Vedanta Targets Completion of Aluminium Business Demerger in 9-12 Months

Vedanta Targets Completion of Aluminium Business Demerger in 9-12 Months

Vedanta is actively working towards the demerger of its principal businesses, including aluminium, into independent listed companies, with the process expected to be completed in the next nine to twelve months, according to a senior company official. The move, initially announced last year, involves the separation of its metal, power, aluminium, and oil and gas sectors to enhance value.

John Slaven, CEO of Vedanta’s aluminium business, shared that the demerger is in progress and contingent on various regulatory approvals and consent from current lenders for debt allocation among the new entities. The timing of completion, while not fixed, is projected within the stated period, reflecting the company’s confidence in achieving this milestone.

This demerger represents a key development for Vedanta’s aluminium sector, allowing it to pursue its own objectives independently. The transition is expected to provide clearer insights into the business’s potential and opportunities for investors and Vedanta Resources.

In terms of growth, Vedanta has significant plans for 2024-25, particularly in expanding its refinery operations at Lanjigarh and doubling the capacity of its BALCO smelter. These expansions are part of a broader initiative to increase production across various aluminium products, enhancing the company’s market position.

Vedanta Aluminium, part of Vedanta, is a major player in India’s aluminium industry, producing over half of the country’s aluminium output at 2.29 million tonnes in the last fiscal year, along with a range of value-added products essential for downstream industries. icon

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