Vedanta Limited
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Vedanta Limited is an Indian multinational
History
Sterlite Industries
Vedanta (then called Sterlite industries) began in the 1980s, as the founder D.P.Agarwal founded Sterlite Industries (India) Limited in
In the 1990s, as the Indian government began to sell off sick (non-performing) companies, Sterlite began to bid for them. They were able to bid successfully for
On 8 December 1999, officials of the Income Tax department raided the offices of Sterlite located at Dhanraj Mahal,
Sesa Goa – Scambi (1954–1963)
The company today known as Sesa Goa was founded in 1954, as Scambi Economici SA Goa.
Sesa Goa (1963–2007)
Sesa Goa Limited was incorporated as a private limited company in 1963 under
In the 1990s, Sesa Goa began further expansion, aided by an influx of foreign investment during the
In 1997, A Narrain mines located in
During the end of the 90s, the company also began to consolidate through mergers and acquisitions. Sesa Kembla completed the creation of an indigenous and environment-friendly technology that produced high-quality metallurgical coke. This technology generated power[12] as a by-product.[13] In 2003, the Sesa Goa equity in Sesa Industries was raised to 88.25%, impacting the shareholding pattern.
Take over by Vedanta (2007)
In 2007,
In 2007, it became a majority-owned subsidiary[20] of Vedanta Resources Plc, listed on the London Stock Exchange, when Vedanta acquired 51% controlling stake from Mitsui & Co., Ltd. In June 2009, Sesa Goa Limited acquired[16] VS Dempo & Co. Private Limited (now Sesa Resources Limited) along with its fully owned subsidiary Dempo Mining Corporation (now Vedanta Limited) and 50% equity in Goa Maritime Private Limited. In 2010, Vedanta acquired the zinc assets of British miner Anglo American plc.
In 2011
In 2018 Vedanta Limited acquired control of Electrosteels Steels Limited.[25] Electrosteel Steels had been constructing an integrated steel plant at Siyaljori in Jharkhand.
In May 2020, it is declared that company is going to delist from Indian bourses as per the comment by Mr. Anil Agarwal.[26]
In September 2022, Vedanta signed a pact with Foxconn as a technical partner to invest ₹1.54 trillion (US$19 billion) to set up semiconductor and display production plants in Gujarat. The venture intends to start manufacturing display and chip products within two years. The investment follows the Indian government commitment to expand incentives beyond an initial $10 billion plan for those investing in manufacturing of semiconductors.[27][28] Barely a year later in July 2023 the venture was ended with mutual agreement with both companies maintaining that they are still looking to set up semiconductor foundries in India.[29][30]
On March 24, 2024, Vedanta Ltd announced a $6 billion investment across various business verticals, including aluminium, zinc, iron ore, steel, and oil and gas, aiming to add at least $2.5 billion to its annual EBITDA. The investment is part of a strategy involving over 50 active projects expected to generate additional revenues of over $6 billion, with plans for a significant vertical split leading to the creation of five newly listed companies.[31]
Operations
Though the company primarily operated in Goa and Karnataka, it has gradually expanded its operations in recent years to Odisha, Rajasthan, Chhattisgarh, Tamil Nadu, Punjab, Jharkhand, Gujarat and Andhra Pradesh.[32]
Vedanta limited owns, leases and operates in India through the following entities:
- Bharat Aluminium Company: In February 2001, Government of India in a major dis-investment deal, approved the sale of its 51% stake in BALCO to Sterlite Industries (now Vedanta Limited) for Rs.551.5 crores.[33] The government of India owns the remaining 49.0%. Incorporated in 1965, BALCO was a profit making Public Sector Company which had played a crucial role in increasing the usage of aluminium over a wide spectrum of products ranging from household utensils to aerospace and defense sectors. BALCO is headquartered at Korba in the state of Chhattisgarh and is a vertically integrated aluminium producer having its own captive bauxite mines, captive power plants and smelter.[34]
- Hindustan Zinc: HZL is headquartered in Udaipur in the state of Rajasthan. HZL's equity shares are listed and traded on the NSE and BSE. Vedanta owns 64.9% of the share capital in HZL and has management control. Sterlite has a call option to acquire the government of India's remaining ownership interest.[35]
- Tuticorin, Tamil Nadu, India. Sterlite has been a public listed company in India since 1988, and its equity shares are listed and traded on the NSE and the BSE, and are also listed and traded on the NYSE in the form of ADSs. Vedanta owns 53.9% of Sterlite and has management control of the company. Protest by Public of Tuticorin started for not following Environmental Clearance Issues. The Tamil Nadu Pollution Control Board (TNPCB) accused the factory of releasing noxious gas in the air. It said sulphur-di-oxide levels had gone off the charts on the night of 23 March in the year 2013. It showed a reading of 2939.55 mg/cubic metre against the prescribed limit of 1250 mg/ cubic metre more people were affected by cancer and other breathing disorders but the Indian government did not take any action.[37]
- Twin star (a Mauritius-based offshore holding company that owns sizable parts of Vedanta limited)[38]
- Cairn India and Cairn energy India (oil and offshore exploration)[36]
- Mines in Goa (currently frozen statewide) and Karnataka (owned by Vedanta limited)[39]
- Electrosteel Steels limited, Jharkhand (through Vedanta star, a holding company)[38][40]
- Vedanta Aluminium: Vedanta Aluminium is headquartered in Jharsuguda, Odisha. Vedanta owns 70.5% of the share capital of Vedanta Aluminium and Sterlite owns the remaining 29.5% share capital of Vedanta Aluminium. Vedanta Aluminium produces ingots, billets & wire rods that are sold in the markets around the world. Vedanta Aluminium Limited (VAL) has acquired a 24.5% stake in L & T subsidiary Raykal Aluminium. Based on achieving certain milestones, Vedanta Aluminium will fully acquire Raykal Aluminium in phases.[42] Vedanta is undertaking an expansion program. It plans to produce around 1.5 million tonnes of aluminium in the fiscal year 2016-17 from its Jharsuguda and Korba smelters which will make it the largest aluminium producer in India. Its alumina refinery, located in Lanjigarh, plans[43] to produce 1.5 million tonnes of alumina and depending on availability of domestic bauxite will subsequently ramp it up to 4 million tonnes per annum in the near future.[44] Despite NGO sponsored activism, the Lanjigarh smelter has seen a lot of support from the local people who see it as an important source of employment and livelihood.[45]
- Madras Aluminium Company: MALCO is headquartered in Mettur, India. MALCO's equity shares are listed and traded on the NSE and BSE. It owns 93.9% of MALCO's share capital and has management control of the company.[46]
As of 30 June 2018, the company is owned 50% by the promoters (under Finsider international and Twinstar holding, both holding companies owned under the names of 12 members of the Agarwal family) and 50% by the public. The promoters ownership (51%) is held under "Westglobe limited" under "Twinstar holdings" (37%) and Finsider international (11%).
Relationship with
Vedanta Management has shared its intentions to delist company from stock exchanges subject to Shareholders approval. However, delisting is a lengthy process and may take years.[50]
Relationship with Cairns India and Carins energy: In 2016, Cairns India and Cairns Energy were purchased by Vedanta Limited. Cairns was a US-owned company and the 2nd largest private oil and gas company in India.
Products
Copper: Vedanta limited operates the largest
Zinc-Lead-Silver: Zinc India business is owned and operated by
Aluminium: Vedanta's aluminium output rises 2% to 584,000 tonnes in second Qtr of FY23[53]
CSR & Sustainability
Vedanta invested US$37 million towards community development in 2015–16, benefitting over 2.25 million people globally.[54] The Confederation of Indian Industry (CII) ranked Vedanta Limited and its subsidiary Hindustan Zinc among the top ten sustainable firms in India.[55] In FY2016, Vedanta recycled 47% of the fly ash generated through operations, as well as recycled 23% of the water utilized during its operations.[56]
The company developed a Public-Private-Partnership (PPP), with the Ministry of Women and Child Development, Government of India to modernize and construct the Anganwadi infrastructure in India.[57][58]
Controversies
2001 SEBI case
In 2001, Sterlite industries,
Tuticorin Sterlite protests
In early 2018, thousands of residents of
In May 2018, amidst ongoing protests by thousands of people, matters turned rough one day and the police opened fire on demonstrators.[64][65] The firing killed 13 people and protesters turned violent, burning vehicles and structures. Residents say the copper smelter is causing environmental damage. Subsequent to the firing, the Tamil Nadu chief minister Palaniswami ordered a judicial inquiry into the shootings but defended the police response.[66]
Awards
Vedanta Aluminium received the recognition of "Indian Affairs India's Most Valuable Aluminum Producing Company of the Year 2018" & Its CEO Abhijit Pati in the category of "Indian Affairs Innovative CEO of the year 2018" at the Satya Brahma 9th Annual India Leadership Conclave 2018 in Mumbai.[67]
Offices
The registered office and corporate office of Vedanta Limited are based in Mumbai.[68] The company has offices in New Delhi, NCR as well as across its operations in the country.
See also
References
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- ^ "Annual report 2022" (PDF).
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External links