Vedanta Ltd, under the leadership of Anil Agarwal, has revealed plans to invest INR 13,226 crore (USD 148 million) to boost its aluminium production capacity from the current 2.4 million tonnes per annum (MTPA) to 3.1 MTPA by FY28. This move underscores the company's dedication to solidifying its presence in India's aluminium industry.
Focus: Vedanta’s current AL production expansion
The company holds a commanding share of over 50 per cent in the domestic aluminium market. It is setting its sights on aluminium as the key player in achieving its ambitious group-level EBITDA target of USD 8 to 10 billion by FY28, as highlighted in a recent exchange filing. Aluminium, being the second most consumed metal globally after steel, is increasingly important in vital sectors like electric mobility, renewable energy, urban infrastructure and aerospace.
BALCO, a part of Vedanta, is on the brink of hitting the impressive milestone of one million tonnes in production capacity. Vedanta has been actively focusing on cost optimisation, managing to cut down aluminium production costs by nearly 24 per cent, which is almost about USD 641 per tonne, outpacing the last 11 quarters. This achievement has been bolstered by improved backward integration, including its Lanjigarh refinery and the development of its own coal mines.
An industry expert stated, "Aluminium is increasingly the backbone of the energy transition. With scale and integration, Vedanta can secure India's demand while becoming competitive internationally."
Moreover, the firm's aluminium operations are fully captive, a model that deviates from global norms. This integrated setup provides the company with resilience amid volatile geopolitical conditions while supporting low-cost manufacturing.
Also read: Vedanta ramps up aluminium production, capex and margin outlook
The demand for aluminium in India is soaring, due to the strong GDP growth, which is expected to rise in the coming years. Initiatives from the government like 'Make in India', '100 per cent rural electrification', 'Housing for All' and 'Smart Cities' are likely to boost the consumption of this metal throughout the country.
Previous expansion plan in 2025
In August, Vedanta rolled out an ambitious three-year capital expenditure plan worth USD 10 billion, with a strong emphasis on boosting its aluminium operations. The goal is to ramp up the company's aluminium smelting capacity to 3.1 million tonnes per annum (MTPA) by FY28, which would place the firm among the top primary aluminium producers in the world, outside of China.
A significant chunk of this investment is earmarked for backward integration projects, such as increasing its alumina refinery capacity to 5 MTPA by FY26 and developing its own power generation capabilities. This move is all about ensuring production that's both cost-effective and sustainable.
Vedanta's share price movement
The firm's shares, on Monday, October 6, 2025, opened on a positive note, with early trading on the National Stock Exchange (NSE) reflecting a 0.5 per cent increase, bringing the price to INR 473.55 per share (USD 5.33). On the previous close, i.e., on Friday, October 3, the firm's share price stood at INR 471.50 per share (USD 5.30), further representing an increase of 1.43 per cent from the previous day.
The Indian mining giant reported a slight boost in the metal production for Q2 FY26. In a recent filing with the BSE, the company revealed that its aluminium output increased by 1 per cent and there was also a 1 per cent rise in mined zinc metal production in India as well.
To know more about the global primary aluminium industry 2025 outlook, read “Global Aluminium Industry Outlook 2025”
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