Vedanta Unveils ₹13,226 Cr to Boost Aluminium Capacity by FY28

As part of a significant initiative to solidify its position in the metals sector, Vedanta Ltd, led by billionaire Anil Agarwal, is in discussions to invest ₹13,226 crore to increase its aluminium production capacity from 2.4 million tonnes per annum (MTPA) to 3.1 MTPA by FY28, the sources indicated.

The increase is in alignment with Vedanta’s strategy to elevate aluminium to the focal point of its growth strategy and to protect its market leadership in a domestic market where its share is already over 50%.

The company is expected to increase its aluminium production to 2.75 MTPA by FY26 and to 3.10 MTPA by FY28. The sources also indicated that BALCO, a subsidiary of Vedanta, is expected to join the one million tonne capacity club.

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The integrated nature of Vedanta’s operations - which include the Lanjigarh Refinery and captive coal mines - have provided the company the ability to take the aluminium production cost down by nearly 24% (USD 641 per tonne) over the last 11 quarters. This backward integration, which is unique in the world, provides resilience to geopolitical uncertainty, and promotes low-cost sustainable manufacturing.

India's appetite for aluminium is expected to rise sharply supported by government initiatives including ‘Make In India’, ‘Smart Cities’, and 'Housing For All', as well as the country's strong GDP growth. As noted by several industry experts, aluminium is becoming the backbone of the energy transition, and Vedanta is positioned to support India's aspirations whilst remaining competitive on a global scale.