Vedanta will become an asset owner by separating various businesses: Anil Agarwal

New Delhi. Vedanta Chairman Anil Agarwal has said that the proposal to separate various businesses will transform the company from an asset manager to an asset owner. Vedanta, which is involved in various businesses, represents more than 15 commodities. The separation of units will create independent companies dealing in aluminium, oil and gas, power, steel and ferrous materials and base metals. The existing zinc and new ‘incubated’ businesses will remain under Vedanta Ltd.

“Our expansion moves are in line with our plan to transform our business model. The separation of our diverse businesses representing over 15 commodities will enable us to progress from an asset manager to an asset owner,” Agarwal said in a latest report. “As the company undergoes a transformation, Vedanta is focused on strengthening its asset base to become a global leader in each of its sectors,” he added.

Natural resources company Vedanta Ltd has proposed a plan to separate its businesses in the National Company Law Tribunal (NCLT) after getting approval from lenders. It expects to complete the process to implement the plan by the end of the current financial year. Vedanta Resources subsidiary Vedanta Ltd has received approval from 75 per cent of its secured creditors for its proposal to separate its businesses.

Separating the business will help simplify the corporate structure of the company. Along with this, global investors are also expected to come forward for direct investment. The company is investing $1.9 billion as capital expenditure to accelerate its business from FY 2023-24. Vedanta’s consolidated net profit grew 36.5 percent to Rs 3,606 crore in the quarter ended June 30, 2024. The company’s profit increased due to better margins and cost reduction. The company had earned a net profit of Rs 2,640 crore in the same period a year ago.