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 primary foundry alloys (PFA) 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.
On the upstream front, we are ramping up our alumina refining capacity and have secured captive coal and bauxite mines. On the mid and downstream front, we are expanding our smelting capacity and diversifying our product mix to include a broad range of value-added aluminium products like billets, wire rods, rolled products, and primary foundry alloys, meeting the evolving demands of both domestic and international markets. In addition, we are developing the Vedanta Aluminium Park in Jharsuguda, which will enable downstream companies to set up their manufacturing units in close proximity to our plant and access hot metal within a very short timeframe.
By focusing on both upstream and downstream expansion, we not only strengthen our competitive advantage but also boost our supply chain resilience, enabling Vedanta Aluminium to navigate global uncertainties and maintain our market leadership in the aluminium industry.
AL Circle: Scaling production while driving down costs per tonne is a major goal. Could you share some specific initiatives or innovations—particularly in digital technology or captive resource development - that Vedanta Aluminium is implementing to achieve this balance?
Rajiv Kumar: On the digital front, we have integrated advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Industrial Internet of Things (IIoT) across our operations. Deployment of Digital Twin technology enables predictive maintenance by simulating equipment performance, minimising downtime and enhancing operational reliability. Additionally, our proprietary logistics app streamlines transport and loading processes, reducing vehicle turnaround time and boosting efficiency across the supply chain. Further, we have deployed innovative drone-based solutions at our mining operations to boost inventory monitoring and pre-empt any supply disruption.
In terms of captive resource development, we are ramping up alumina refining capacity at Lanjigarh and developing captive mines that will ensure stable and cost-effective access to critical raw materials. These initiatives, combined with a $1.5 billion investment in expanding smelting and value-added product capacity, are designed to optimise costs, secure supply, and position Vedanta Aluminium as a leader in both operational efficiency and market responsiveness. By focusing on both digital transformation and resource integration, we are well-positioned to deliver.
AL Circle: Vedanta has launched India's first low-carbon "green" aluminium range, Restora, and is heavily investing in renewable energy and sustainability. How do you envision sustainability shaping Vedanta Aluminium's competitive advantage in the domestic and international markets over the next five years?
Rajiv Kumar: Sustainability is rapidly becoming a defining factor across manufacturing industries, and Vedanta Aluminium’s pioneering initiatives, such as launching India’s first low-carbon aluminium range, Restora, are positioning us at the forefront of this transformation. Restora and Restora Ultra, manufactured using renewable energy and advanced recovery technologies, have greenhouse gas emission intensities well below global low-carbon thresholds, meeting the rising demand from sectors like automotive, aerospace, and consumer electronics for responsibly produced aluminium. As the first major Indian producer to offer independently verified low-carbon primary aluminium, we are helping our customers globally achieve their decarbonization goals.
Over the next five years, our investments in renewable energy, which will comprise 30% of our energy usage by 2030, will further strengthen our competitive edge both domestically and internationally. We are also continuously exploring avenues for the responsible usage of resources and building a circular economy. Most recently, we developed a patented process in collaboration with the CSIR - Institute of Minerals and Materials Technology (IMMT), Bhubaneswar, to recover battery-grade graphite from waste generated during aluminium production. By integrating sustainability into every facet of our operations, from waste-to-wealth initiatives and ecological conservation to decarbonising our energy mix and responsible consumption practices, we are building a resilient, future-ready business model.
AL Circle: Given your extensive experience in steel and mining, how do you view the future trajectory of the Indian aluminium industry, and what role do you see Vedanta Aluminium playing in driving growth, technology adoption, and global competitiveness for India's aluminium sector?
Rajiv Kumar: The Indian aluminium industry is poised for robust, long-term growth, driven by factors such as rapid urbanisation, infrastructure development, and the country’s accelerating transition toward sustainable solutions like electric vehicles and ‘green’ buildings. Aluminium consumption is expected to rise sharply across sectors such as automotive, transport, construction, and packaging, which is supported by favourable government initiatives and a strong push for domestic manufacturing. However, the overall sector also faces challenges such as import dumping and raw material security, underscoring a need for evolving innovative, indigenous solutions and supply chain resilience.
Vedanta Aluminium is uniquely positioned to lead this next phase of industry transformation. As India’s largest primary aluminium producer with more than 50% domestic market share and a rapidly expanding portfolio of value-added products, the company is setting benchmarks in technology adoption, sustainability, and operational excellence. Our investments in digitalisation, low-carbon aluminium (Restora), and long-term renewable energy sourcing are not only enhancing efficiency and reducing our carbon footprint but also aligning with global standards and customer expectations, solidifying our competitiveness on the global stage.
AL Circle: How is Vedanta leveraging technology to manage its vast and complex supply chain, and how is the company using technology to enhance its energy conservation efforts?
Rajiv Kumar: Vedanta Aluminium is leveraging a suite of advanced digital technologies to efficiently manage its large and complex supply chain. By integrating AI, ML, and IIoT, we optimise inventory management, resource planning, and demand forecasting in real time, which helps reduce waste and ensures the timely delivery of materials. Geofencing and AI-driven telematics further enhance operational precision, while satellite-based tracking systems, combined with ML, provide real-time monitoring and traceability of material shipments, improving logistics planning, reducing transport-related wastage, and maintaining production efficiency.
On the energy conservation front, we have implemented several pioneering initiatives. The patented ‘Vedanta Lining Design’ for our aluminium smelting pots reduces energy consumption by 200-250 kWh per tonne and extends pot lifespan, which can cut 386,000 tonnes of CO₂ emissions annually at our Jharsuguda smelter. IIoT-based devices in our thermal power plants enable more precise emissions control, while the use of biomass briquettes at the Lanjigarh refinery is contributing to significant annual carbon reductions. These technology-driven efforts not only enhance operational efficiency but also align Vedanta Aluminium’s operations with its sustainability goals and the global ambition for carbon neutrality by 2050.
AL Circle: With evolving global trade dynamics, including U.S. tariffs on aluminium imports and the European Union’s Carbon Border Adjustment Mechanism (CBAM), how is Vedanta Aluminium positioning itself to navigate these regulatory challenges? What alternative or emerging markets do you see as strategic priorities for expanding Vedanta’s global footprint in the coming years?
Rajiv Kumar: At Vedanta Aluminium, we have a track record of achieving milestones that proactively align with evolving domestic and global regulatory frameworks, thereby accelerating our sustainability journey and strengthening our presence in diverse markets. We are making significant strides in decarbonising our operations, having entered into long-term agreements to source over 1300 MW of renewable energy, including both solar and wind. In addition, we have partnered with GAIL to supply natural gas to power our cast house operations. This transition, along with our exploration and adoption of alternative fuels and innovative process technologies as they become commercially viable, is set to reduce our greenhouse gas emissions by approximately 3.2 million tonnes of CO₂ annually.
To address the growing demand globally for low-carbon aluminium, which enables downstream producers to offer products with a low carbon footprint, we introduced India’s first low-carbon aluminium range: Restora and Restora Ultra. These solutions are gaining traction in markets that prioritise sustainability. India’s rapid economic growth is driving strong and sustained demand for aluminium, making the domestic market increasingly attractive as well. The growth in sectors such as construction, electrical transmission, renewable power, and automobiles will continue to underpin robust aluminium demand in India.
