Each demerged Vedanta firm has potential to be $100-bn company, chairman Agarwal

The four new companies formed after the restructuring of Vedanta have the potential to be $100 billion firms each, chairperson Anil Agarwal has said in a letter to shareholders. He has also highlighted the potential of the natural resources sector, both in India and global economies.

“While Vedanta currently contributes close to 1.4% to India’s GDP, there is a need for many more Vedantas to step forward to realise the sector’s true potential,” Agarwal wrote.

ALSO READFMCG firms seek separate law for beauty products

He said that the demerger process will help in this direction through the creation of four new natural resource-focused entities each with independent management, distinct capital structures, and assets, which will additionally result in the creation of a large number of downstream industries and a huge number of new jobs.

In September 2023, the Vedanta board had approved the proposed restructuring plan, which will result in the company being split into five, each in different sectors where Vedanta has presence. The four new companies — Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, and Vedanta Iron and Steel — will be eventually listed on the stock exchanges.

Vedanta Limited will house zinc and silver producer – Hindustan Zinc and will also as act an incubator for new businesses, including Vedanta’s technology verticals, the company said. Vedanta’s parent, Vedanta Resources, will continue to be the holding company.

ALSO READAmazon eyes spinoff and local listing Valuation may get impacted due to ongoing CCI probe

“If you look at where we are headed as a global economy and the demand for such products, these companies and their products are the need of the hour,” Agarwal said.

Last month, the company received approvals from shareholders and creditors for the proposed restructuring.

Comparing the contribution of natural resources as a sector to nations’ GDP worldwide, Agarwal observed that while the sector contributes 3% to the overall GDP in India, less than 20% of the country’s natural resources potential has been explored, giving way to an ample opportunity for growth.

 » Read More

Related Articles

Personal Income Tax: Guess how much of govt’s direct tax revenue comes from you!

Do you think that the biggest income of the government comes from corporate tax? If yes, then these figures may surprise you. A large part of the government’s direct tax collection comes from personal income tax, while the growth of corporate tax has lagged in gaining momentum. How much is the government earning from personal

IRCON International rallies 9% today. Here’s why…

IRCON International’s share price jumped 9% to an intra-day high of Rs 150.40 on the National Stock Exchange. The surge in the stock price came after the company received a contract almost worth Rs 1,100 crore from the Government of Meghalaya.  The contract needs to be completed within 36 months. “It is to inform that

SEBI gives final approval for LG Electronics India IPO: 4 things you need to know

The Indian stock market is set to welcome another heavyweight – LG Electronics India. In the latest development, the LG Electronics India IPO has received the final go-ahead from the market regulator SEBI. Let’s take a look at the key details of this upcoming IPO: SEBI’s recent approval paves the way for LG Electronics IPO

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Personal Income Tax: Guess how much of govt’s direct tax revenue comes from you!

Do you think that the biggest income of the government comes from corporate tax? If yes, then these figures may surprise you. A large part of the government’s direct tax collection comes from personal income tax, while the growth of corporate tax has lagged in gaining momentum. How much is the government earning from personal

IRCON International rallies 9% today. Here’s why…

IRCON International’s share price jumped 9% to an intra-day high of Rs 150.40 on the National Stock Exchange. The surge in the stock price came after the company received a contract almost worth Rs 1,100 crore from the Government of Meghalaya.  The contract needs to be completed within 36 months. “It is to inform that

SEBI gives final approval for LG Electronics India IPO: 4 things you need to know

The Indian stock market is set to welcome another heavyweight – LG Electronics India. In the latest development, the LG Electronics India IPO has received the final go-ahead from the market regulator SEBI. Let’s take a look at the key details of this upcoming IPO: SEBI’s recent approval paves the way for LG Electronics IPO

Firm Tuesday: Nifty closes above 22,800 for the first time in 16 sessions, Sensex joins the party

The domestic key equity indices rallied on Tuesday on the back of overall positive sentiments. The NSE Nifty 50 rose 325 points or 1.45% to settle at 22,834, while the BSE Sensex jumped 1,131 points or 1.53% to finish at 75,301. Nifty Realty was the top gainer among the sectoral indices, rising 3.16% in Tuesday’s

Noida real estate prices skyrocket in 3 yrs! Average growth rate surpasses Mumbai, other metros

In the post-pandemic period, property prices have risen exponentially across the top 7 Indian cities: Bengaluru, Pune, Hyderabad, NCR, MMR, Kolkata, and Chennai. Property rates in key micro markets of these cities have grown by as much as 128% between 2021-end and 2024-end, according to the latest data by ANAROCK Property Consultants. In the NCR