Vedanta targets $100bn valuations for five demerged entities
Vedanta has outlined aggressive capacity expansion targets for its five newly listed entities, signaling a capital-intensive growth strategy aimed at unlocking significant shareholder value.
Last month, Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel began trading as independent businesses, separate from the holding company Vedanta Ltd. At the annual general meeting on Tuesday, founder Anil Agarwal told investors that each of these five entities has the potential to reach a $100 billion valuation.
The breakup fundamentally alters the investment thesis for the Indian mining conglomerate. Rather than a single integrated stock, investors now hold separate bets on distinct industrial commodities. "A year ago, you were shareholders of one integrated company. Today, you own five opportunities," Agarwal said. "Very few corporate transformations in the world have created such an opportunity for shareholders."
The execution risk for these targets is substantial, given the sheer scale of the proposed capital expenditure. Vedanta Aluminium Metal, already India's largest producer, plans to double capacity to 6 million tonnes within three years. Agarwal pledged this expansion would be achieved at the lowest cost globally. The oil and gas unit is simultaneously targeting production of 500,000 barrels per day.
The heavy industry units are also eyeing massive scale-ups. Vedanta Iron and Steel intends to grow its capacity from 4 million tonnes to 15 million tonnes annually, pivoting toward green and specialty steel. In power generation, the group aims to reach 20,000 MW and is actively exploring a move into nuclear energy.
Critical minerals drive
Beyond the newly listed units, the broader group is targeting significant production increases across its mineral portfolio. Management plans to triple zinc and lead output to 3 million tonnes by 2031, double silver to 1,500 tonnes, and lift copper to 1 million tonnes by the end of the decade. Ferrochrome capacity is slated to reach 500,000 tonnes by fiscal 2028, while nickel output will grow to 60,000 tonnes.
The company is accelerating exploration across ten critical and strategic mineral blocks. These include reserves of lithium, cobalt, gold, copper, nickel, manganese, rare earths, and potash. Agarwal identified technology as the group's "biggest" partner, stating it is being embedded across operations to boost safety, sustainability, and productivity. "Our goal is simple: To become smarter. Faster. Safer. And better," he said.
The planned expansion underscores Vedanta's centrality to India's economic infrastructure. The group contributed over Rs 62,000 crore to the national exchequer last fiscal year and more than Rs 5,00,000 crore over the past decade. Summarizing the corporate strategy, Agarwal told shareholders: "Together, we have built one remarkable Vedanta. Together, we will now build five extraordinary futures. Vedanta Unlimited."
