Vedanta Limited, one of the biggest corporations in the world for natural resources, holds significant stakes in India’s steel, nickel, copper, zinc, silver, copper rod and cathodes, aluminium, iron ore, and commercial power industries.The copper segment specialised in custom smelting in addition to having a copper smelter, a refinery, a phosphoric acid plant, a sulphuric acid plant, a copper rod factory, and three captive power plants. 

The Lanjigarh refinery and captive power plant and the Jharsuguda smelter and captive thermal coal power facility are both part of the aluminium section, both of which are located in the Indian State of Odisha. The metallurgical coke, pig iron, and iron ore are all investigated, mined, and processed in the Iron Ore section. The 600 MW thermal coal-based power plant makes up the Power sector.

 

Last five years of Vedanta

Vedanta merged its newest arm, Vedanta Star, in 2018.

 The 10-year extension for the Rajasthan oil block goes to Vedanta.

 Vedanta is the successful bidder for Electrosteel Steels.

 Ninety percent of Electrosteel Steels is owned by Vedanta.

 The first phase of the Gamsberg mine in South Africa is set to open in 2019 thanks to Vedanta Zinc International.

 In the Bay of Bengal’s KG block, Vedanta finds oil.

 Vedanta opens the Nand Ghar in Jaipur, serving more than 17,000 children and 15,000 women.

 In FY19, Vedanta invested Rs 10,000 crore.

 3,000 Rajasthani kids receive laptops from the Vedanta Foundation.

At the Mines Safety Association Karnataka Zone – 3 in 2020, Vedanta Sesa Goa Iron Ore Karnataka Unit got 46 prizes.

 At the 21st CII National Award for Excellence in Energy Management, Vedanta Aluminium came out on top.

Vedanta will provide 100 beds for infra-ventilators to Goa in 2021.

 Promoters of Vedanta purchase a 3.7% stake for Rs 349.70 a share.

 Golden Peacock GLOBAL Award For Excellence In Corporate Governance – 2022 Vedanta Limited Year 2022

 In the S&P Global Corporate Sustainability Assessment 2022, Vedanta is ranked among the top 10.

 IIT Madras startup and Vedanta work together to develop AI-based safety innovations.

 Vedanta collaborates with TERI to further ESG objectives.

 

Vedanta Share Price Recent Developments

Billionaire Anil Agarwal’s Vedanta Group has achieved a remarkable financial feat with the release of pledged shares worth a staggering ₹70,444 crore, marking one of the largest-ever pledged share releases in the listed space This achievement comes after loans totaling $800 million to Standard Chartered Bank were repaid.

Vedanta Share Price parent company, Vedanta Resources (VRL), has successfully settled outstanding obligations tied to three facilities acquired from Standard Chartered Bank in London and Hong Kong. These facilities, originally totaling $400 million, $250 million, and $150 million, were raised by various group entities, including Twin Star Holdings, Vedanta Netherlands Investments, and Vedanta Resources. VRL and its subsidiaries had acted as guarantors for these loans, pledging shares of its subsidiaries as collateral. However, the company has now released these pledged shares by fully repaying the loans.

The facility agreement for these transactions was executed with Madison Pacific Trust Limited serving as the facility agent on behalf of the finance parties.

Anil Agarwal, in a recent statement, affirmed that his Vedanta Group possesses robust cash flows to fulfill all debt repayment obligations. He expressed the group’s ambition to transform into a “net-zero debt company” within the next 2-3 years. Agarwal emphasized that concerns regarding Vedanta’s ability to service its debt are “absolutely irrelevant,” as the group anticipates generating $9 billion in profits next year from revenue totaling $30 billion, a sum more than adequate to meet all financial commitments.

In a significant move earlier in April, Vedanta Resources Ltd., the parent company of Vedanta Ltd., successfully settled all maturing loans and bonds, further reducing its gross debt by an additional $1 billion.

Vedanta has now decreased its debt by a total of $3 billion since declaring its resolve to accelerate deleveraging and lower its debt by $4 billion within a three-year period in February 2022, according to a statement the firm made emphasising its significant accomplishment. With this achievement, the company has accomplished 75% of its committed debt reduction goal in just 14 months.

For the quarter ending in June 2023, Vedanta Resources has declared that it is confident it will be able to meet its liquidity needs, stressing both its strengthened financial position and commitment to debt reduction.

Vedanta’s semiconductor collaboration with Foxconn

Vedanta and Foxconn have decided to end their joint venture to produce semiconductors in India, claiming a “mutual accord” to look into other development opportunities. This choice marks the end of their collaboration, which was started in February 2022 with the intention of producing semiconductors and display panels in line with the strategic objectives of India’s Semiconductor Mission, as required by the Indian government.

In response to this dissolution, Vedanta has already identified fresh collaborators for the establishment of India’s inaugural chip foundry.

As early as June 26, the joint venture was having problems, which prompted Foxconn to investigate potential alliances with other Indian companies to accelerate its chip production ambitions in the nation.

According to sources privy to the matter, discord had arisen between the two corporate entities, and even the government had proposed that Foxconn seek an alternative partner.

Foxconn, while remaining sanguine about India’s advancements in semiconductor innovation, intends to forge a spectrum of alliances within the country to meet its technological requisites.

The cessation of this partnership was in part attributed to the markedly divergent approaches taken by the two entities, stemming from cultural disparities. Foxconn, expressing concerns regarding Vedanta’s financial stability, had also conveyed its misgivings to senior government officials.

To avert potential misinterpretation amongst prospective stakeholders, Foxconn advised against the retention of its original nomenclature in its official announcement and unambiguously distanced itself from the collaborative venture.

Through the joint venture, Vedanta has presented a new proposal for a 40 nm fabrication facility that is supported by a technological licensing agreement with a major semiconductor company. The technological advisory council of the government is now reviewing this idea.

Notwithstanding this parting of ways, the India Semiconductor Mission endures, with industry participants already cognizant of the schism between Vedanta and Foxconn, and preparations are already underway to explore novel alliances.

OCCRP accuses Vedanta of covert lobbying in “Uncovering the Allegations:

Engaging in an exceptional instance, Vedanta ardently championed an augmentation of mining entities’ production capacities by a substantial 50 percent, all without the requisite acquisition of fresh environmental clearances, as meticulously detailed within the comprehensive report.

A recently unveiled exposé by the Organized Crime and Corruption Reporting Project (OCCRP), an internationally dispersed consortium of investigative wordsmiths, asserts that the mining and petroleum conglomerate Vedanta surreptitiously endeavored to undermine crucial environmental statutes during the global pandemic through extensive lobbying. Previously, the OCCRP had leveled allegations against the Adani group for clandestinely investing in its own corporate holdings. This non-governmental entity, bolstered by the financial generosity of George Soros, confirmed in its latest communication that specific alterations were authorized by the Indian government sans the benefit of public discourse and were executed through illicit channels.

Advocating Controversial Petroleum Endeavors

“In a particular instance, Vedanta steadfastly advocated for mining enterprises to augment their production capabilities by up to 50 percent without necessitating the acquisition of fresh environmental clearances,” as per the report. This dossier further avowed that Cairn India, a subsidiary under the Vedanta umbrella, actively lobbied for the annulment of public consultations regarding the ‘drilling’ endeavors in petroleum blocks secured through governmental auctions. Despite local dissent, six contentious petroleum initiatives of Cairn have received approval in Rajasthan.

In response to questions, a Vedanta representative claimed that the organisation’s goal is to decrease imports by supporting sustainably run domestic production.Without disputing the allegations put forth by OCCRP, the spokesperson asserted, “In light of this, we consistently present representations to the government for consideration, with the aim of furthering national development and India’s pursuit of self-sufficiency in natural resources.”

Proposals for Augmented Production without Environmental Sanctions

OCCRP revealed that Anil Agarwal, the founder and chairman of the Vedanta Group, apprised the then-environment minister Prakash Javadekar in January 2021 that the government could expedite India’s economic expansion by permitting mining establishments to elevate their production quotas by as much as 50 percent, all without the necessity of fresh environmental clearances.

In a missive to Javadekar, Agarwal articulated, “By promptly bolstering production and economic growth, substantial revenues could accrue to the government, alongside the creation of an extensive workforce.” He proposed that this transformation be implemented through “a straightforward notification.” The report delineated that Javadekar acted expeditiously in this direction and “instructed the secretary of his ministry and the Director General of Forestry to deliberate on the policy matter.” This correspondence was underscored as being of paramount significance.

Examination of Myriad Governmental Documents

OCCRP remarked that previous endeavours by the industry to effectuate analogous modifications had floundered. However, this time, Agarwal achieved his desired outcome. The organisation asserted that in addition to Agarwal’s letters, it carefully examined a wide range of government documents, including internal memos and discussion points from private meetings. These epistles were procured under the purview of the Right to Information Act. The assertion was made, “The records substantiate that government functionaries tailored the regulations in accordance with industry demands, with Vedanta assuming a particularly influential role.”

Conclusion

Vedanta Limited holds a stake, in Indias natural resource industry covering sectors like iron, nickel, copper, zinc, silver, aluminum, iron ore and commercial electricity. Vedanta is now a player on the stage as a result of this.Over the five years Vedanta has achieved progress through strategic mergers, smart financial decisions and meaningful social initiatives.

A crucial milestone in Vedanta’s journey was the release of encumbered shares worth a substantial 70,444 crore.  Thanks to its high cash flows, Vedanta is now well-positioned for expansion and ongoing success.

Moreover Vedanta actively participates in programs like the India Semiconductor Mission and collaborates with organisations such as TERI to showcase its commitment towards sustainability as well as social and governance objectives (ESG).

Despite challenges encountered along the way Vedanta consistently plays a role in driving both economic progress and welfare, for the Indian population amidst an ever changing global resource landscape. Its efforts in this sector will be guided by its resilience and agility.