Each demerged entity of Vedanta to become $100 billion company: Agarwal

Vedanta Group promoter Ani Agarwal said he expected each of the four demerged entities of the conglomerate to become a $100 billion company.

Vedanta has proposed to demerge its business into four distinct entities and list them separately on the exchanges. It has already received most of the regulatory approvals.

In a exchange filing, Anil Agarwal, chairman of Vedanta said: “I envision that each of the four newly demerged companies has the potential to grow into a $100 billion company. If you look at where we are headed as a global economy and the demand for such products, these companies and their products are the need of the hour”.

The demand for critical minerals and transition metals ‘continues to grow at a double-digit rate’, he said.

Post demerger, the parent company Vedanta will consist of Hindustan Zinc, Zinc International, the copper business at Thoothukudi, and the Facor business. The other companies will be Vedanta Aluminum, Vedanta Power, Vedanta Iron and Steel and Vedanta Oil and Gas.

“While Vedanta currently contributes close to 1.4 per cent of India’s GDP, there is a need for many more Vedantas to step forward to realize the sector’s true potential,” said Agarwal.

This, along with ‘appropriate’ government support will improve global competitiveness and reduce India’s import bill, Agarwal added.

“The world today is all about pure-play businesses and Vedanta’s demerger will help us achieve that. Each of our demerged entities has the potential to grow into a Vedanta by itself,” he said.

Last month, Vedanta’s creditors as well as shareholders approved the division of the mining major into five businesses, a step to simplify structure and cture and reduce debt burden. Post demerger, shareholders are slated to receive shares in five new listed entities demerged from Vedanta.

Accordding to news reports, the group’s promoters will maintain over 50 per cent stake in each of its demerged entities, after the demerger takes effect.