India gains global prominence

FY 2023 has been an incredible year for India. The country outperformed and repositioned itself amongst the world’s fastest-growing economies, even as most developed nations faced slower growth amidst high inflation. It posted an impressive 6.8% GDP growth in FY 2023, after delivering 9.1% growth in the previous fiscal year. It is indeed encouraging to witness this growth story unfold with a visible supply chain shift in India’s favour and its manufacturing prowess getting due recognition globally.

India’s improved outlook in many ways is attributable to the government’s quest for self-reliance in manufacturing, minerals and resources. Its importance was accentuated in the aftermath of the pandemic and the Russia-Ukraine conflict, which saw heightened uncertainties and geopolitical tensions globally. Several countries have found themselves precariously positioned, given their dependence on others for key resources. Reassessment of supply chain strategies globally was thus inevitable. Already “China Plus One" policy is gathering momentum as companies and countries seek to diversify their reliance beyond China to other destinations.

India finds itself in an advantageous position, particularly in creating a resilient supply chain and indigenous manufacturing. Energy security and world-class infrastructure will be key to the success of this journey. This trinity of manufacturing, infrastructure and energy along with a focus on digitalisation can continue to propel India's economic growth, unlock new business opportunities and create jobs. It is expected that India's GDP will double to US$7.5 trillion during 2022-2031 with a substantial rise in the contribution from manufacturing.

The Union Budget 2023 also seems to have hit the right notes by prioritising green and digital economies and infrastructure creation through increased capital expenditure allocations. It further focusses on giving a boost to MSMEs with a revamped credit scheme.

The Indian economy remains on a strong footing, with unprecedented levels of optimism and multiple advantageous factors at play. The determined implementation of various positive policies and programmes will drive India’s exceptional growth story for years to come.

Vedanta for a self-reliant India

As India’s largest diversified natural resources company and one of the largest corporations globally with businesses spanning metals, mining and energy, Vedanta has a distinct advantage in India’s journey of self-reliance. Our mining expertise powered by best-in-class technology and talented people along with a robust value-added portfolio positions us attractively to harness the evolving growth opportunity.

We envisage a greater role for us in the nation’s growth story and in making India self-reliant for minerals and energy - an imperative given the growing population and rising industrial activity. Vedanta is already expanding its aluminium and zinc capacities. Our oil and gas operations, which account for nearly one-quarter of India's production, is also diversifying its reserves and resources portfolio towards a vision of contributing 50% to India’s total Oil and Gas production. We have already invested US$1.2 billion in the form of growth capex in FY 2023 to augment our assets and production. We envisage committing another US$1.7 billion in FY 2024 towards growth projects.

Delivering all-round performance

This year, we operated against a difficult and uncertain macro-environment, driven by prolonged geo-political conflict, subsequent energy crisis and aggressive monetary policies adopted by central banks. Our teams delivered excellent operating performance despite the challenges posed by uncertain commodities markets and supply chain realignments. We reported a strong set of financial results, ₹ 1,45,404 crore in revenue and ₹ 35,241 crore in EBITDA. We have generated a healthy net-free cash flow of ₹ 18,077 crore. This all-round performance is a testament to our outstanding portfolio and accomplished leadership team.

Vedanta is committed to growing responsibly, by ensuring that the communities in which we operate, thrive and grow with us. Our flagship programme ‘Nand Ghar’ has been working extensively to strengthen the Aanganwadi ecosystem in India and bridge the urban-rural gap with best-in-class services. We now have Nand Ghars across 14 states which have collectively uplifted 3.2 lakhs women and children through education, nutrition and healthcare.

In continuation of our ‘net zero’ journey, we have signed renewable energy power delivery agreements (PDAs) under the Group’s captive policy during FY 2023. We have also moved a step closer towards realising our philosophy of “zero harm, zero waste, zero discharge” with three more of our business sites being declared water positive.

Our ESG efforts have led to significant improvements in our position across key external ratings platforms, like Dow Jones Sustainability Indexes, Sustainalytics, MSCI and CDP. Vedanta is now ranked #6 among the top 10 diversified metal and mining peers on the Dow Jones Sustainability Index. Further, Vedanta and its various group companies received multiple awards in finance, operational excellence, CSR and HR categories across various recognised platforms.

We reported a strong set of financial results, ₹ 1,45,404 crore in revenue and ₹ 35,241 crore in EBITDA. We have generated a healthy net-free cash flow of ₹ 18,077 crore. This all-round performance is a testament to our outstanding portfolio and accomplished leadership team.