Vedanta Unveils ₹81,743 Crore Expansion Plan Targeting 18% EBITDA Growth
Vedanta Limited announces a massive expansion plan with ₹81,743 crore in capital expenditure, aiming to significantly boost production capacities across its five business segments. The company plans to increase aluminium smelting capacity to 3.1 MTPA, zinc-lead capacity to 1.38 MTPA, steel capacity to 3.5 MTPA, oil production to 125-150 kboepd, and merchant power capacity to 4.78 GW. Vedanta projects its consolidated EBITDA to grow from $5.19 billion in FY25 to $8.45 billion in the medium term, representing an 18% CAGR. The strategy focuses on vertical integration, cost reduction, and increasing value-added product offerings.

*this image is generated using AI for illustrative purposes only.
Vedanta Limited , one of India's leading diversified natural resources companies, has announced an ambitious expansion plan across its five business segments, aiming to significantly boost its production capacities and financial performance.
Massive Capital Expenditure
The company plans to invest ₹81,743 crore in capital expenditure projects, with ₹50,747 crore remaining unspent as of the latest update. This substantial investment is expected to drive growth across Vedanta's diverse portfolio of businesses.
Expansion Targets
Vedanta has outlined specific expansion goals for each of its major business segments:
Aluminium
- Increase smelting capacity from 2.4 MTPA to 3.1 MTPA by FY28
- Expand alumina refining capacity from 2 MTPA to 6 MTPA by FY28
Zinc-Lead
- Boost capacity from 1.1 MTPA to 1.38 MTPA by FY29
Steel
- Grow capacity from 1.7 MTPA to 3.5 MTPA by FY28
Oil Production
- Increase from current levels of 103 kboepd to 125-150 kboepd
Power
- Double merchant power capacity from 2.9 GW to 4.78 GW
Financial Projections
Vedanta projects significant growth in its financial performance:
- Consolidated EBITDA is expected to grow from $5.19 billion in FY25 to $8.45 billion in the medium term
- This represents a compound annual growth rate (CAGR) of 18%
Strategic Focus
The company's expansion strategy centers on:
- Vertical integration
- Cost reduction through backward integration into mining operations
- Increasing value-added product offerings across segments
Market Position
Vedanta holds strong market positions in key sectors:
- 3rd largest aluminium producer globally outside China
- World's largest integrated zinc producer
- Largest private sector crude oil producer in India
Segment-wise EBITDA Projections
Business Segment | FY25 EBITDA ($ bn) | Medium Term EBITDA ($ bn) |
---|---|---|
Zinc, Lead & Silver | 2.26 | 2.70 |
Aluminium | 2.10 | 4.00 |
Oil & Gas | 0.56 | 0.70 |
Iron, Steel & Ferrochrome | 0.19 | 0.65 |
Power | 0.08 | 0.40 |
Conclusion
Vedanta's comprehensive expansion plan demonstrates the company's commitment to growth and its confidence in the future demand for its products. By investing in capacity expansion and focusing on vertical integration, Vedanta aims to strengthen its position as a leading player in the global natural resources sector while driving significant financial growth.
As per the LODR data, Vedanta Limited has officially informed the stock exchanges about this presentation on their capital expenditure plans and potential impact on business performance. The company has made this information available on its website, ensuring transparency with its investors and stakeholders.
Historical Stock Returns for Vedanta
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.91% | -5.31% | -4.29% | +6.56% | -9.23% | +226.97% |