Vedanta demerger ushers in expansion plans for aluminium and energy segments

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Following the Vedanta Limited demerger on May 1, 2026, the company has drawn up expansion plans across its major business segments, such as aluminium, energy, oil and gas. Anil Agarwal, Chairman, in a letter to shareholders, stated that Vedanta’s business verticals are being developed to achieve individual growth. for global competitiveness, equipped with scale, a strong cost advantage and well-defined avenues for growth. He stated, “Through this transformation, each of our businesses is emerging as a ‘Vedanta’ in its own right.”

The demerger aims to restructure each business segment into a standalone enterprise to optimise its value and positioning as a competitor on the global platform.  Each part would be provided with the scope for focused, sector-specific development with streamlined strategies and adequate capital allocation.

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Segments in focus: Aluminium, power, oil and gas

Vedanta is sharpening its focus on aluminium, with plans to lift capacity to around 6 million tonnes per year. By strengthening backward integration and tightening cost controls, the company is working to stay among the most cost-efficient producers globally. With demand building across infrastructure, mobility, aerospace, and electrification, the planned expansion is likely to reinforce its position in the global aluminium landscape.

The power portfolio is also being expanded. From an existing capacity of 4.2 GW, the company has lined up almost 12 GW under development. In order to benefit from rising electricity demand and the broader energy transition, it is exploring hydropower and nuclear energy opportunities alongside thermal power.

In the energy segment, Vedanta is preparing for a substantial ramp-up, targeting output in the range of 300,000 to 500,000 barrels per day. Backed by an investment plan of about USD 5 billion, the company aims to boost exploration and production capabilities. This vertical is expected to support India’s growing energy needs while raising output from existing assets.

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Other growth areas and strategy

The company is simultaneously scaling its iron and steel business, with capacity targeted to increase from 4 million tonnes to 10 million tonnes per annum, supported by integrated operations and raw material access. To fund its growth plans, Vedanta has earmarked INR 150 billion (USD 1.58 billion) in capital expenditure.

The company is also stepping up the use of digital tools and AI to enhance productivity and innovation.

Vedanta’s strategy indicates a clear push for aluminium, power and oil and gas toward scale, operational self-reliance, and stronger global competitiveness in the next phase of growth.

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