Vedanta, a prominent player in the Indian industrial landscape, is determined to conclude the sale of its steel assets by March 2024, as confirmed by the company’s Chairman, Anil Agarwal. This announcement follows Vedanta’s recent decision to restructure its business into six distinct entities.
In a candid interview with CNBC-TV18, Anil Agarwal shed light on the company’s strategic move to divest its steel assets within a specific timeline. Agarwal emphasized that the response to the steel and iron business would significantly contribute to reducing Vedanta’s debt burden. He also revealed that Vedanta has meticulously aligned its financial resources to meet upcoming repayment obligations, with maturities scheduled as early as January 2024.
The steel business, which accounted for 4 percent of Vedanta’s full-year operating profit, encompasses various facets, including the domestic iron ore business, Liberia assets, and ESL Steel Ltd.
Agarwal elaborated that Vedanta is currently exploring both refinancing and repayment options regarding its outstanding dues. This approach underscores Vedanta’s commitment to managing its financial obligations efficiently while optimizing its portfolio for future growth.
Vedanta’s recent decision to split its business into six separate entities signifies a significant strategic shift. The move aims to “unlock value and attract big-ticket investment,” according to the company’s official statement. The board has granted approval for a “pure-play, asset-owner business model” that will ultimately result in the creation of six distinct publicly-listed companies.
The six entities resulting from this restructuring are as follows: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Limited.
Chairman Anil Agarwal has expressed his confidence in Vedanta’s ability to meet the growing demand for minerals, metals, oil and gas, and power. He anticipates rapid growth in these sectors and believes that Vedanta’s diverse portfolio positions the company favorably to cater to this increasing demand while reducing dependence on imports.
This strategic reorganization reflects Vedanta’s commitment to unlocking the full potential of its various business segments and fostering a more focused and agile approach to meet the evolving needs of the market.
As Vedanta continues to streamline its operations and pursue its debt reduction objectives, the company’s strategic vision is clear: to remain a formidable player in India’s industrial landscape and contribute significantly to the nation’s self-sufficiency in critical sectors. Vedanta’s determination to complete the sale of its steel assets by March 2024 underscores its dedication to achieving these goals and solidifying its position as a leader in the Indian business community.
