal told shareholders at the company’s 53rd annual general meeting on Friday.

vedanta, industryThe company will be investing 0-400 million to ramp up capacity
at Electrosteel Steels

Metals and mining firm Vedanta Ltd will be investing close to $8 billion over the next three years in projects across its businesses, the company’s chairman Navin Agarwal told shareholders at the company’s 53rd annual general meeting on Friday.

The investments will be made for the growth of all the businesses — oil, zinc, lead, silver and aluminium.

The company has outlined plans to increase oil production to up to 400,000 barrels per day, from the current 200,000 barrels per day. Similarly, the zinc business will expand to about 1.35 million tonne per annum. The company is also looking at growing its international zinc business and aluminium and alumina refinery capacities, he said.

Vedanta, which has become one of the first companies to acquire a stressed asset under the NCLT (National Company Law Tribunal) process with the takeover of Electrosteel Steels, now plans to ramp up the capacity in the asset from 1.5 million tonne per annum to 2.5 million tonne per annum. The company would be investing $300-400 million for the same, which is part of its overall capital expenditure plans, Agarwal said post the AGM.

The acquisition of debt-laden Electrosteel concluded in June 2018, marking the entry of the primarily non-ferrous company into the ferrous segment with steel. He said that the acquisition has a lot to do with the integration of its iron ore business.

As for funding, most of the capex will be funded through internal accruals. Agarwal said that the company has cash flows of `7,900 crore (as on March 31) and it has reduced gross debt by Rs 8,500 crore, and would not go for external debt.

Meanwhile, replying to a query on the firm’s troubled copper smelter at Tuticorin in Tamil Nadu, Agarwal said, “At this time our endeavour is to restart the copper smelter and discussion of expanding will happen afterwards.”

The Tuticorin plant has been closed since May after 13 people were killed in police firing during protests against the plant over allegations of it causing health and environmental issues.

Vedanta had posted a 2.13% year-on-year rise in consolidated net profit to Rs 1,533 crore in the three months of April-June, while the company’s revenues increased over 21% to `22,206 core.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.