Vedanta Group Plans to Infuse $20 Billion in the Next 4 Years

Vedanta Limited is an Indian multinational mining company headquartered in Mumbai, with its main operations in iron ore, gold and aluminium mines in Goa, Karnataka, Rajasthan and Odisha. The company primarily operated in Goa and Karnataka, it has gradually expanded its operations in recent years to Odisha, Rajasthan, Chhattisgarh, Tamil Nadu, Punjab, Jharkhand, Gujarat and Andhra Pradesh. The group is now all set to infuse $20 Billion in the next 4 years across all its business in India.

What Has Been Said By Anil Agarwal?

The company had an event on May 1 for the onboarding of Manoj Bajpayye to its Nand Ghar initiative. Nand Ghar is a collaboration between Vedanta and the Ministry of Women and Child Development for the development of modern aanganwadis as Nand Ghars across India.

Anil Agarwal, Chairperson of the Vedanta Group has said that the group is focusing on investments in the glass and semiconductor business, intensifying investments on the electronic side, among other businesses of the group. He further said that the growth in India is a notable double-digit growth and people are always interested in investing in such a country.  

How Fair Do the New Investments Sound?

As the group Chairman Anil Agarwal mentioned, these investments will be focused on technology, semiconductor and glass businesses apart from the other businesses in which the company is already engaged. He also added that the group has chosen Gujarat for the semiconductor segment and is now searching for a good partner to continue ahead. He further added that they are planning to undertake glass building capacity locally.

Concerns regarding the current Debt Position of the Group

Anil Agarwal said that the group’s current debt position stands at $12 Billion at present and this seems manageable to him. He also added the group has never defaulted on any of its debt repayment commitments. The Group is also in plans to deleverage the group by $3 Billion in the next three years.

Conclusion: This $20 Billion road map ahead sounds pretty good, The only thing that concerns the market about Vedanta is its Debt position. If the group manages both this deleveraging plan and the $ 20 billion plans effectively and efficiently then The group will successfully expand itself. The road map ahead looks great for the company with plans of demerging, deleveraging and further investments. The stock of Vedanta Ltd. currently trades at Rs.402.20 a piece near its 52-week high of Rs.409.95.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.