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Our 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 1st 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 (%)
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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, showing strong signs of recovery from 2020, registered a growth of 10.4% over the course of 2021 and 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
CONSUMPTION
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*All commodity and power capacities rebased to Copper equivalent capacity (defined as production x commodity price / copper price) using average commodity prices for FY2022. Power rebased using FY2022 realisations, Copper custom smelting production rebased at TC/RC for FY2022, Iron ore volumes refers to sales with prices rebased at realized prices for FY2022
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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 start-ups 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, also enabling regular production monitoring, tracking of KPIs in terms of maintenance and HSE, and in bettering overall predictability.
Another initiative in this direction is Project Pratham, which focuses on significantly improving volume, cost and 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 the start-up culture through the Spark programme.
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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.
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Our operating performance, coupled with optimisation of capital allocation, has helped strengthen our financials.
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Actions taken in FY2022
We have adopted the Incident Cause Analysis Method (ICAM) for incident investigation to avoid repeat accidents and promote higher reporting for all incidents.