AL Circle is honoured to present an exclusive interview with Rajiv Kumar, CEO of Vedanta Aluminium—India's largest aluminium producer and a key player in driving the nation's industrial growth and sustainability ambitions. In this conversation, Rajiv Kumar discusses Vedanta's transformation journey, its pioneering digital and green initiatives, and how the company is shaping the future of the aluminium industry both in India and globally.
AL Circle: Vedanta Aluminium is shifting focus from traditional commodity aluminium to value-added products, aiming to increase VAP share from 60% to over 90%. What are the biggest challenges and opportunities you foresee in accelerating this transformation?
Rajiv Kumar: As Vedanta Aluminium accelerates its journey towards becoming a global leader in value-added aluminium products, we recognize that the biggest strengths lie in our scale, deep technical expertise, and market presence across 60 countries. Global demand for high-quality aluminium products such as billets, wire rods and ingots are rising, and our tailored offerings already making a mark across several industries. With global aluminium demand set to increase by almost 40% by 2030 and India’s aluminium consumption alone set to grow to 10 MTPA, we are focused on expanding our refining and smelting capacities on the production side and backed by e-commerce initiatives such as Vedanta Metal Bazaar on the selling side. These place us in a strong position to meet rising demand while delivering world-class customer experience. Our emphasis on quality, innovation, and customer-centricity is aligned perfectly to grow our VAP share from 60% to more than 90%. We have recently announced significant investment into our VAP capacity at Jharsuguda, focusing on products like billets, wire rods, and rolled products to cater to high-margin sectors such as automotive, construction, and electrical.
The exponential growth in VAP share needs to be supplemented by achieving complete vertical integration in our operations, expanding downstream capabilities, and managing global market volatility. It also demands strong stakeholder collaboration and workforce upskilling. We view these as opportunities to boost operational efficiencies, strengthen supply chains, and reinforce Vedanta Aluminium’s status as a trusted global partner.
AL Circle: With Vedanta's vertically integrated model - from bauxite mining to finished aluminium products, how does this integration enhance cost leadership and supply chain resilience, especially amid global supply uncertainties and fluctuating commodity prices?
Rajiv Kumar: At Vedanta, we have prioritised achieving total vertical integration to optimise our supply chain, reduce costs, insulate ourselves from geopolitical volatility, and enhance supply security. By controlling every stage of the value chain, from bauxite mining and alumina refining to smelting and finished product manufacturing, we are able to significantly reduce our reliance on external variables and shield our operations from global market fluctuations and logistical disruptions.