Vedanta unveils ambitious ‘3D Strategy’ to double company size through demerger, diversification, and deleveraging

THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 10, 2025

At the milestone 60th Annual General Meeting of Vedanta Ltd., Chairman Anil Agarwal unveiled a transformative vision for the company’s future, anchored in a bold ‘3D Strategy’—Demerger, Diversification, and Deleveraging. This strategic blueprint is aimed at doubling the size of the company while unlocking maximum value for stakeholders, setting the stage for Vedanta’s next phase of accelerated growth.

Chairman Agarwal emphasized that Vedanta’s growth trajectory is deeply aligned with India’s broader economic and energy ambitions. Backed by strong financials, industry-leading shareholder returns, and a rapidly expanding portfolio of critical minerals and energy transition metals, the company is well-positioned to lead in sectors vital to the country’s self-reliance and sustainability goals.

A key highlight of the AGM was Vedanta’s demerger plan, which has received overwhelming support from stakeholders with more than 99.5 percent shareholder and creditor approval. The demerger is now in its advanced stages and will result in four independent listed entities, each with a clear strategic focus, distinct investor base, and individual growth pathway. According to Chairman Agarwal, this structural transformation will allow each business to realize its full potential, with the ability to evolve into $100 billion enterprises.

The Chairman also announced Vedanta’s strategic push into the critical minerals sector, noting that the company has already secured 10 mineral blocks across India—a significant milestone that positions it as one of the largest private holders of such assets. He underlined that while India’s geology is comparable to resource-rich nations like Canada and Australia, only 25 percent has been explored, making this the right time for expansion in this sector.

Further strengthening its industrial footprint, Vedanta is establishing the world’s first Industrial Zinc Park and India’s largest Aluminium Park. These upcoming hubs are designed to support thousands of MSMEs and are expected to generate large-scale employment, marking the dawn of a metal revolution in the country. The parks will serve as powerful engines of manufacturing and innovation, helping to build an ecosystem of self-sufficient industries.

In line with future-ready investments, Vedanta also announced plans to incubate 1,000 deep-tech startups through one of India’s largest industrial incubator platforms. This initiative will drive innovation across the manufacturing sector, laying the groundwork for industrial champions of the future. Chairman Agarwal remarked that this is not merely a growth story but a vision of realizing India’s aspirations and building a developed Bharat.

Financially, Vedanta delivered a robust performance in FY 2024–25, reporting revenues of ₹1,50,725 crore and an EBITDA of ₹43,541 crore. The company emerged as one of the top wealth creators in the NIFTY 100, delivering a total shareholder return of 87 percent. Several expansion projects are underway, including a ₹12,000 crore investment in a 2.5 lakh tonne integrated zinc smelting complex. In the Oil & Gas sector, Cairn has acquired seven new OALP blocks and is targeting a doubling of production to 3 lakh barrels per day. Aluminium capacity is being expanded to 31 lakh tonnes, with a 30 lakh tonne greenfield smelter also in the pipeline.

Sustainability continues to be at the core of Vedanta’s operations. The company has committed to achieving net zero emissions by 2050. Hindustan Zinc has been ranked first globally in the metals and mining sector in the S&P Global Corporate Sustainability Assessment 2024, while Vedanta Aluminium holds the second spot in the aluminium category. Vedanta’s flagship social initiative, Nand Ghar, has expanded to over 8,500 centers across 15 states, supporting child development and women’s empowerment.

In a visionary announcement, Agarwal shared his aspiration to establish Vedanta University — a world-class institution inspired by global models such as Harvard. This university will be a cornerstone of the company’s CSR efforts, aimed at bringing global standards of research and education to India and nurturing the next generation of scientists, engineers, and leaders within the country.

Closing the AGM, Agarwal acknowledged the contribution of Vedanta’s one lakh-strong workforce, highlighting that 22 percent of the overall workforce and 28 percent of leadership positions are held by women. The company has set a target to increase female representation to 30 percent by 2030, reaffirming its commitment to inclusivity and equitable growth.

With its 3D strategy, Vedanta is not only restructuring its own future but is also laying the foundation for India’s transformation into a global industrial powerhouse.