Vedanta's Aluminium Business Head Anticipates Demerger Process to Conclude in 9-12 Months

PTI | Jharsuguda | Updated: 12-02-2024 11:37 IST | Created: 12-02-2024 11:37 IST
Vedanta's Aluminium Business Head Anticipates Demerger Process to Conclude in 9-12 Months

Vedanta is working ''actively'' for demerger of its key businesses, including aluminium, into separate listed companies and the process is likely to be completed in next nine to 12 months, a top official of the company said.

Billionaire Anil Agarwal-owned Vedanta Ltd had last year announced creation of independent verticals through demerger of its metal, power, aluminium, and oil and gas businesses to unlock potential value.

In an interview to PTI, John Slaven, CEO of aluminium business of Vedanta, said, ''We are working very actively in securing the successful demerger of the aluminium business.'' The process for the demerger is currently underway and is subject to a number of approvals from various authorities, he added.

''We also need approval from our current lenders in the allocation of debt across the various entities that will be separated. So that's playing out at the moment. It's not directly within our hands. So unfortunately I'm not in a position to tell you categorically when it will occur. We are confident that in the next 9 to 12 months the demerger will be completed,'' Slaven said.

The move, he said, will be an evolutionary step for Vedanta's aluminium business as it will help Vedanta Aluminium to chart out its own course.

''I think more fundamentally it enables our investors and Vedanta Resources to really have a much better understanding of the opportunities and potential of the aluminium business.

''It will become much more visible as it would be a pure-play. We will have a dedicated management team, a dedicated board of directors will be able to chart our own strategy with input from the investor community,'' Slaven said.

About capacity expansion plans for 2024-25, he said that the company will see a significant change in its business because the refinery expansions at Lanjigarh will be effectively completed by the end of next fiscal year.

''We are expanding our BALCO smelter, so we are essentially going from 5,50,000 tonnes to a million tonnes, Slaven said, adding that the production is expected to come in the late second quarter or in the beginning of the third quarter, and progressively ramp up during the rest of FY25.

''We are also completing expansion of our value-added products. We are adding billet capacity, we are adding capacity for foundry alloy, we are increasing the capacity of our rolled products business so we are taking that from 44,000 tonnes to about 100,000 tonnes. So a lot of that is going to be completed during the next fiscal,'' he said.

The production at Vedanta's Sijimali bauxite mine will begin in the third quarter of next financial year, he said.

Besides, the company's additional three coal mines -- Kuraloi, Radhikapur, Ghogharpalli -- will start production in about nine to 18 months.

Vedanta Aluminium, a business of Vedanta Limited, is the country's leading producer of aluminium, manufacturing more than half of India's aluminium i.e., 2.29 million tonnes in FY'23. It is also into value-added aluminium products that find critical applications in core downstream industries.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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