Vedanta is India’s largest aluminum manufacturer.
Anil Aggarwal -led Vedanta Limited is planning to increase its aluminum production capacity from 2.4 million tonnes annually (MTPA) to 3.1 million tonnes annually. For this, the company will invest Rs 13,226 crore. This target is planned to be completed by FY 2028 (FY28).
According to media reports, Vedanta Limited is placing aluminum business at the center of its growth strategy. Under this expansion scheme, the company will invest Rs 13,226 crore in the next few years. Aluminum after steel is the second most commonly used metal in the world. Now it is playing a very important role in areas like electric mobility, renewable energy, urban structures and aerospace.
Vedanta’s largest share
Vedanta is India’s largest aluminum manufacturer and holds more than 50% share in the domestic market. The company aims to remain the largest contributor in the target of $ 8 to 10 billion (EBITDA) at the group level by FY28. According to reports, the company’s aluminum capacity will reach 2.75 million tonnes per annum by FY26 and 3.1 million tonnes per annum by FY28.
Reduction in cost of production
Vedanta’s Balco (India Aluminum Company), which has a majority stake of the company, will soon join 1 million tonnes of production capacity club. The company has paid special attention to reduce costs. In the last 11 quarters, aluminum production costs have decreased by about 24% (about $ 641 per ton). This reform has been possible due to the company’s Lanjigarh Refinery expansion and integration of coal mines.
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Aluminum demand will increase in India
Vedanta’s aluminum business is completely based on captive operations. This is not common globally, but this helps the company to strengthen and maintain production at low cost in political instability environment. Due to the rapid increase of GDP in the coming years in India, there is a huge increase in demand for aluminum. Many schemes of the government such as Make in India, 100% rural electrification, Housing for All and Smart Cities Missions will further increase this metal consumption in the country.