Vedanta Ltd aims to invest USD 1.7 billion on expansion projects in FY24

In order to increase the capabilities of its different commercial operations, Vedanta Ltd expects to invest USD 1.7 billion in the current fiscal year, according to company chairman Anil Agarwal. He claimed in the company's annual report for the fiscal year 2022–2023 that it had already spent USD 1.2 billion on expansion capital expenditures in FY2023 to increase its assets and production. In FY 2024, "We anticipate allocating an additional USD 1.7 billion towards growth projects," Agarwal said.

The chairman discussed specifics of the business's projects and stated that Vedanta is already increasing its zinc and aluminium production capacities. With a goal of contributing 50% to India's total oil and gas output, he said, "our oil and gas operations, which make up close to one-fourth of the country's production, are also diversifying their reserves and resources portfolio."

Regarding the company's performance in the fiscal year that ended on March 31, FY23, he noted that during that time, Vedanta had to operate in a macro-environment that was challenging and uncertain due to a protracted geopolitical conflict, an energy crisis that followed, and harsh monetary policies used by central banks. Although it recorded revenue of Rs. 1,45,404 crore and EBITDA of Rs. 35,241 crore, it delivered good operational performance. A solid net-free cash flow of Rs 18,077 crore was produced by the corporation.

"Our impressive portfolio and capable leadership team are both reflected in our overall success. Vedanta is dedicated to developing sustainably by making sure that the communities in which we work prosper and expand alongside us, according to Agarwal. The chairman went on to say that India had a fantastic year in 2022–2023. Even while most industrialised countries saw reduced growth under high inflation, the country thrived and repositioned itself among the fastest-growing economies in the world. After achieving 9.1% growth the year before, it reported an outstanding 6.8% GDP growth in FY2023.

India's improved outlook can be attributed to the government's efforts to achieve mineral, manufacturing, and resource self-sufficiency. After the epidemic and the crisis in Russia and Ukraine, which resulted in increased global uncertainty and geopolitical tensions, its significance was highlighted.

"India's economic growth may be further fueled by this triad of manufacturing, infrastructure, and energy, as well as an emphasis on digitalization, which will also open up new business opportunities and add jobs. India's GDP is projected to double to USD 7.5 trillion between 2022 and 2031, with a significant increase in the manufacturing sector's contribution, he said.