Mumbai: Vedanta Ltd, a company that has significant presence in Odisha, plans to infuse Rs 13,226 crore in its operations to ramp up its aluminium capacity to 3.1 million tonnes per annum (MTPA) by 2027-28, it has been reported.
Vedanta’s current capacity is 2.4 MTPA.
According to reports, the company is anchoring aluminium at the centre of its growth strategy. The most consumed metal in the world after steel, aluminium is becoming increasingly critical to electric mobility, renewable energy, urban infrastructure, and aerospace.
The leading aluminium producer in India is Vedanta, with a market share of over 50 per cent. The company is set to ensure aluminium remains the single biggest contributor to its target of 8-10 billion dollar EBITDA at group level by FY28, as per its recent exchange filing.
Vedanta’s aluminium capacity will expand to 2.75 MTPA by FY26, and further to 3.1 MTPA by FY28, it has been revealed. The capacity of BALCO, in which Vedanta holds a majority stake, is also set to go up to one million tonnes, it was learnt.
Vedanta has been focussing on cost optimisation, by bringing down its aluminium production cost by nearly 24 per cent, or USD 641 per tonne, over the past 11 quarters, aided by backward integration across alumina with Lanjigarh Refinery expansion and coal mines, they said.
Its aluminium business is supported by fully captive operations. This captive integration is not the global norm and provides Vedanta resilience in a volatile geopolitical environment, while underpinning low-cost manufacturing.
India’s projected high GDP growth is expected to push up the demand for aluminium in the years to come. Government initiatives like ‘Make in India’, ‘100 per cent rural electrification’, ‘Housing for All’, and ‘Smart Cities’ are likely to boost the consumption of the metal in the country.
