Vedanta eyes 60 lakh tonne aluminium, 500k bpd oil after May 1 demerger

Vedanta Ltd has laid out an ambitious expansion roadmap across its key business verticals — including aluminium, oil & gas, and power — following its planned demerger, positioning each unit for independent growth and scale.

The demerger, effective May 1, 2026, is designed to create focused, sector-specific entities with sharper strategic direction and capital allocation. Post restructuring, each business is expected to operate as a standalone, globally competitive company, unlocking value and accelerating expansion plans.

In a letter to shareholders, Chairman Anil Agarwal said each business is being positioned as a globally competitive entity with scale, cost leadership and clear growth pathways. “Through this transformation, each of our businesses is emerging as a ‘Vedanta’ in its own right,” he noted.

Aluminium business

A major thrust is on the aluminium business, where Vedanta aims to double its production capacity to 60 lakh tonnes per annum. The company is leveraging backward integration and cost efficiencies to position itself among the lowest-cost aluminium producers globally. With strong demand visibility across infrastructure, automotive, aerospace, and electrification sectors, the expansion is expected to strengthen Vedanta’s global leadership in the segment.

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Oil & gas

In oil & gas, the company has outlined a significant scale-up strategy targeting production of 300,000 to 500,000 barrels per day. This growth will be supported by a planned investment of $5 billion, aimed at enhancing exploration and production capabilities. Vedanta’s energy vertical is expected to play a critical role in meeting India’s rising energy demand, while also improving domestic output from existing reserves.

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Power

The power business is also set for rapid expansion. Vedanta currently operates 4.2 GW of capacity and has a pipeline of 12 GW under development. The company plans to diversify its energy mix by expanding into hydropower and nuclear energy, alongside its existing thermal portfolio. This positions Vedanta Power to emerge as one of the top energy players in the country, aligned with long-term demand growth and energy transition trends.

In addition, the company is investing heavily in future-ready sectors such as iron and steel, with plans to scale capacity from 40 lakh tonnes to 100 lakh tonnes per annum, supported by strong raw material linkages and integrated operations.

Vedanta has earmarked ₹15,000 crore in growth capital expenditure across its businesses to support these expansion initiatives and build long-term earnings visibility.

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The post-demerger structure is expected to enhance operational efficiency, improve capital discipline, and provide each vertical with the flexibility to pursue independent growth strategies. The company is also focusing on leveraging technology and AI to drive productivity and innovation across operations.

Overall, Vedanta’s expansion blueprint signals a shift towards scale, self-sufficiency, and global competitiveness, as it prepares for its next phase of growth following the structural transformation.