Anil Agarwal-promoted $ 6.6 billion Vedanta Group is planning major expansion of its metals business and is set to spend $2 billion (around Rs 9,000 crore) over the next two to three years to significantly enhance capacity. The company is looking to increase its aluminium manufacturing capacity by 25-fold, zinc by five times and silver by about 12 times.
“Vedanta is moving ahead to become a global leader in zinc-lead production, as we commission our third phase of expansion at Rajpura Dariba in Rajasthan. In aluminium, our plans are to produce 2.5 million tonnes of aluminium, which would position Vedanta among the top five global aluminium producers,” Vedanta group CEO MS Mehta said.
The company has already invested over Rs 40,000 crore to expand its metal business and would be spending another Rs 9000-10,000 crore over next three years to complete first phase of its metal expansion plan. Besides, zinc and aluminium, Vedanta is also planning to expand its copper production to 1.2 million tonne a year, which would position the group among the top five global copper producers.
The company’s silver production would also go up to 550 tonnes within few years placing the group among the top ten global silver producers. Vedanta has metal producing units in the states of Chhattisgarh, Orissa, Rajasthan and Tamil Nadu and copper facility in Zambia.
“The group has brought about $9 billion foreign capital for various projects for investment in the country and is moving ahead to invest a total of about $20 billion for its metal, mining and power businesses,” Mehta said. The company also expects to increase the capacity of Sesa Goa from 15 million tonne to 50 million tonne by 2014.
As of December 1, 2009, the company’s cash reserves stood at $7.1 billion. It has raised close to $ 4 billion debt during the last one year to fund expansion. Besides, metal the company is also expanding its footprint in the power sector. A substantial portion of $20 billion investment (about $ 8 billion) would be invested in power business.
“Vedanta is moving ahead to become a global leader in zinc-lead production, as we commission our third phase of expansion at Rajpura Dariba in Rajasthan. In aluminium, our plans are to produce 2.5 million tonnes of aluminium, which would position Vedanta among the top five global aluminium producers,” Vedanta group CEO MS Mehta said.
The company has already invested over Rs 40,000 crore to expand its metal business and would be spending another Rs 9000-10,000 crore over next three years to complete first phase of its metal expansion plan. Besides, zinc and aluminium, Vedanta is also planning to expand its copper production to 1.2 million tonne a year, which would position the group among the top five global copper producers.
The company’s silver production would also go up to 550 tonnes within few years placing the group among the top ten global silver producers. Vedanta has metal producing units in the states of Chhattisgarh, Orissa, Rajasthan and Tamil Nadu and copper facility in Zambia.
“The group has brought about $9 billion foreign capital for various projects for investment in the country and is moving ahead to invest a total of about $20 billion for its metal, mining and power businesses,” Mehta said. The company also expects to increase the capacity of Sesa Goa from 15 million tonne to 50 million tonne by 2014.
As of December 1, 2009, the company’s cash reserves stood at $7.1 billion. It has raised close to $ 4 billion debt during the last one year to fund expansion. Besides, metal the company is also expanding its footprint in the power sector. A substantial portion of $20 billion investment (about $ 8 billion) would be invested in power business.
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