Vedanta Ltd has announced a significant investment of $6 billion across its diverse business verticals, including aluminium, zinc, iron ore, steel, and oil and gas, with the goal of increasing annual EBITDA by at least $2.5 billion, as revealed by its executives during an investor meeting. This strategic move is part of a larger plan to drive growth through more than 50 active projects and expansions, expected to generate over $6 billion in incremental revenue and elevate EBITDA levels to $7.5 billion by FY27, building upon the current fiscal year's projected EBITDA of $5 billion ending on March 31.
Vedanta Chairman Anil Agarwal outlined the company's ambitious vision for the next 25 years, expressing confidence that the organization will reach a "different level" in its trajectory. With a focus on creating additional value across its operations, Vedanta is actively pursuing high-impact projects aimed at solidifying its cost leadership and enhancing operational capacities. These efforts are expected to drive EBITDA towards the targeted $7.5 billion annually, supported by ongoing growth initiatives and a substantial capital expenditure plan amounting to $6 billion.
The company's strategic initiatives also include deleveraging as a top priority, with plans to reduce net debt to $9 billion by FY27 from the current level of $13 billion, as outlined by the Chief Financial Officer Ajay Goel. Vedanta Resources, the parent company, has already reduced its net debt to $6 billion through a deleveraging process, showcasing a commitment to financial stability and optimization. With a focus on maximizing cash flow and securing debt maturities, Vedanta Limited aims to navigate its financial landscape efficiently, positioning itself for sustainable growth and value creation.