Vedanta delivers India’s largest employee equity grant in manufacturing, valued at ₹2,500 crore

THEBUSINESSBYTES BUREAU

NEW DELHI, JANUARY 21, 2026

Vedanta Limited, India’s leading metals, oil & gas, critical minerals, power and technology conglomerate, has created a cumulative wealth of nearly ₹2,500 crore for its employees through sustained Employee Stock Option (ESOP) grants over the past five years, marking one of the country’s most significant broad-based wealth creation initiatives in the manufacturing sector.

The latest tranche, ESOP 2025, includes stock options worth over ₹500 crore and has empowered nearly 1,200 first-time recipients, including fresh graduates. In all, Vedanta’s ESOP programme today covers close to 40 per cent of its workforce across plants, functions and career levels, making it among the most inclusive equity ownership models in India Inc.

With over two decades of uninterrupted ESOP administration, employee ownership has become deeply embedded in Vedanta’s organisational culture. Notably, the company extends ESOP benefits to freshers and early-career professionals, who are eligible for allocations amounting to nearly 30 per cent of fixed pay over the standard three-year vesting cycle — placing Vedanta among the very few large conglomerates in India to offer equity participation at this stage of employment.

A defining feature of the programme is the allotment of shares at a deeply discounted price of Re 1, reinforcing Vedanta’s commitment to shared ownership and long-term value creation with minimal upfront investment. With steady appreciation in share prices — particularly at a time when Vedanta’s stock is trading at record highs — ESOPs have enabled thousands of employees to meet critical life goals, including purchasing homes, funding higher education, buying vehicles, supporting families and building long-term savings.

Neeraj Kumar, Manager, Smelting Operations at Hindustan Zinc, said the ESOPs proved pivotal during a crucial family milestone. “When my family was completing the registration for our home in Patna, we needed urgent funds. At that moment, my ESOPs became our biggest support. When the options were granted three years ago, I didn’t fully realise their potential. But as Vedanta’s share price rose sharply and hit record highs, vesting them recently came at exactly the right time. It allowed me to support my family’s aspirations, and seeing my company stand by us made my father immensely proud. Very few organisations offer such inclusive wealth-creation opportunities for middle management.”

The most recent vesting cycle under ESOP 2022 delivered over 80 per cent share value appreciation, generating more than ₹300 crore in wealth for employees and underscoring the strong linkage between organisational performance and employee rewards.

The programme reflects Chairman Anil Agarwal’s long-standing vision of empowering employees, accelerating career growth and creating equitable financial opportunities across the organisation, with a particular focus on young professionals and women.

For many employees, ESOPs have emerged as a vital financial anchor, offering both security in times of need and confidence for long-term planning.

S M Rahaman Kasim, Associate GM, Quality Management at BALCO, Vedanta Aluminium, said, “Vedanta’s ESOPs have given me the confidence to fund my children’s education. One of my sons is pursuing MBBS in Russia and the other is studying in Guwahati. The ESOPs helped me fulfil their aspirations without financial stress.”

The ESOP programme’s performance-linked structure rewards sustained contributions in areas critical to Vedanta’s future growth, including automation, digitalisation, AI-driven innovation, operational excellence and sustainability.

Sharing a similar experience, Nilesh Bhor, Associate Manager, Finance at Sterlite Copper, said, “When my father’s car met with an accident and the insurance claim was rejected, the repair cost was overwhelming. My ESOP savings helped us manage the situation with dignity. It was truly a lifeline for my family.”

By placing equity ownership in the hands of engineers, young professionals, plant teams and middle management — groups traditionally excluded from equity-linked rewards — Vedanta is reshaping compensation norms in Indian manufacturing. The democratisation of wealth creation reinforces the company’s belief that employees should directly benefit from the value they help create.