Vedanta Ltd to invest $1.7 billion in FY24 on growth projects, says Anil Agarwal

Vedanta Ltd plans to invest $1.7 billion in the current financial year to expand the capacities of its various business operations, its Chairman Anil Agarwal has said.

It has already invested $1.2 billion in the form of growth capex in FY2023 to augment its assets and production, he said in the company's Annual Report for financial 2022-23.

"We envisage committing another $1.7 billion in FY 2024 towards growth projects," Agarwal said.

Sharing details of the company's projects, the chairman said Vedanta is already expanding its aluminium and zinc capacities.

"Our oil and gas operations, which account for nearly one-quarter of India's production, is also diversifying its reserves and resources portfolio towards a vision of contributing 50 per cent to India's total Oil and Gas production," he said.

On the company's performance in the fiscal ended March 31, FY23, he said in the last year, Vedanta operated against a difficult and uncertain macro-environment, driven by prolonged geo-political conflict, subsequent energy crisis and aggressive monetary policies adopted by central banks.

However, it delivered excellent operating performance and reported Rs 1,45,404 crore in revenue and Rs 35,241 crore in EBITDA. The company generated a healthy net-free cash flow of Rs 18,077 crore.

"This all-round performance is a testament to our outstanding portfolio and accomplished leadership team. Vedanta is committed to growing responsibly by ensuring that the communities in which we operate, thrive and grow with us," Agarwal said.

The chairman further said 2022-23 has been an incredible year for India. The country outperformed and repositioned itself among the world's fastest-growing economies, even as most developed nations faced slower growth amidst high inflation. It posted an impressive 6.8 per cent GDP growth in FY2023 after delivering 9.1 per cent growth in the previous fiscal.

India's improved outlook in many ways is attributable to the government's quest for self-reliance in manufacturing, minerals and resources. Its importance was accentuated in the aftermath of the pandemic and the Russia-Ukraine conflict, which saw heightened uncertainties and geopolitical tensions globally.

"This trinity of manufacturing, infrastructure and energy along with a focus on digitalisation can continue to propel India's economic growth, unlock new business opportunities and create jobs. It is expected that India's GDP will double to $7.5 trillion during 2022-2031 with a substantial rise in the contribution from manufacturing," he said.