Vedanta demerger: Anil Agarwal sees $100 billion potential in each biz; hints at Vedanta Resources relisting

Vedanta Chairman Anil Agarwal on Monday, June 15, outlined an ambitious growth roadmap for the group's newly demerged businesses, saying each vertical has the potential to become a $100 billion opportunity ($100 billion revenue) over time.

The business tycoon also hinted at a possible overseas relisting of parent Vedanta Resources, though he said such a move is unlikely before the next three years.

It must be noted that Vedanta Ltd is the primary Indian subsidiary of the UK-incorporated holding company Vedanta Resources. Both operate as major diversified natural resource conglomerates with extensive portfolios in zinc, aluminium, oil and gas, iron ore, and power.

Agarwal said relisting of Vedanta Resources, which was delisted from the London Stock Exchange (LSE), is not an immediate plan but may be completed in three years' time.

"I'm very pleased, we have delisted our company in London, which was an FTSE 100 company. It's (listing) not on the card, but there is a potential that we can list, relist that company, maybe in America, maybe somewhere else, can create a phenomenal value," Agarwal said in an interview with PTI.

Agarwal also said that the group company is currently having a revenue of $23-24 billion, and aims to take it to $50 billion.

Vedanta Resources delisting details

Vedanta Resources was delisted from the London Stock Exchange (LSE) in October 2018 after founder and chairman Anil Agarwal acquired the remaining shares he did not already own and took the company private.

Agarwal, as per available reports, argued that the public listing was not adequately reflecting the company's value and that operating as a private entity would provide greater flexibility to pursue long-term strategic plans, simplify the corporate structure, and reduce regulatory and listing-related costs.

Vedanta demerged entities list on bourses

Vedanta Ltd group's four demerged entities -- Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel -- made their stock market debut on Monday.

Shares of Vedanta Aluminium Metal began trading at ₹527 and further hit a high of ₹538 on the BSE. Vedanta Power was listed at ₹41.30 and further climbed to ₹43.35. Shares of Vedanta Oil and Gas started trading at ₹39 and scaled to a high of ₹40.95. Vedanta Iron And Steel shares are listed at ₹22.25.

Vedanta demerger: A brief look back

Vedanta's demerger was approved by the National Company Law Tribunal (NCLT) in December last year.

Under the 1:1 approved demerger scheme, shareholders will receive one share of each demerged company for every one share held in the currently listed Vedanta Ltd.

The rationale behind the demerger

Vedanta had earlier said that the demerger will help in simplifying Vedanta's corporate structure with sector-focussed independent businesses and provide opportunities to global investors, including sovereign wealth funds, retail investors, and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India's remarkable growth story through Vedanta's world-class assets.

Agarwal said the company is pursuing large-scale capacity expansion across business verticals to capitalise on India's growing demand for natural resources, industrial metals, and energy.

Aluminium business

In aluminium, Vedanta plans to significantly ramp up output, with Agarwal pointing to low domestic consumption as a key long-term growth trigger.

"Per capita consumption is only 3 kilos in India, whereas the worldwide is 30 to 40 kilos," Agarwal said, describing aluminium as "the most critical metal for our development".

Oil & Gas business

In oil and gas, Agarwal said the company has mapped reserves capable of materially lifting production through deeper exploration.

"We have 5,00,000 barrels in three years' time. We have seen, we have mapped out our resources. We have resources which can produce 5,00,000 barrels or more," Agarwal said.

Steel business

The company is targeting 15 million tonnes of steel production, supported by captive iron ore and coking coal resources.

"Steel, we are looking to produce 15 million tonnes. We are very comfortable making 15 million tonnes. We have all the infrastructure," Agarwal said.

Agarwal further outlined a long-term nuclear power strategy, saying 20-25% of the company's future power generation capacity could eventually come from atomic energy.

What Vedanta Ltd holds now after the demerger

Following its five-way restructuring, the residual Vedanta Limited continues to function as the parent company, primarily housing the group’s zinc and copper businesses. Its key holdings include a controlling stake in Hindustan Zinc Limited, along with Zinc International, ferro-chrome assets, and other incubator businesses.

In its business update shared recently, Vedanta said that the post-demerger Vedanta Limited is emerging as a focused critical minerals and strategic metals company, retaining some of the group’s most strategically important assets across zinc, silver, copper, ferrochrome, nickel, and critical minerals.

Industrial metals outlook

In its latest business update, "Insights By Vedanta", Vedanta said that following the West Asia conflict, global markets are once again confronting the impact of energy-led inflation.

Vedanta said that the ripple effects are now becoming visible across manufacturing supply chains, chemicals, industrial inputs, transport, and infrastructure-linked sectors, reinforcing how closely industrial growth remains tied to commodity and energy markets.

However, even amid the near-term volatility, long-term industrial themes remain intact, Vedanta said.

"Infrastructure expansion, manufacturing growth, electrification, renewable energy deployment, and energy-transition investments continue sustaining structural demand across industrial metals and critical minerals," the company said.