Sunday, Apr 21, 2024 | Last Update : 07:14 AM IST

  Business   Companies  19 Feb 2017  Vedanta to invest $10 bn on expanding business

Vedanta to invest $10 bn on expanding business

Published : Feb 19, 2017, 4:55 pm IST
Updated : Feb 19, 2017, 4:56 pm IST

Vedanta Resources subsidiary Cairn produces over 2,00,000 barrels oil and oil equivalents per day.

Vedanta Resources Group Chairman Anil Agarwal.
 Vedanta Resources Group Chairman Anil Agarwal.

New Delhi: Metals and mining conglomerate Vedanta will invest USD 10 billion in 3-4 years on expanding business across verticals, company's Chairman Anil Agarwal said.

He also said the merger of Cairn India and Hindustan Zinc with Vedanta is likely to be completed in the current quarter, creating India's largest diversified natural resources firm that will compete with the likes of BHP Billiton and Vale SA.

"We have the potential to spend USD 10 billion over a period of five years; we are looking at 3,50,000 barrel of oil... to have 100,000 barrel equivalent to gas. We are looking to integrate 3 million tonnes capacity for the aluminium," the mining baron told PTI in a telephonic interview.

"We are looking to have over a million tonnes of zinc and lead, 1,000 tonnes of silver. We are looking to put up a fertiliser plant for DAP for a million tonnes in Rajasthan," he added.

Vedanta Resources subsidiary Cairn produces over 2,00,000 barrels oil and oil equivalents per day and plans to enhance its production by another 1,00,000 barrels of oil equivalent per day. Its operations span across India, Sri Lanka, Zambia, Namibia, South Africa, Liberia, Ireland and Australia.

About the proposed merger of cash-rich Cairn India and Hindustan Zinc into the flagship Vedanta Group to create a global natural resources giant, Agarwal said that in all likelihood the process will be completed this quarter.

"The process is going on. It should be over this quarter. It takes time...some clearance here some clearance there... but it is almost through. Shareholders have given approval, SEBI has given approval... It should be over in this quarter only," Agarwal said.

The merger will mark a significant step towards achieving group's long-term vision of a simplified group structure and creation of long-term sustainable value, Agarwal said. The average gross production of Cairn India Ltd, one of the largest independent oil and gas companies, produced 203,703 barrels of oil equivalent per day (boepd) in 2015-16.

In June 2015, Vedanta Ltd (formerly known as Sesa Sterlite Ltd/Sesa Goa Ltd) had announced its proposed merger with Cairn India. Last year, Cairn India shareholders approved merger of the company after LIC and Cairn Energy PLC of UK voted in favour of the sweetened merger ratio.

LIC holds 9.06 per cent stake in Cairn India while Cairn Energy has 9.82 per cent. Shareholders of Vedanta Ltd and LSE-listed Vedanta Resources had approved the merger under a revised all-share deal.

Under the revised offer, Vedanta will give minority shareholders of Cairn India one equity share and four redeemable-preference shares with a face value of Rs 10 each. The preference shares will carry a coupon of 7.5 per cent and tenure of 18 months.  

Tags: vedanta, investment, anil agarwal, merger, cairn india, hindustan zinc
Location: India, Delhi, New Delhi