News Nation Logo

BREAKING

Vedanta eyes business expansion across verticals, plans to invest massive USD 10 billion in 3-4 years

Vedanta Will Invest USD 10 Billion In The Next 3-4 Years On Expanding Business Across Verticals, Company's Chairman Anil Agarwal Said.

PTI | Updated on: 19 Feb 2017, 04:58:06 PM
Vedanta - File Photo (getty)

New Delhi:

India's metals and mining conglomerate Vedanta will invest USD 10 billion in the next 3-4 years on expanding business across verticals, company's Chairman Anil Agarwal said.

He also said the merger of Cairn India and Hindustan Zinc with Vedanta is likely to be completed in the current quarter, creating India's largest diversified natural resources firm that will compete with the likes of BHP Billiton and Vale SA.

"We have the potential to spend USD 10 billion over a period of five years; we are looking at 3,50,000 barrel of oil... to have 100,000 barrel equivalent to gas. We are looking to integrate 3 million tonnes capacity for the aluminium," the mining baron told PTI in a telephonic interview.

"We are looking to have over a million tonnes of zinc and lead, 1,000 tonnes of silver. We are looking to put up a fertiliser plant for DAP for a million tonnes in Rajasthan," he added.         

Vedanta Resources subsidiary Cairn produces over 2,00,000 barrels oil and oil equivalents per day and plans to enhance its production by another 1,00,000 barrels of oil equivalent per day.

Its operations span across India, Sri Lanka, Zambia, Namibia, South Africa, Liberia, Ireland and Australia.         

About the proposed merger of cash-rich Cairn India and Hindustan Zinc into the flagship Vedanta Group to create a global natural resources giant, Agarwal said that in all likelihood the process will be completed this quarter.

"The process is going on. It should be over this quarter.It takes time...some clearance here some clearance there...but it is almost through. Shareholders have given approval,SEBI has given approval... It should be over in this quarteronly," Agarwal said.

The merger will mark a significant step towards achievinggroup's long-term vision of a simplified group structure andcreation of long-term sustainable value, Agarwal said.

The average gross production of Cairn India Ltd, one ofthe largest independent oil and gas companies, produced203,703 barrels of oil equivalent per day (boepd) in 2015-16.

In June 2015, Vedanta Ltd (formerly known as SesaSterlite Ltd/Sesa Goa Ltd) had announced its proposed mergerwith Cairn India.

Last year, Cairn India shareholders approved merger ofthe company after LIC and Cairn Energy PLC of UK voted infavour of the sweetened merger ratio. LIC holds 9.06 per centstake in Cairn India while Cairn Energy has 9.82 per cent

Shareholders of Vedanta Ltd and LSE-listed VedantaResources had approved the merger under a revised all-sharedeal.

Under the revised offer, Vedanta will give minorityshareholders of Cairn India one equity share and fourredeemable-preference shares with a face value of Rs 10 each.The preference shares will carry a coupon of 7.5 per cent andtenure of 18 months. 

For all the Latest Business News, Companies & Commodities News, Download News Nation Android and iOS Mobile Apps.

First Published : 19 Feb 2017, 04:55:00 PM

Related Tags:

Vedanta

Videos