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11 AUGUST 2022 AL CIRCLE

Vedanta plans to invest $2 billion to strengthen its aluminium, oil and zinc capacities

EDITED BY : SARNALI CHAKRABORTY 2MINS READ

Vedanta Limited, one of the leading oil to metals organisations, has planned to invest $2 billion in aluminium, zinc, oil and gas for FY23. Anil Agarwal, the chairman of Vedanta, stated during a speech at the firm's Annual General Meetings (AGM) that the business is entering the strategic manufacturing of semiconductor fab and display fab.

Vedanta plans to invest $2 billion to strengthen its aluminium, oil and zinc capacities

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“Not only are semiconductors in short supply globally, but India is also 100% import dependent,” said Agarwal.

According to him, domestic semiconductor consumption may reach $110 billion by 2030 and surpass $80 billion by 2026. Therefore, Vedanta and Foxconn, one of the biggest electronics manufacturers in the world, inked a MoU to establish an integrated semiconductor manufacturing plant in India.

“I truly hope this is only the beginning of the creation of a Silicon Valley in India with hundreds of enterprises and hundreds of thousands of talented Indians producing value for the world,” said Agarwal at the AGM.

Vedanta's financial year FY22 was its strongest ever, with the business posting record sales of INR 131,192 crore and EBITDA (profits before interest, taxes, depreciation, and amortisation) of INR 45,319 crore, up by 66 per cent from the previous year and adding more than INR 54,000 crore to the government exchequer. Agarwal said the conglomerate has pledged $5 billion to reduce carbon emissions in operations to net zero by 2050 or sooner. 

The world of aluminium extrusions

“Our strong cash flows put the company in a great position for growth. Your company (Vedanta Limited) in FY22 has been the highest dividend paying company in India with a pay-out of Rs 45 per share. Our Board has already announced interim dividends of Rs 51 per equity share for the financial year 2023 amounting to Rs 18,960 crore,” added Anil Agarwal.


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