Vedanta's Strategic Demerger Paves Way for Targeted Growth

Vedanta Ltd. is set to demerge its diverse verticals, which cover over 15 commodities. Chairman Anil Agarwal highlights a shift from asset management to asset ownership. The demerger will create independent companies and simplify the corporate structure, providing direct investment opportunities. Vedanta aims to complete this process by fiscal year-end.

Vedanta Ltd. is advancing its strategic transformation with a proposed demerger of its diverse verticals, spanning over 15 commodities. The initiative aims to transition the company from asset managers to asset owners, according to Chairman Anil Agarwal.

The demerger will result in the creation of independent companies focusing on aluminium, oil and gas, power, steel, ferrous materials, and base metals. Existing zinc and new incubated businesses will remain under Vedanta Ltd., with the company filing the demerger scheme with the National Company Law Tribunal (NCLT) and securing approval from 75% of its secured creditors.

Vedanta is investing USD 1.9 billion as growth capex from FY24 onwards and aims to complete the demerger by the end of this fiscal year. The company reported a 36.5% increase in consolidated net profit for the quarter ending June 30, 2024, attributed to improved margins and robust cost reduction across its operations.

(With inputs from agencies.)