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Vedanta’s Demerger Plan: Anil Agarwal Sees $100 Billion Potential In New Companies

Vedanta’s Demerger Plan: Anil Agarwal Sees $100 Billion Potential In New Companies

  • 17.03.2025 21:54
  • ndtvprofit.com
  • Keywords: AI, Startup

Vedanta’s chairman Anil Agarwal announced a demerger plan to split the company into four independent entities, aiming to unlock shareholder value and boost India’s critical mineral supply. Each new company has the potential to reach $100 billion in value, supporting India's economic growth.

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Vedanta Limited

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The company is undergoing a demerger to create four independent companies in key sectors.

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Vedanta’s Demerger Plan: Business Insights and Market Implications

  • Vedanta chairman Anil Agarwal projects that each of the four demerged entities (aluminium, oil and gas, power, and base metals) has the potential to grow into a $100 billion business.
  • Vedanta Limited is restructuring into independent companies with strong capital structures, sector focus, and growth opportunities.
  • The demerger aims to unlock shareholder value, enhance operational efficiency, and reduce India’s import dependence on critical minerals and transition metals.
  • India is projected to become the world’s third-largest economy by 2027, with double-digit growth in demand for aluminium, copper, and zinc.
  • Vedanta has delivered a 4.7x return on investment (ROI) over the past five years and an 81% dividend yield, indicating strong financial performance.
  • The restructuring aligns with global economic trends and is expected to boost India’s competitiveness in critical mineral supply.
  • Shareholders will receive one share in each new company, maintaining their overall shareholding structure.
  • Vedanta Limited will remain a key player, holding significant stakes in Hindustan Zinc, Zinc International, and its technology businesses.
  • The demerger has received approval from shareholders and creditors, with top brokerages and analysts recognizing its potential value unlock.
  • India’s growing demand for critical minerals is expected to drive economic growth, similar to resource-rich economies like Australia, Chile, and Guyana.