On July 11, at its 54th annual general meeting in Mumbai, Vedanta Limited had announced that it would invest INR 55,000 crore across its business to increase production by about 50%. The company also said that it would fund this investment from its internal cash flows.
Addressing shareholders at the meeting, Vedanta’s chairman Navin Agarwal said, "Looking ahead, we are excited by the prospects in our businesses which include: ramp-up in zinc, lead and especially silver production from Hindustan Zinc and the benefit of a full year’s production from our Gamsberg Zinc mine in South Africa; increased production from our oil and gas business as the first phase of our projects comes on stream and continued structural changes to our cost structure in the aluminium business while increasing volumes."
Precisely, Vedanta plans to increase the production of integrated aluminium by about 50% to take it up to 3 million tonnes.
In the previous financial year, Vedanta’s capital expenditure was around INR 10,000 crore and revenue INR 93,373 crore with earnings before interest, tax, depreciation, and amortisation margin of 31% at INR 24,961 crore.
"As against global economic growth at a steady 3%, our country’s GDP is estimated to grow by 7.3% in 2019 and 7.5% in 2020, making us one of the few large emerging economies. The world is looking at India to play the role of the lead growth engine, a role China played for almost three decades. The demand potential for our resources such as oil & gas, zinc-lead, silver, aluminium, iron ore & steel, and copper is immense. Your company will be instrumental in addressing the growing demand in India and the region," said Agarwal.