Vedanta Ltd., India’s leading diversified natural resources company, has announced a delay in its plan to split into separate business entities. According to Ajay Goel, Chief Financial Officer, the demerger is now expected to be completed between June and July 2025, pushing back the earlier target of completing the process by the end of fiscal year 2025. Goel noted that while the process is nearly complete, final approvals and formalities will require an additional six months. Shareholders and creditors are scheduled to meet next month to vote on the proposal.
The revised demerger plan includes significant changes to the company’s earlier strategy. Vedanta had initially planned to split into six separate entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and the parent company Vedanta Ltd. However, after consultations with stakeholders and lenders, the company decided to retain its base metals business within the parent company, instead of spinning it off as a separate entity.
The company is also working to restart its copper operations at Thoothukudi in Tamil Nadu, which fall under the base metals division. Officials emphasized that keeping base metals within the parent company will not impact the overall value for shareholders. Despite the revision, Vedanta remains committed to long-term growth and operational excellence across all its divisions.
Vedanta Chairman Anil Agarwal has previously stated that the demerger is intended to transform the company from merely managing assets to directly owning and strengthening them. The goal is to simplify operations, enhance transparency, and make each business more competitive in its sector. Once the demerger receives the necessary approvals from lenders and the National Company Law Tribunal (NCLT), it will allow global investors to invest in individual Vedanta businesses separately.
The move is expected to make Vedanta a more focused and streamlined organization, enabling it to pursue growth strategies in each of its core industries more efficiently. While the timeline has shifted, the company’s commitment to strengthening assets, improving operational efficiency, and enhancing shareholder value remains unchanged.
In summary, Vedanta’s demerger—now anticipated by mid-2025—represents a strategic effort to unlock value, simplify corporate structure, and position each business for long-term growth, while ensuring that the base metals division remains integral to the parent company.
