Demerger process will be finished in the next nine to twelve months, according to Vedanta's head of aluminum business

Demerger process will be finished in the next nine to twelve months, according to Vedanta's head of aluminum business

vedanta

In order to realize potential value, billionaire Anil Agarwal's company, Vedanta Ltd., stated last year that it will demerger its aluminum, oil and gas, electricity, and metals divisions to form distinct verticals.

According to a senior corporate executive, Vedanta is "actively" trying to spin off its important businesses, such as aluminum, into distinct listed companies. The process is expected to be finished in the next nine to twelve months.

In order to realize potential value, billionaire Anil Agarwal's company, Vedanta Ltd., stated last year that it will demerger its aluminum, oil and gas, electricity, and metals divisions to form distinct verticals.

According to John Slaven, CEO of Vedanta's aluminum division, "we are working very actively to secure an effective individual demerger of the aluminum business," PTI was given an interview. The demerger procedure is still under progress, he said. It requires many permissions from different agencies.

"In order to distribute loans across other organizations, we also need consent from our present lenders. Thus, it is still going on right now. We don't have direct control over it. Slaven said, "We are confident that the demerger will be accomplished in the next 9 to 12 months," but regrettably I am not in a position to inform you with clarity.

According to him, the move will assist Vedanta Aluminum chart its route and will be an evolutionary step for the company's aluminum industry.

Fundamentally, in my opinion, this helps Vedanta Resources and our investors grasp the potential and opportunity in the aluminum industry.

Since it will be a pure play, it will be more noticeable. With feedback from the investment community, our committed board of directors and management team will be able to create our own plan, according to Slaven.

In reference to the capacity expansion plans for 2024–2025, he said that the refinery expansion at Lanjigarh would be successfully completed by the end of the next fiscal year, resulting in a major turnaround in the company's operations.

"We're basically going from 550,000 tons to a million tons because we're expanding our Balco smelter," Slaven said. He anticipated that output would begin in the late second or early third quarter and gradually increase over the course of the remaining months of FY25.

Additionally, we are finishing up the growth of our value-added offerings. Our rolled product capacity is growing, and we are expanding our capacity for billet and foundry alloy. So we are taking it from 44,000 tons to roughly 100,000 tons. Thus, many of them will be finished in the next fiscal year."

He said that the third quarter of the next fiscal year would see the start of production at Vedanta's Sijimali bauxite mine.

In addition, production at the company's three other coal mines, Kurloi, Radhikapur, and Ghogharpalli, is scheduled to begin in nine to eighteen months.

Vedanta Aluminum is a division of Vedanta Limited, which is the nation's top aluminum manufacturer and produced 2.29 million tons of aluminum in FY23, or more than half of all aluminum produced in India. Additionally, it produces aluminum products with added value that are widely used in important downstream sectors.