Anil Agarwal's Vedanta announces demerger; to split into 6 listed companies

Vedanta Resources today announced that its board has approved the demerger of diversified businesses, resulting in the creation of six separate listed companies.

But why Vedanta chose to demerge its businesses?

The demerger is aimed at simplifying its corporate structure, allowing each sector-focused business to operate independently, and providing global investors with direct investment opportunities.

A look at these six new entities

Vedanta Alumnium

This company is the largest single-location aluminium smelting facility outside of China, focusing on growing the production of green aluminium under the Restora brands.

Vedanta Oil & Gas

It is the largest private oil, gas, and sweet crude exploration and production company in India, aiming to contribute 50% to India’s total Oil and Gas production.

Vedanta Power

This entity will house the Independent Power Plants at Vedanta, aiming to be one of the largest private independent power players in India.

Vedanta Steel and Ferrous Materials

This vertical includes Iron Ore Business and ESL Steel Limited, aspiring to more than double annual iron ore production by 2025.

Vedanta Base Metals

This unit will contain international base metal production assets, growth projects, and downstream businesses critical to global energy transition.

Vedanta Limited

The company will remain as an incubator for new businesses including Vedanta’s technology verticals, providing investors with the opportunity to invest in leading zinc production assets and nascent technology companies.