Vedanta AGM: 'Committed to make sizeable investments across business verticals,' says Anil Agarwal

Anil Agarwal, chairman of Vedanta Group, on Wednesday said that the metals conglomerate is committed to make sizeable investments across business verticals in the coming years. This comes in the backdrop of Vedanta and Foxconn joint venture deal to make semiconductors in India being terminated earlier this week.

Vedanta, a leading diversified natural resources and technology company in India, held its 58th Annual General Meeting (AGM) where the Chairman addressed shareholders and highlighted the country's growth potential and the company's impressive performance.

“This is India’s time in the world. India has registered a strong growth rate of over 7 per cent in FY 23 despite global headwinds. That is evidence of our immense potential,” said Agarwal.

“We are already the fifth largest economy in the world and will become the third largest economy in the world in the next four years. We have to ensure prosperity for all 1.4 billion Indians,” Agarwal added.

With annual imports exceeding $700 billion, of which 50 per cent consists of natural resources such as oil and gas, gold, diamonds, copper, and aluminium, Agarwal envisioned the potential for job creation, GDP growth, and increased revenue for the government. Vedanta, being the largest diversified natural resources company in India, is poised to seize this tremendous opportunity, he said.

“The world has its eyes on India as the next factory of the world. Our country stands to be the principal beneficiary of the "China + 1" strategy. We have a government that has a razor-sharp focus on creating an investment friendly environment,” said Agarwal

Vedanta's remarkable contribution to India's GDP and government exchequer was highlighted, with investments over $35 billion (Rs 2.9 lakh crore) and approximately Rs 3 lakh crore contributed to the government over the past seven years.

The company's commitment to substantial investments across various business verticals in the coming years was reiterated.

He highlighted the company's foray into the electronics sector, particularly the semiconductor and display fabs, which would contribute to the country's rapid growth and provide affordable electronic devices to the youth.

Regarding the company's performance, the Chairman reported impressive results, with revenue of Rs 1.45 lakh crore and an EBITDA of RS 35,241 crore in FY23. Vedanta achieved record production levels in aluminium, zinc, and steel and declared a total dividend of Rs 101.5 per share in FY23. The company has distributed approximately Rs 1 lakh crore in dividends to shareholders over the past decade.

The Chairman emphasised Vedanta's leadership position in all its business verticals. Hindustan Zinc Limited (HZL), Vedanta's subsidiary, stands as the world's largest fully integrated zinc-lead producer and the 6th largest silver producer globally. The company also holds a significant presence in the oil and gas, aluminium, nickel, copper, and iron ore sectors.

“Our strong presence in the natural resources sector is expected to yield even stronger returns in the coming years,” said Agarwal

“Apart from India’s robust growth, the mineral-intensive energy transition will also boost demand exponentially. Vedanta already has, in its unique portfolio, 7 minerals which are key to the new, emerging technologies,” Agarwal added.

ESG commitments were highlighted, with Vedanta's dedication to achieving net-zero carbon emissions by 2050 and net water positivity by 2030. The company pledged $5 billion over the next 10 years to accelerate the transition to net-zero operations. Several Vedanta businesses, including Cairn Oil & Gas, Hindustan Zinc Limited, FACOR, and Iron Ore Business, have already become water-positive.

Agarwal also acknowledged Vedanta's "world-class human assets" and the company's commitment to diversity and inclusion. Vedanta aims to achieve 40 per cent women in leadership positions by 2030, he said.

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