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WEF 2022: I am not a buyer for govt’s stake in Hindustan Zinc, says Vedanta’s Anil Agarwal

WEF 2022: I am not a buyer for govt’s stake in Hindustan Zinc, says Vedanta’s Anil Agarwal

Vedanta has a stake of nearly 65 per cent in Hindustan Zinc, while government’s residual stake is 29.58 per cent; could have taken the company far ahead if government was not there, says Agarwal.

WEF 2022: I am not a buyer for govt’s stake in Hindustan Zinc, says Vedanta’s Anil Agarwal WEF 2022: I am not a buyer for govt’s stake in Hindustan Zinc, says Vedanta’s Anil Agarwal

Vedanta, which is the single-largest shareholder in Hindustan Zinc, will not be looking at increasing its stake in the listed entity at a time when the government is looking at selling its residual stake in the company, said Anil Agarwal, chairman, Vedanta Group. 

“I am not a buyer. There will be so many buyers. I am not an investor. I want more people to make money out of it and there are so many individuals, equity funds who will be very keen to buy this and they are looking forward to this kind of opportunity to come,” he said while speaking to Business Today at the World Economic Forum at Davos. 

“Government should not be in a business. They held on to this for 15 years. For every decision, we have to go to the government. We could have taken this company [Hindustan Zinc] far more ahead and we couldn’t take it because government was there and there were compulsions. It is a right decision they have taken,” he added. 

According to the latest shareholding pattern of Hindustan Zinc, the government has a stake of 29.58 per cent while Vedanta has nearly 65 per cent. 

Fibre, Technology & Oil 

“Fibre will take our country to a different level. We are the largest producer of optical fibre. We are creating software, system integration. We are the fourth-largest producer of display glass, which is used for cell phones, laptops, TVs,” he said while highlighting the fact that India imports $17 billion worth of such glass. 

The multinational conglomerate has already acquired companies in Japan, Taiwan and Korea.  

“Semiconductor is also glass. We have tied up with the world’s largest semiconductor manufacturer from Taiwan and we are going to invest $2 billion,” said Agarwal. 

“We have to create another Taiwan. We have to create another Silicon Valley. Silicon Valley has been created by Indians and why can’t we create it in India. There should be clusters for different industries,” he added. 

It can happen in the current government regime as clearances are fast with less bureaucracy, he said 

‘Not Iinterested In BPCL’ 

Agarwal further said that while he is not interested in BPCL, he will take a call when the time comes. 

“Like BPCL, government probably has 50 other companies... Absolutely not interested [in BPCL]. As and when it comes will see. At this point of time what I am looking at is that if government can corporatize this company, they can create five times more value,” he said.  

“We have reservoir of oil & gas but [need to] break all the rules within the rules. That is what we have been saying. You have no idea how many permissions we need to just dig a hole. We have been governed by ONGC. How a competitor will allow us to be better than him. We don’t get clearances as we want. We can’t even sell our product,” added Agarwal.  

“In Davos I have not done anything except going to all the oil companies and saying that come and invest in India, he added. 

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