Vedanta Chairman Anil Aggarwal has said that the proposed demerger of various businesses will transform the company from an asset manager to an asset owner. Vedanta, which is associated with various businesses, represents over 15 commodities. By demerger of the units, independent businesses dealing in aluminium, oil and gas, power, steel and ferrous materials and base metals will emerge. The existing zinc businesses and the new businesses incubated will remain under Vedanta Limited. Let us also tell you what will be the future plan after the demerger of Vedanta.
The company is undergoing a change.
Aggarwal said in a new report that our expansion steps are in line with our plan to introduce changes in our business model. By separating our various businesses representing over 15 properties, we will move from an asset manager to an asset owner. He said that as the company goes through a transformation period, Vedanta is focusing on strengthening its asset base so that it can become a global leader in each of its sectors.
Approval received from lenders
Natural resources company Vedanta Ltd has proposed a plan to demerge the companies at the National Company Law Tribunal (NCLT) after obtaining approval from lenders. The process to implement this plan is expected to be completed by the end of the current financial year. Vedanta Limited, a subsidiary of Vedanta Resources, has received approval from 75 per cent of secured lenders for its proposal to demerge its businesses. The business demerger will help simplify the corporate structure of the company. In addition, global investors are also expected to come forward for direct investments.
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June quarter figures
The company is investing $1.9 billion as capital expenditure to accelerate its business from fiscal year 2023-24. Vedanta’s consolidated net profit rose 36.5 per cent to Rs 3,606 crore for the quarter ended June 30, 2024. The company’s earnings rose on the back of better margins and cost reduction. The company posted a net profit of Rs 2,640 crore in the same period last year.
