### **Overview** Vedanta Limited is India’s largest diversified natural resources conglomerate, with integrated operations spanning **aluminium, zinc, iron ore, steel, copper, oil & gas, power, and ferroalloys**. Headquartered in Mumbai and part of Vedanta Resources Limited (VRL), the company operates across seven reportable segments and maintains a strategic international presence in countries including South Africa, Namibia, UAE, Liberia, Ireland, Japan, South Korea, and Taiwan. --- ### **Strategic Outlook & Corporate Restructuring (Key Focus: 2025–2026)** - **Demerger into Four Independent Entities:** In a significant structural shift, Vedanta plans to demerge into **four pure-play, sector-focused companies** by FY26, with each shareholder receiving one share in each new entity. The aim is to unlock long-term shareholder value, enhance strategic agility, and attract targeted global investment. - **Post-Demerger Structure:** Vedanta Limited will retain **Hindustan Zinc (HZL)** (63.4% stake), **Zinc International**, and act as an incubator for technology and downstream ventures. The demerger is expected to create multiple $10 billion+ businesses with potential for global scale. --- ### **Core Business Segments – Capacity, Expansion, and Strategic Highlights** #### **1. Aluminium Business – India’s Largest Primary Producer & Global Expansion Target** - **Current Capacity:** 3.1 MTPA (planned expansion to **5.5 MTPA by FY27**) - Jharsuguda Smelter: 1.8 MTPA - BALCO: 0.6 MTPA → expanding to **1.1 MTPA** - **Alumina Refining:** Lanjigarh refinery at **3.5 MTPA** (expandable to **6 MTPA**), ensuring **100% captive alumina supply**. - **Bauxite & Coal Security:** - Sijimali bauxite mine (9 MTPA start in FY25–26) with reserves of 310 million tonnes. - 100% coal secured via Jamkhani, Radhikapur, Kuraloi, Ghogharpalli, and Barra mines. - **Value-Added Products (VAP):** Targeting **90% of output as VAPs** with EBITDA of ~$1,300/tonne. - **Sustainability Initiatives:** - **Restora & Restora Ultra:** Low-carbon aluminium brands with GHG emissions <1 tonne CO₂e/tonne — ~75% lower than global average. - **Green hydrogen** R&D with IIT Bombay; **ultra-high-purity aluminium (99.99%)** for aerospace/electronics. - **R&D & Innovation:** - New high-strength alloys (with IIT Kharagpur, CSIR-NML): HTLS conductor, 5XXX-Sc for EVs, defence, aerospace. - Patents filed for red mud utilization, waste-to-wealth tech, and process optimization. - **Global Ambition:** Targeting top 3 non-Chinese aluminium producers with **3 MTPA integrated capacity and full backward integration**. --- #### **2. Zinc & Lead – Global Scale & Cost Leadership** - **India (HZL):** World’s second-largest integrated zinc-lead producer, 75% domestic market share. - Mined metal production: **1,095 KTPA (FY25)**. - Smelting capacity: **1.12 MTPA**; expanding to 1.5 MTPA. - Silver output: **687 tonnes (FY25)**. - **Zinc International:** - **Gamsberg Phase-II Expansion:** Adding **200 KTPA MIC capacity**; total MIC to reach **525 KTPA by FY26**. Project 63% complete, commissioning in H1 FY26. - **Black Mountain Mining (BMM):** 700 KTPA iron ore plant under construction, adding **magnetite** line. - **Combined R&R Base:** Over **1 billion tonnes of ore**, positioning Vedanta as a top-tier global zinc miner. - **Low-Carbon Leadership:** - **EcoZen**: Asia’s first low-carbon zinc (CO₂e <1 tonne/tonne) — used in galvanizing, reducing emissions by 400 kg/tonne. - **E-Commerce & Customer Access:** - **e-Volve platform**: B2B digital marketplace for zinc, lead, and silver; real-time LME-linked pricing. --- #### **3. Oil & Gas – India’s Largest Private Producer (Cairn O&G)** - **Production (FY25):** ~103 kboepd (19% YoY growth), targeting **50% of India’s domestic oil & gas output**. - **Asset Base:** 73,000 sq km across **62+ blocks**, including OALP and PSC. - **Growth Projects:** - Commissioning ~120 wells in FY25–26. - Jaya field monetization using **CNG trucking solution** until pipeline connectivity. - ASP (Alkaline-Surfactant-Polymer) flooding – first in India – for enhanced oil recovery. - **Exploration:** Drilling 10+ wells in Assam; frontier exploration in NE, KG basin. - **Technology & Digitalization:** - Cloud-based petro-technical platform; **digital oilfields** with BabelFish monitoring. - Controlled Source Electromagnetics (CSEM) for deepwater exploration in KG block. - **Financial Strength:** Ranked among global lowest-cost producers with strong FCF generation post-CAPEX. --- #### **4. Steel & Iron Ore – Low-Cost, Global-Grade Output** - **Steel (ESL):** Expansion from 1.7 → **3.5 MTPA hot metal capacity**. - Key projects: 1,264 m³ BF, 0.5 MTPA coke ovens, ductile iron pipe plant. - Full downstream expansion (1.7 MTPA) in pipeline to ensure 100% VAP. - **Iron Ore:** - Operations in **Goa, Karnataka, Liberia (WCL)**. - **3 MTPA expansion at WCL** (Liberia), targeting **"Green Steel"** feedstock. - 84.92 million tonnes at Bicholim (Goa); Bomi mine at 2.5 MTPA by FY25. - **Pig Iron & Value Addition:** 817 KT produced (FY25), with VAB reducing fuel rate to **550 kg/THM** via PCI optimization. --- #### **5. Power Business – 4.78 GW of Integrated Capacity** - **Operational (as of FY25):** - Talwandi Sabo (1,980 MW – super-critical, PPA with PSPCL till 2041) - Jharsuguda (600 MW – PPA with GRIDCO till 2037) - Meenakshi (1,000 MW via NCLT acquisition) - Athena (1,200 MW – acquired for ₹565 cr, full operation by March 2026) - **Coal Linkage:** 100% domestic for TSPL & Jharsuguda; Athena & Meenakshi securing linkages by FY26. - **Margins:** Generation cost of ₹2.5–4.6/unit; realization of ₹2.9–5.4/unit (FY28), indicating strong margins. - **Future:** Total **5 GW commercial power capacity**, forming the foundation of a dedicated Vedanta Power entity post-demerger. --- #### **6. Copper & Nickel – Strategic for EV and Electronics Transition** - **Copper Smelting:** 125 KTPA rod plant being built in **Saudi Arabia (Vedanta Copper International)**. - **Sterlite Copper (Tuticorin):** Smelter under force majeure; no production. - **Copper Refining:** Silvassa refinery (216 KTPA) operational; producing green copper via fire-refined recycling tech. - **Nickel (Nicomet):** - India’s only primary nickel producer; 50% domestic market share in nickel sulphate. - Output: ~3,000 tonnes; target of **10 KTPA** via debottlenecking. - Long-term EV supply contracts with international OEMs. - Plans for **50 KTPA greenfield plant** to meet domestic demand. --- #### **7. Critical Minerals & Exploration** - Won **6 critical mineral blocks** in national auctions (gold, tungsten, cobalt, PGE, graphite, diamonds). - **Hindmetal Exploration Services (HESPL)** managing 10 projects in 7 Indian states. - Expanding into battery materials: **Zinc-air, Zn-ion, Ni-Zn batteries** (with IIT Madras, JNCASR, Æsir Technologies). --- ### **Technology & Innovation – Vedanta Spark and Project Pratham** - **Vedanta Spark:** Innovation platform collaborating with **1,800+ global startups** to pilot AI, IoT, drones, generative AI in mining, smelting, and power. - **Digital Transformation (Project Pratham Phase 2):** - **AI/ML** for predictive maintenance, coal blending, smelter optimization. - **Digital twin** technology at ESL and HZL – increasing production by 4–5%. - Real-time monitoring, remote control in mining, automation in logistics and reconciliation. - **T-Pulse (AI safety system):** Deployed at 25 sites for real-time hazard detection. --- ### **ESG & Sustainability – "Transforming for Good"** - **Targets:** Zero harm, zero discharge, zero waste. - **Waste-to-Wealth Initiatives:** - Utilizing **bauxite residue (red mud)** for road construction, geopolymer concrete. - Recovering **high-purity graphite (>99%)** from spent pot liner. - **Carbon Leadership:** - Over **66,000 tonnes of green aluminium** sold in FY25 (₹1,584 crore revenue). - Energy optimization saving 7.5 million kWh/year. - **EcoZen, Restora, Restora Ultra** – flagship sustainable products with marketing and regulatory edge. --- ### **Financial & Investment Highlights** - **CAPEX (FY25–26):** $1.5–1.7 billion allocated for capacity expansion and integration. - **Record Performance (FY25):** - Aluminium: **2.42 million tonnes** (9% YoY alumina growth). - Power Sales: **12.8 billion units**. - Oil & Gas: 103 kboepd → 19% growth. - **Financial Rebuilding:** Credit upgrades from S&P, Moody’s, Fitch, ICRA in FY25.