Vedanta Resources Ltd plans to create a $10 billion fund to bid for assets, including the Indian government's stake in Bharat Petroleum Corp Ltd BPCL, its chairman told Reuters on Thursday.
The Indian government wants to privatise state-owned refiner BPCL by selling its near 53% stake in the firm, worth just over $6 billion, to private entities.
Anil Agarwal said in an interview in Dubai that they are in the process of creating a fund of $10 billion. It will look at BPCL but there are other companies that are being privatised. It will look at the potential of those companies as well. Agarwal said the fund will be made up of its own resources and outside investment, and it may also finance the BPCL acquisition through debt.
He said that we will work out a structure and that we are doing the due diligence. We will work out how we take the money and go about it as soon as the date comes. There is no large fund that doesn't want to associate with us in general. He said money will never be a problem.
Vedanta Resources, founded in 2003 by Agarwal, has grown its annual revenues from $1 million to over $15 billion in the past decade.
As well as its operations in India, the group has mining interests in South Africa and a precious metal refinery and copper rod plant in the United Arab Emirates' Fujairah Free Zone.
It is exploring opportunities for new zinc, gold and magnesium mines in Saudi Arabia. Agarwal said $2 billion worth of investment will be needed to tap opportunities in the kingdom.
He said that Saudi Arabia is coming out in March with full details. They invite very serious people to come and participate in joint ventures. Agarwal said the company is aiming to be zero-carbon by 2050 and will invest $5 billion in the medium term to reduce its carbon footprint.