The world is changing. Vedanta is building for what comes next.
The next phase of global growth will be shaped by AI,
electrification, energy security, infrastructure and advanced manufacturing. Behind each of
these shifts is the growing need for the metals and minerals that make them possible.
With a portfolio spanning zinc, copper, silver, critical minerals,
ferrochrome, and display
glass, Vedanta Limited is positioned at the intersection of these macroeconomic
trends. This
gives our investors access to the resource intensity of India's
growth as well as the global
race for resource security, through one multi-metal, multi-mineral investment
proposition.
01
The future will be metal-intensive.
AI is driving demand for data centres, power infrastructure and connectivity.
Electrification is increasing the need for copper and other essential metals.
Renewable
energy requires vast amounts of metal-intensive infrastructure. Advanced
manufacturing,
mobility and digital technologies are creating demand for specialised minerals and
materials. These are structural shifts, not short-term commodity
cycles.
Vedanta Limited is the world's largest integrated zinc producer and among the world's
top
10
silver producers. In India, we are the second-largest copper producer and the only
nickel
producer, while building towards leadership in ferrochrome. Through Avanstrate, we
are
one
of the world’s only 4 display glass producers. Our operations in the middle east
also
gives
us a foothold in gold as well.
We offer something few Indian companies can: diversified exposure across base
metals,
precious metals and specialty alloys.
02
Capability advantage, built with decades of expertise.
In natural resources, a mineral deposit is only the starting point. Scale is
difficult to build and even harder to replicate.
Creating a competitive mining and metals business requires exploration, resource
development, approvals, infrastructure, processing and refining capabilities,
technology, operating expertise and deep customer relationships.
Vedanta has built these capabilities over decades across multiple metals and
geographies. Our 25+ year reserves & resource base provides depth for sustained
operations, while our integrated operating model, technology partnerships, people
and institutional knowledge give us the ability to develop resources at scale.
03
Growth, that translates into shareholder value.
Vedanta’s growth opportunity is anchored in an established operating and earnings
base.
Underlying profitability has grown 120% over two years, supported by
stronger
operations, productivity, technology, integration and capital allocation. We have
invested approximately ₹28,000 crore in growth capex across FY25 and
FY26, while
continuing to invest in the capabilities and infrastructure needed for our next
phase of expansion.
Our focus continues to be on improving the economics of existing businesses through
scale, efficiency, decarbonization and technology, while investing behind future
growth. This has translated into unparallelled shareholder value.
04
India’s growth, tied to its resource-security.
India is investing at scale in infrastructure, manufacturing, energy, mobility,
electronics and technology. This ambition will require reliable access to the
resources that underpin these industries.
India’s National Critical Mineral Mission recognises the need to build a resilient
domestic value chain spanning exploration, mining, processing and recycling. That
makes critical minerals and resource security increasingly strategic.
Vedanta’s multi-metal and multi-mineral resource expertise with decades of
experience in exploration, mining, processing and refining puts it at the heart
of India’s mission for resource security.
05
Building a position in critical minerals the world is racing to secure.
Critical minerals are essential to modern industry, clean energy, electronics,
defence and advanced technologies. But their supply is vulnerable:
resources are geographically concentrated, while processing and refining
capabilities are often concentrated in even fewer markets.
Vedanta has already established an early foothold in this opportunity, securing 10
critical and strategic mineral blocks across resources including gold, copper,
manganese, nickel-chromium-PGE, tungsten, graphite, vanadium, rare earth
elements and potash in India. Exploration is underway across several of
these blocks.
06
Eyeing a $100 billion future.
Vedanta brings together an established earnings base, a differentiated resource
platform, decades of operating capability, exposure to multiple structural growth
trends, an early position in critical minerals, and presence in some of the world's
fastest-growing major economies. Together, they give us multiple avenues for
competitive growth – through volume, productivity, technology, integration,
capital allocation and new resource development.
But our ambition goes beyond growing the businesses we have today, and towards
expanding the resource base from which our next era of growth can emerge.
So, we are building a larger, more diversified and more strategically important
company – one that participates in the resources India needs, the industries the
world is building and the technologies shaping the future. That is the opportunity
we see ahead.
World-class natural resources powerhouse with low cost,
long-life and diversified asset base
Vedanta’s large, diversified asset portfolio, with an
attractive
cost position in many of its core businesses, enables us to deliver strong
margins and free cash flows through the commodity cycle. We have an
attractive
commodity mix, with strong fundamentals and leading demand growth and remain
keenly focused on base metals and oil. We also maintained our 1 st quartile
cost
positioning globally, across key segments such as Zinc and Aluminium, led by
our
resolute focus on structural cost reduction and operational efficiencies.
Vedanta continued its strong growth momentum and witnessed
steady
volume performance across all businesses, with aluminum and zinc delivering
record performance.
Demand 2021-2030 CAGR
Well placed to contribute to and capitalise on India’s
growth
and benefit through the cycle with attractive commodity mix
India is our core market, and it has a huge growth potential,
given that the current per capita metal consumption is significantly lower
than
the global average. Also India’s GDP, which registered a growth of 10.4%
over
the course of 2021, showing strong signs of recovery from 2020, is expected
to
grow 8.2% in the current financial year (IMF; April 2022 estimate) .
Urbanisation and industrialisation, supported by government initiatives on
infrastructure and housing, a strong response to COVID-19, as well as
increase
in capital outlay announced in the Union Budget 2022-23 will continue to
drive
strong economic growth and generate demand for natural resources.
Vedanta’s unique advantages:
Operating a wide and scalable portfolio of
commodities
that grow the nation
A strong market position as India’s largest
base
metals
producer and largest private sector oil producer
An operating team with an extensive track record
of
executing projects and achieving growth in the Indian geography
Proven track record of operational excellence with high
productivity and consistent utilisation rates
Our management team has diverse and extensive sectoral and
global
experience. Drawing from this deep insight, the team ensures that operations
are
run efficiently and responsibly
Disciplined approach to development; growing our production
steadily across our operations with focus on operational efficiency and cost
savings
Since our listing in 2004, our assets have delivered a
phenomenal
production growth
Focused on digitalisation and innovation to drive
efficiency
and resilience
To optimise efficiency and ensure future-readiness in
everything
we do, we are actively investing in Industry 4.0 technologies, and
mainstreaming
a digital-first culture throughout the organisation. This has helped achieve
a
100% digitally literate workforce, consistent eye on tech-led innovation,
strong
collaboration with startups and partners and a continued unlocking of
efficiency
potential across our integrated value chain.
Our key initiative in this direction has been the Disha
programme, which aims to transform Vedanta into a data driven organisation
by
developing digital dashboards and applying analytics for different
verticals,
helping the senior management track progress, gather insights, identify
issues
and bottlenecks proactively. This results in better planning, mitigation and
closing the decision loop faster, and in enabling regular production
monitoring,
tracking of KPIs in terms of maintenance and HSE, and in bettering overall
predictability.
Another initiative in this direction in Project Pratham,
which
focuses on significantly improving volume, cost and improving ease of doing
business. This is implemented through global partners by bringing new
emerging
technologies across the value chain of Vedanta Industry 4.0 framework. Key
objectives of this project include EBITDA improvement, gains on intangibles
and
reducing overall carbon footprint. Apart from our internal digital
transformation initiative, we are also leveraging the latest in technology
by
integrating start-up culture through the Spark programme.
Disciplined capital allocation framework with emphasis on
superior andconsistent shareholder returns
We have unveiled a structured capital allocation policy that
prioritises growth and shareholder returns. The policy aligns to three
streams
across capital expenditure, dividend policy and selective inorganic
growth. It will be driven by a consistent, disciplined, and balanced
allocation
of capital with long term balance sheet management, optimal leverage
management
and maximisation of total shareholder returns.
Robust financial profile with improving ROCE, increasing
cash
flow and a stronger balance sheet
Our operating performance, coupled with optimisation of
capital
allocation, has helped strengthen our financials.
Revenues of ₹131,192 crore and EBITDA of ₹45,319
crore
Strong ROCE of 30%
Deleveraging and extension of our debt
maturities
through proactive liability management exercises
Strong and robust FCF of ₹21,715 crore
Cash and liquid investments of ₹32,130 crore
A strong balance sheet, with respect to Net
Debt/EBITDA (0.5x)
and gearing, compared to our global diversified peers
Interim dividend of ₹16,728 crore paid in FY2022
Committed to ESG leadership in the natural resources sector
Committed to being the lowest cost producer in a
sustainable
manner.
Committed to incorporating global best practices
to
transform
communities, planets and workplace in alignment to our Group objective
of
‘Zero
Harm, Zero Waste and Zero Discharge’.
Implemented critical risk management across the
business to
improve workplace safety
Committed to promoting diversity in all forms at
the
workplace
and building an inclusive work culture
Committed to attaining Net Carbon neutrality by
2050
and reducing
absolute emissions by 25% by 2030 from 2021 baseline. Decarbonize 100%
of
our
Light Motor Vehicle (LMV) fleet by 2030 and 75% of our mining fleet by
2035.
Promoting operational efficiency, changing fuel mix, switching to
renewable
exploring greener businesses opportunities and developing low carbon
product
portfolio are the levers used.
Committed to water efficiency and achieving net
water positivity
by 2030.
Committed to keeping community welfare at the
core
of decision
making by implementing global best practices and becoming a developer of
choice.
Committed to positively impacting the lives of
100
million women
and children through skilling and education, nutrition and healthcare
initiatives.
Aims to improve transparency and completeness of
disclosure in
alignment with international best practices like GRI, TCFD etc
Action taken in FY22
Electric mobility: Jharsuguda partners with GEAR
India to supply 23 e-forklifts; deployed 50+ EVs at HZL and ESL together
10-year MoU signed with TERI to develop
implementation programs to further our ESG vision
Signed PDA for 580 MW RE - a significant step
towards 2.5 GW RE commitment
Launched green Aluminium under the brands
‘Restora’
& ‘Restora Ultra’ to usher new era of green metals
Collaboration with TUV-SUD to develop roadmap
for
our ‘Net Water Positive’ initiative
A 1st Fly ash rake from Jharsuguda dispatched to
cement plant
Commenced Ash backfilling in one of the coal
India’s
open-cast mine in Mar’22
Used 17kt biomass in HZL; committed to using 5%
biomass in our thermal power plants
We have adopted the Incident Cause Analysis Method ICAM for
incident investigation to avoid repeat accidents and promote higher
reporting
for all incidents.