Vedanta demerger into five listed firms likely by March 2026: Anil Agarwal

Vedanta plans to complete its demerger into five listed pure-play companies by March 2026, with its ₹48,000 crore debt allocated based on cash flows, said chairman Anil Agarwal

A day after receiving the nod from the National Company Law Tribunal (NCLT), Vedanta Group Chairman Anil Agarwal on Wednesday said that the proposed demerger into five independently listed companies is targeted for completion by March 2026.

 

Post-demerger, Vedanta will house the base metals business, while Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy will operate as separate listed companies.

 

Speaking to PTI, Agarwal said that the move is central to unlocking the full growth potential of each business.

 

"Each of Vedanta’s businesses — zinc, silver, aluminium, oil and gas, power, iron ore and steel — has tremendous potential. Demand is almost doubling, particularly in India. Demerger is the right thing to do to let each business grow on its own," he said, as quoted by PTI.

 

How will the debt be allocated among each firm?

Rather than being split equally, Agarwal said Vedanta’s net debt of around ₹48,000 crore will be allocated among the demerged companies based on their respective cash flows and balance-sheet strength.

 

Addressing concerns around leverage, Agarwal reiterated that the group’s debt remains manageable.

 

“This is among the lowest leverage levels globally. Debt is part of business, and we are very comfortable with our position,” he said, adding that Vedanta would continue to optimise its balance sheet.

 

How will the companies be structured?

Agarwal said that promoters will hold around a 50 per cent stake through a holding structure. However, each entity will have an independent board and professional management teams for handling day-to-day operations.

 

“There will be proper boards, CEOs and fully incentivised management teams. Management participation through shareholding schemes will continue,” he said, adding that he may not chair all the demerged companies.

On pure-play focus

Turning to individual businesses, Agarwal said Vedanta aims to scale up zinc production to rank among the world’s largest producers. Recently, the company also announced its plans to increase silver output to 3,000 tonnes from about 700 tonnes currently to meet domestic demand. Silver is recovered as a by-product from the smelting and refining of zinc.

 

In aluminium, Agarwal said that the group plans to double capacity from 3 million tonnes, supported by captive mines and renewable energy-linked greenfield projects.

 

For the oil and gas business, Agarwal said that Vedanta is targeting production of 300,000 barrels per day (bpd) in the near term, with a longer-term goal of scaling up to 1 million bpd over the next four to five years.

 

The iron ore and steel business will focus on green steel, leveraging access to gas and renewable power, with proposed capacity of 10–15 million tonnes, he added. This comes in line with the company's recent ₹1 trillion investment in Rajasthan to double its production across zinc, lead, silver, oil & gas, and renewable energy.

 

Agarwal also said that aggressive capex will continue post-demerger, alongside regular dividend payouts.