Vedanta Plans to Inject ₹13,226 Crore for Aluminium Capacity Expansion

Vedanta Ltd, led by Anil Agarwal, has announced an investment of ₹13,226 crore to increase its aluminium production capacity, as per the news reports. The company aims to scale from the current 2.4 million tonnes per annum (MTPA) to 3.1 MTPA by FY28. 

The expansion will take place in stages, with capacity rising to 2.75 MTPA by FY26 and 3.1 MTPA by FY28.

BALCO’s Role

Bharat Aluminium Company (BALCO), in which Vedanta holds a majority stake, will also contribute to the expansion. BALCO is expected to reach a production capacity of one million tonnes, strengthening the company’s overall aluminium output in India.

Aluminium Demand

Aluminium is the world’s second-most used metal after steel and is critical in sectors such as renewable energy, electric vehicles, infrastructure, and aerospace. Vedanta currently accounts for more than 50% of India’s aluminium output. The company expects aluminium to remain the largest contributor to its targeted $8–10 billion group EBITDA by FY28.

Cost Reduction Measures

Vedanta has reduced its aluminium production costs by about 24% over the past 11 quarters, cutting $641 per tonne. The decline has been supported by backward integration across alumina and coal, including the expansion of the Lanjigarh Refinery and access to captive coal mines. The company’s aluminium operations are fully captive, which helps maintain a stable supply and cost efficiency.

India’s aluminium consumption is projected to rise in line with economic growth and government initiatives. Programs such as Make in India, Housing for All, Smart Cities, and nationwide electrification are expected to drive demand for the metal over the coming years.

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Vedanta Share Price 

As of October 06, 2025, at 09:30 AM, Vedanta share price was trading at ₹477.45, a 1.38% increase from the previous closing price.

Conclusion

With a planned investment of ₹13,226 crore, Vedanta is preparing to expand its aluminium production capacity to meet domestic requirements and future global demand.

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