Vedanta Ltd has announced plans to invest USD 6 billion across various sectors, including aluminium, zinc, iron ore, steel, and oil and gas. The aim is to boost annual earnings before interest, taxes, depreciation, and amortization (EBITDA) by at least USD 2.5 billion. With a pipeline of over 50 active projects and expansions, the company anticipates generating incremental revenue of over USD 6 billion and elevating EBITDA from an expected USD 5 billion in the current fiscal year to USD 7.5 billion by FY27, news agency PTI reported.
Vedanta Investment Plans and Growth Projections
Vedanta‘s Chairman, Anil Agarwal and company’s vice chairman, Naveen Agarwal, during the investor meeting, outlined plans for several projects aimed at delivering yearly EBITDA of USD 7.5 billion. Investments totalling USD 6 billion across various business verticals are expected to yield incremental revenues of USD 6 billion and an additional yearly EBITDA potential of USD 2.5-3 billion. Noteworthy projects include refinery expansions, power plant commissioning, and capacity enhancements across different facilities.
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Deleveraging and Financial Outlook
Deleveraging remains a top priority for Vedanta, with plans to reduce net debt to USD 9 billion by FY27 from the current USD 13 billion. The company’s CFO, Ajay Goel, highlighted a USD 3 billion deleveraging strategy over the next three years without increasing debt levels. Additionally, Vedanta Resources, the parent company, has reduced net debt by USD 3.5 billion in the last two years and aims to reprofile near-term bond maturities.
Vedanta Limited aims to unlock shareholder value through strategic initiatives, including the proposed demerger of businesses to create independent verticals. The demerger will allow shareholders to receive shares in newly listed companies, providing direct investment opportunities in sector-focused entities. The move aims to simplify the corporate structure and enhance the growth trajectory of each business segment.
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Vedanta’s Future Growth Prospects
Looking ahead, Vedanta is poised for significant expansion across its diversified portfolio, including metals and minerals, oil and gas, power, and manufacturing. With ambitious growth targets set for various business units, including Zinc International and Copper India, the company anticipates substantial revenue and EBITDA growth by FY27, PTI reported.
