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Vedanta Ltd.

BSE: 500295 Sector: Metals & Mining
NSE: VEDL ISIN Code: INE205A01025
BSE 00:00 | 27 May 307.85 -5.15
(-1.65%)
OPEN

316.70

HIGH

319.20

LOW

303.45

NSE 00:00 | 27 May 307.85 -5.20
(-1.66%)
OPEN

316.00

HIGH

319.05

LOW

303.45

OPEN 316.70
PREVIOUS CLOSE 313.00
VOLUME 1056370
52-Week high 440.75
52-Week low 242.60
P/E 6.54
Mkt Cap.(Rs cr) 114,434
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 316.70
CLOSE 313.00
VOLUME 1056370
52-Week high 440.75
52-Week low 242.60
P/E 6.54
Mkt Cap.(Rs cr) 114,434
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Vedanta Ltd. (VEDL) - Chairman Speech

Company chairman speech

Strength meets responsibility

DEAR STAKEHOLDERS

The year 2020 was a very unusual year for all of us. A year that was challenging onmultiple fronts but what stood out was the extraordinary resilience and adaptability ofindividuals and enterprises. There was a tectonic shift in the way we live or conduct ourbusinesses and Vedanta was no different. As a large natural resources company we havehad our fair share of challenges. However we were quick to adapt to the emergingrealties backed by the relentless support of our dynamic workforce.

We extended our support to the nation's fight against COVID-19 during its first wavethrough contributions to the PM CARES Fund and undertaking initiatives that positivelyimpacted the lives of over 15 lakh people. We have now pledged Rs 150 crore to help thecountry in its fight against the second wave of COVID-19 along with setting up 1000specialty beds in 10 locations across India. Sterlite Copper which has a capacity toproduce 1000 tonnes of oxygen at Tuticorin is catering to the needs of COVID-19 patientsin the region.

A YEAR OF CONTINUED EXCELLENCE AND LEARNING

Vedanta Limited is one of the world's largest suppliers of natural resources withprimary operations in zinc-lead-silver iron ore steel copper aluminium power oil& gas. Our portfolio of world-class low- cost scalable assets consistently generatestrong profitability and deliver robust cash flows. We are actively deleveraging ourbalance sheet and are raising the bar in operational excellence across our wide canvas ofoperations.

During FY2021 Vedanta continued to live up to its promises to its stakeholders andoperated a resilient and responsible business that contributed to a self-reliant India.Even as temporary disruptions materialised we were able to bounce back strongly withindustry-leading EBITDA margins and exceptional quarters for key businesses.

We continued to deliver on all strategic levers building on our strengths andcommitment to operational excellence. We remained cash flow positive; and maintainedliquidity at comfortable levels.

It also gives me great pleasure to inform you that we performed exceedingly well on keyenvironmental social and governance (ESG) aspects during the year. This is validated byour ranking in the Dow Jones Sustainability Index which improved nine places to 12thglobally in our industry. It's a true reflection of our belief that business andsustainability are synergistic in nature.

While we have reasons to celebrate we mourn the passing of eight of our colleagues. Weare grieved by their irreplaceable loss and are supporting the bereaved families. AtVedanta we accord paramount importance to occupational safety and employee well-being andcontinue to nurture a safety culture that results in zero harm. However there is alwaysroom for improvement and collective action and behavioural change alone can help bringtransformational outcomes. Aligned to this we are conducting a Groupwide review of permitto work and isolation procedure and are instating a safety alert dashboard to improveimplementation of fatality learnings. Cross business safety audits and piloting ofcritical risk management are other supplementary initiatives supporting this.

OPERATING IN A THRIVING ECONOMY

After an outlier year India is now back on the growth trajectory and is poised togrow by 11.5% in

FY2022 according to the International Monetary Fund.

The rebound is clearly evidenced by the uptick in consumption manufacturing activityand bank credit. India is experiencing a V-shaped recovery. Global agencies such as theWorld Bank have acknowledged the fact that this recovery is phenomenal given how thecountry has now opened up and is organising large-scale vaccination drives on priority.

The government is also playing a key role in facilitating the economy's return to thegrowth path. This is clearly reflected in the Union Budget 2021-22 which lays extendedfocus on economic enablers such as infrastructure and socially important sectors such ashealth.Among others the proposals to create a Development Financial Institution (DFI)monetise assets set up new economic corridors and increase the ambit of the NationalInfrastructure Pipeline (NIP) are promising. These measures in conjunction with aconducive policy environment are expected to increase the demand for basic materials inwhich we specialise. The relevance of metals and mining are more pronounced today thanever and at Vedanta we are rightly positioned to cater to the growing needs. The clarioncall for 'Aatmanirbharta' is very well founded and we are perfectly aligned to thegovernment's vision of a self-reliant nation. In line with this we have augmented ourpositioning to 'Desh Ki Zarooraton Ke Liye Aatmanirbhar Bharat Ke Liye.'

GROWING IN A VITAL INDUSTRY

There is a definite focus on India's natural resources sector as a key enabler insupporting the nation's development. Apart from being a contributor to GDP it underpinsthe supply of raw materials to the nation's burgeoning manufacturing sector. Developmentof this sector thus holds the key to the nation's ambition of becoming fully self-reliant.

In recognition of this India is turning a new leaf with the introduction of the Minesand Minerals (Development and Regulation) Amendment (MMRDA) Bill 2021.

A welcome move its passage will significantly boost India's metals and miningindustry by inviting private participation in the exploration of key resources such ascoal and gold.

It is set to redefine the norms of exploration of mineral blocks and adequately utiliseIndia's unused mineral reserves. Currently natural resources contribute 1.75% to India'sGDP whereas in countries with similar reserves the contribution is 7-7.5%. The MMRDABill is a gamechanger in this context and is expected to significantly improve the shareof the sector in the national economy. It will contribute to the creation of over fivemillion jobs and will considerably reduce India's import dependence for basic materials.

BEING THE DEVELOPER OF CHOICE

Over the years Vedanta has built one of the most recognised and impactful CSRprogrammes in India. As a natural resources player we are inextricably linked to thecommunities near our operations and have become an inalienable part of their livelihood.

From here stems our deep sense of responsibility and extended obligation beyond what ismandatory.

During FY2021 we spent over Rs 331 crore on social development activities spreadacross our core impact areas of education health sustainable livelihoods womenempowerment sports and culture environment and community development. Each Group companyplayed its part by executing the respective CSR agenda in line with the Group guidelines.

This year supporting communities during the COVID-19 crisis also assumed precedencewith the distribution of nearly 25 lakh meal and ration kits and over 7 lakh health andhygiene kits.

As we stand today our flagship CSR initiative for women and children has touched a newmilestone with the setting up of 2300+ Nand Ghars in 11 states. It continues to pave theway for the model Anganwadi movement across the country and till date we have positivelytouched the lives of ~52000 women and ~65000 children through the initiative.

BEING NATURALLY RESPONSIBLE

As the largest natural resources company of India we are well aware of theresponsibility that rests on our shoulders. It's in this context that we have atarget-oriented environmental programme. We believe that good ecology is good business andstrive our best to give back more than we take. Consequently over the past four years wehave achieved water savings of ~9.23 million m3 and have implemented an active plasticprotocol in three of our business units. We have also seen 100%+ fly ash utilisation.

With regards to GHG emissions we have a vision to substantially de-carbonise ouroperations by 2050 and towards this extent we have built a Group-wide carbon forum withCEO-level engagement.

I'm also proud of the fact that we are among the 24 Indian companies who in late 2020signed the declaration towards carbon neutrality. Today we have achieved ~13.6 milliontCO2e in avoided emissions compared to our 2012 baseline.

BEING THE EMPLOYER OF CHOICE

Vedanta is home to thousands of skilled professionals who seek to develop theircareers aligned to our culture and facilitated by an employee-friendly diverse andmeritocratic environment. Their efforts have been instrumental in taking Vedanta to itscurrent stature and their contribution to ensuring business continuity has beenphenomenal at the height of the pandemic.

The safety well-being and happiness of our employees is of utmost importance to usand we are taking every measure to ensure the same. Towards this we rolled out healthprogrammes for our employees and business partners during the year. We also focused ontelemedicine promotion of mental health and health monitoring so that our people remainedsafe and secure during these trying times.

We constantly engage with best-in-class service and technology providers to ensure thehighest level of safety for our employees and have managed to achieve a zero-fatality yearat our largest business - Hindustan Zinc.

AHEAD WITH INDIA

As I look forward I see an opportunity of a lifetime ahead of us. Our economy hasregained its growth momentum and we are operating in an industry that complements thisgrowth curve.

With India's young energy consistent governance strong consumption and a thrivingprivate sector I'm positive that the best for the nation is yet to come. At Vedanta weare cognisant of the immense growth potential and will invest in opportunities that createvalue for all stakeholders. As we power ahead we stand in solidarity with India itsambition of being Aatmanirbhar and creating a 5 trillion-dollar economy.

Best regards
Anil Agarwal

.