In today’s ever-evolving world, where transformation is key, we understand the imperative to continuously transform for good and invest in tomorrow to outperform
Anil Agarwal
It’s with immense pride that I reflect on another remarkable year in Vedanta’s evolution as a world-class Indian multinational. As we embark on the next stage of our multi-year growth trajectory, aimed at unleashing value for all stakeholders, I extend my deepest gratitude to each of you. You are the pillars of our success, propelling us towards building a futuristic organisation rooted in India’s progress.
In today’s ever-evolving world, where transformation is key, we understand the imperative to continuously transform for good and invest in tomorrow to outperform. Join me as I unveil our vision for the next phase of growth, building a Stronger Vedanta– a value-focussed, future-ready, and purpose-driven institution that will stand the test of time.
India, under the leadership of a visionary government, is on an expressway of progress. The optimism surrounding the Indian economy is unparalleled, fuelled by robust manufacturing activity, thriving private consumption and commendable strides in infrastructure development. The buoyancy observed in the stock markets and the influx of foreign direct investments solidify India’s rise as a global power and a critical long-term market. The estimated GDP growth of ~8.2% in FY 2023-24 supports the narrative of India’s flourishing growth trajectory.
Going by the prevailing macro indicators, India’s growth momentum is poised to further accelerate in the years ahead. The government’s manufacturing and infrastructure push and aggressive investments in the green economy are catalysing a new era of progress and development for the country. International Monetary Fund forecasts the Indian economy to grow the fastest and ascend to the world’s third-largest economy position by 2027, with GDP expanding at a projected CAGR of ~7% during 2023-2030. The dream of witnessing India enter a golden era once again is within reach.
As the economic growth engine gathers steam, the demand for commodities is set to surge. Equipped with a unique portfolio, ranging from oil and gas to essential metals, Vedanta is strategically positioned to seize the momentum, while aiding the nation’s goal of reaching a US$ 30 trillion developed economy by 2047 and achieving self-reliance. Our recent foray into Electronics and display business exemplifies our commitment to India’s vision of self-sufficiency in chip-making. This exciting venture opens doors to the thriving Indian electronics market, predicted to grow at a staggering 43% CAGR between 2023 and 2026, reaching a monumental US$ 300 billion.
The commissioning of Train 1 at Lanjigarh refinery, adding 1.5 MTPA of capacity, marks a significant milestone, and other projects are steadily progressing.
Looking ahead, our unwavering commitment to substantial capex projects worth US$ 6 billion for expanding our capacities across the businesses and achieving vertical integration in Aluminium business will be a cornerstone of our future growth. The commissioning of Train 1 at Lanjigarh refinery, adding 1.5 MTPA of capacity, marks a significant milestone. Other projects Aluminium, Zinc India, Iron and Steel and Ferrochrome businesses are steadily progressing. We are on track to produce 90% value‑added aluminium products and alloys and securing 100% captive alumina, bauxite and coal supplies along with 3 MTPA aluminium.
Furthermore, we are actively pursuing various strategic initiatives to unlock the immense value within our diversified conglomerate, positioning ourselves for continued success in evolving market landscapes.
As a visionary organisation, Vedanta has always changed for the better. Having built a US$ 50 billion diversified conglomerate over four decades, we now aim to propel our journey with the proposed demerger of business into six independent, pure-play companies. This strategic move will simplify the corporate structure, unlock greater value and attract targeted investment for the expansion and growth of each business.
The demerger will be a simple vertical split, with shareholders receiving one share in each demerged listed company for every share of Vedanta Limited they hold. Each entity will have greater freedom to grow to its potential, led by independent management, capital allocation and niche strategies as per their customers, investment, and end markets. Our goal is to see each entity replicate the success of today’s Vedanta Limited.
We are committed to financial prudence and fortifying our capital management framework to proactively meet the expectations of our investor community. I would like to bring your attention to the significant progress our holding company Vedanta Resources has made in reducing debt, having deleveraged by US$ 3.7 billion in last two years against our commitment of US$ 4 billion in three years. Thanks to your overwhelming support, Vedanta Resources also successfully restructured its outstanding bonds totalling US$ 3.2 billion, extending their maturity up to FY 2028-29 and easing off the liquidity pressure. This newfound liquidity flexibility allows us to channel cash flows to important capex projects.
These decisive moves demonstrate our commitment to a debt-free and value‑accretive future for our stakeholders.
In FY 2023-24, India stood out globally as a market characterised by both growth and stability. Our team, backed by strong leadership, did a commendable job in capturing the opportunity, despite commodity prices exhibiting mixed performance, influenced by global market dynamics and sector-specific demand trends. Through a sharp focus on operational performance, strategic investments and commitment to innovation and sustainability, we achieved significant success. Our financial report reflects this, with revenues reaching ₹ 1,41,793 crore and EBITDA at ₹ 36,455 crore. Notably, we also generated a healthy free cash flow (post capex) of ₹ 11,427 crore, indicating the strength of operations.
Over the past two years, we have deleveraged Vedanta Resources by US$ 3.7 billion against our commitment of US$ 4 billion in three years.
EBITDA
REVENUE
As a responsible corporate committed to sustainable development, ESG remains central to Vedanta’s growth plans and investments. Our efforts continued to yield tangible outcomes during the year under review. I am thrilled to announce some big wins in the S&P Global Corporate Sustainability Assessment 2023. Vedanta and Hindustan Zinc Limited (HZL) secured the third and first positions respectively in the metal and mining sector, becoming the only two Indian companies in the top 10. Additionally, Vedanta Aluminium took the top spot in its aluminium peer group. The accomplishment reflects Vedanta’s unwavering commitment to sustainable business practices and responsible corporate citizenship, led by our Transforming for Good ESG strategy.
Vedanta’s exceptional progress on various ESG goals during the year was witnessed in other milestone achievements. Advancing towards net zero, we have begun construction for 838 MW of renewable energy round‑the-clock (RE RTC). We have rolled out industry-leading policies, such as an EV purchase policy for all our employees, and all our business units have plans in place to ensure 100% light mobility vehicle electrification by 2030. Jharsuguda unit and HZL have also begun trials for the electrification of heavy mobility and other vehicles from the mining fleet.
During the year, we continued our track record of distributing one of the highest dividend and being on the highest taxpayers in India (₹54,402 crore) in FY 2023‑24).
Our water positivity ratio improved to 0.7 during the fiscal, with 2.7% reduction in freshwater consumption.
In our commitment to diversity, equity and inclusion, women’s representation improved to 20% in FY 2023-24, enabled by programmes to place them in STEM and leadership roles. We are proud to have expanded our definition of diversity beyond gender, with more than 36 members from the transgender community now part of the Vedanta team. A revolutionary parenthood policy was introduced for women and LGBTQIA+ employees to emphasise that parenthood is not a challenge for professional life but a transformative phase. The policy allows options for maternity leave, work from home, flexible working hours and even a 12-month sabbatical with job security.
As you are aware, we follow extremely focussed CSR policies as part of our community support programme. During the year, our efforts benefited nearly 17.4 million women and children across India. The second edition of the Vedanta Delhi Half Marathon set yet another milestone, as a record 35,000+ participants ran in support of the #RunForZeroHunger cause, raising 5 million meals for children in the process. This is a true example of the immense power of participative sport to bring together people from all walks of life for fun, fitness and, most importantly, a cause.
Ethics, good governance and transparency are core to Vedanta’s business values and integral to its ESG philosophy. During the year, we continued our track record of paying one of the highest dividends (₹ 50 in FY 2023-24) and being among the top taxpayers in India (₹ 54,402 crore in FY 2023-24). We also made considerable efforts towards enhancing transparency – a testament to our commitment to responsible practices. This is evident in Vedanta’s alignment with multiple global frameworks and publication of disclosures beyond statutory requirements.
As we move ahead, we will endeavour to continue pursuing the path of steady and progressive performance, which we have stayed consistently on through the years. While we can look back with pride on our accomplishments and initiatives, it is the future that we are more excited about.
FY 2024-25 will be a transformative year for Vedanta on many fronts. The expected completion of most expansion projects and the focus on disciplined growth, operational excellence and exploring opportunities along the value chain, position us for greater success on all fronts including volumes, revenue, cost efficiency and bottom line. Beyond that, we have set targets that reflect our pursuit of sustainable growth and further improving our balance sheet integrity. We seek to further deleverage Vedanta Resources by US$ 3 billion over the next three years. Our team is energised and the fundamentals supporting the sectors in which we operate remain robust, providing an optimistic outlook. We believe that the key growth projects that are on the horizon, along with the expected acceleration in commodity prices, will drive future profitability.
On behalf of the entire Board, I extend my heartfelt gratitude to all the stakeholders for their continuous support, the driving force behind our success. Vedanta remains committed to executing strategic priorities to create long-term value for all.
Best regards
