Vedanta Group eyes $10 billion EBITDA, targets $4.2 billion from aluminium division

This bold plan was disclosed during site visits attended by more than 45 investors, fund managers, and analysts. According to two insiders at these site visits, Vedanta Group anticipates these new projects will generate an impressive $5 billion in free cash flows. This ambitious initiative underscores the group's commitment to significant growth and expansion across its diverse portfolio.

Vedanta Group has invested more than $8 billion in various expansion initiatives. According to the Indian news platform, Vedanta plans to open the world’s largest alumina refinery in Lanjigarh.

As reported by ET, Vedanta's near-term EBITDA of $10 billion comprises $4.2 billion from aluminium, $2.7 billion from Zinc India (zinc and silver), and $0.9 billion from oil and gas. The company's growth projects currently underway include:

• Expanding the Lanjigarh alumina refinery from 3.5 to 5 MTPA.
• Increasing the BALCO smelter capacity from 0.6 to 1 MTPA.
• Boosting overall power generation capacity from 2.9 GW to 5 GW.
• Doubling the Gamsberg Phase 2 capacity from 250 to 500 KTPA.

The presentation highlights that Vedanta's strategies are well-aligned to capitalise on India's economic growth, with the nation's GDP expected to surge and reach $7 trillion by 2030.

Vedanta has announced a vertical split and plans to list five new firms on the stock exchanges by the end of the year. Under this plan, for each share of Vedanta Limited that shareholders own, they will receive one share in each of the five newly listed businesses. This demerger will create independent, specialised firms focusing on aluminium, power, base metals, oil and gas, and steel and ferrous operations. Meanwhile, the zinc and other existing operations will remain part of Vedanta.